Posts Tagged ‘Online banking’

Online Checking:Is it for You?

Tuesday, March 23rd, 2010

Online Checking:

Online Banking has been around for years.  But as this article in the WSJ describes, Americans are now even  using them for checking services.  In the past, a service confined to local banks and branches.

As many customers become more accustomed to online financial transactions, we are less “afraid” of online banks.

They also have many things to offer, that beat bricks and mortar banks:

by Daquella Manera, http://www.flickr.com/photos/daquellamanera/

Benefits of Online Checking

  • no minimum balances to obtain interest on your money.
  • no ATM fees
  • charge less for international transactions
  • automatic features to prevent overdraft fees such as “sweep” accounts-that transfer money from savings to checking
  • no per check charges/free checks

Online checking with good reviews:

This is certainly not a complete list of available companies, but in my research these were highly ranked by personal finance bloggers, and consumer groups.

So how do you decide which to use.  Mainly use your own needs to help you.  What is most important to you?

What are your Online Checking needs/questions:

  • high interest rate because you tend to keep a high balance.
  • ATM fees or free overdraft protection.
  • Do you have to travel out of the country?
  • low or no minimum to start your account-maybe you want to start small and see how it works for you.

One of the main drawbacks to these accounts, is depositing money-you may have to mail checks-and wait for them to show up in your account-if you company can’t pay you online.  So your own personal habits are important.

Some companies are developing scanning software that will allow you to scan your check and email it to them, for more immediate deposit into your account, according to the WSJ article above-hopefully that will spread soon to other online banks, with checking.

Keep in mind-if you need “Emergency Money Resuscitation” my free e-book is still available-filled with tips for saving money today, right now!  It will also sign you up for my free newsletter-The Millionaire Nurse Money Letter, and a mini-course on personal finance.  So go, now while you have it on your mind!

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Posted in personal finance | 3 Comments »

Online banking: ibankUP, A Review of a New Online Banking Option from Plastyc for Gen Y

Wednesday, October 14th, 2009

Online banking got a new player this week, with Plastyc announcing a new online banking option directed towards Gen Y.  See this news release from the CEO, Patrice Peyret.

Plastyc, a privately held company and provider of pre-paid Visa cards, has added an online banking option for teens (with a parent’s permission) and for young adults who don’t need all the services of a full-service bank, but need more financial options than just a pre-paid Visa.  According to the website a new account can be set up in 5 minutes, with only a social security number required-no other bank account, or other credit info needed.

See this page for a summary from the ibankUp website on a comparison of various fees to traditional banking.

What are the benefits of such a service:

  • Lower monthly fees
  • No overdraft fees-you can’t overdraft, because the system will not let you spend more than is in your account.
  • Balances are always accurate, since you access the site for checks-no paper allowed, and the card use is immediately reflected electronically.
  • Your money can be deposited by direct deposit, credit card transfer or the use of the Green Dot MoneyPak sytem already available at many popular retailers such as Wal-Mart, K-Mart, Rite-Aid and CVS, just to name a few.
  • They do allow a system for cash rewards, if you shop at their ibankUpside mall.
  • You can access your  balances free online, smartphone, and by a cool facebook widget, and for a small fee at most ATM’s

What are the downsides:

  • Only your first online check is free, after that they are two bucks each.
  • Although the site promotes itself as a way to teach about/limit overspending, it still means using plastic to pay for things-which some studies suggest leads to overspending.

So, what do I think about this new e banking option?  Anything that limits overdraft fees, and limits costs, while at the same time improves visibility and immediate feedback, I think is a plus.  To think that the world will ever go back to cash only is naive even if spending may be a little higher without that pulling of green stuff out of your pocket.

But more importantly, what do you think?  Love to hear your feedback on this new option of online banking for the gen-y consumers.

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Posted in credit cards, personal finance, Planned spending aka budget | 1 Comment »