[frugalgirl]

Has anyone ever considered doing business with an internet bank rather than a local bank? I haven't, but with all these new fees popping up and interest rates being so poor, I'm thinking about it.

The only one I've heard much about is Ally Bank. Does anyone know of any others?

[Almostever]

I have always used local banks and never tried an internet bank. Though, you are right about the fees and the interest rates. Does an internet bank charge you less fees than a local bank does?

[CloverLee]

I'm not sure exactly how an Internet bank would work? How would you make your deposits? With a money card maybe? I can do most all my banking on line now with the one I'm using and it is very convenient.

[jason]

It took me a while, but I do have an account with ING. Mostly for better savings rates, but I still keep a local bank for my normal banking stuff.

[bornsaver]

I've seen those Ally ads on television, and I've given it some thought. I would want to do as Jason does and keep my checking account at a local bank. But I'd like to open an account online that would pay more interest than anything I have right now.

[Greenbudget]

I have never tried internet banks either. Are they as reliable as brick and mortar banks? If so, they would be a good alternative to local banks.

[jason]

Originally Posted by Greenbudget

I have never tried internet banks either. Are they as reliable as brick and mortar banks? If so, they would be a good alternative to local banks.

Not sure about Alley, but ING is FDIC insured just like a typical brick and mortar bank. I have not heard too many problems with them.

Now paypal I do not consider a bank, but know people who use it like one. They have websites dedicated to the problems with them, and to my knowledge are not FDIC insured.

I would do some research before making any moves and start off small.

[abbys2cents]

I checked Ally Bank's website, and it says they are FDIC-insured. They've been around awhile: Our History | Ally Financial

They have a toll-free number on their site. I might call and check on some of the accounts. The CD I was looking at doesn't have any minimum deposit required and neither did the savings account.

[jason]

Originally Posted by abbys2cents

I checked Ally Bank's website, and it says they are FDIC-insured. They've been around awhile: Our History | Ally Financial

They have a toll-free number on their site. I might call and check on some of the accounts. The CD I was looking at doesn't have any minimum deposit required and neither did the savings account.

Since you mentioned CD's I checked bankrate.com and saw they are listed there. CD Rates | Highest Yield Bank Certificate of Deposit Interest Rate I usually check them for CD's but to be honest, the CD rates were so bad in early 2011 I stopped checking. Something I need to look into again if they are getting better.

[abbys2cents]

The best rate from Ally that I've found is their 4-year Raise Your Rate CD: Increase Your CD Rates: Raise Your Rate CD | Ally Financial. It's currently 1.59%. You have the option of raising your rate twice for the 4-year CD and once for the 2-year.

This page gives you a comparison of CDs, savings, and money market accounts: Compare CD Rates, Compare Money Market & Savings Rates.