Switching to an internet only bank

[Phantomaniac]

I'm getting rather fed up with Bank of America as of late and I'd love to switch to a completely online bank like Ally or USAA. The main problem is that I occasionally I sell things on Craigslist so I have a need for cash deposits. I understand this is rather hard to do with an internet only bank without also having an account open at a local branch (which I really don't want to do). Any thoughts or experiences for internet only account holders would be great.

 

[Markbnj]

Honestly I don't see the reason to prefer an "internet-only" bank. If you don't like BofA then maybe try TD or another that might treat you better. In any case, when it comes to banks there is something to be said for capital, stability, and multiple channels.

 

[SlitheryDee]

What can an internet only bank do that BoA can't?

 

[BlitzPuppet]

I'm getting rather fed up with Bank of America as of late and I'd love to switch to a completely online bank like Ally or USAA. The main problem is that I occasionally I sell things on Craigslist so I have a need for cash deposits. I understand this is rather hard to do with an internet only bank without also having an account open at a local branch (which I really don't want to do). Any thoughts or experiences for internet only account holders would be great.

I have USAA and love it. Granted, the only reason why I have it is because my dad was an officer in the Navy.

 

[webdave]

Join a local credit union.

 

[Phantomaniac]

I have USAA and love it. Granted, the only reason why I have it is because my dad was an officer in the Navy.

My dad is retired army and I have my car insurance through USAA, so I should be eligible for all other accounts. Only issue is the cash deposits thing.

 

[Printer Bandit]

what happens if you lose internet access?

would suck to have no access to your money.

 

[PastTense]

I am a strong believer in having accounts at more than one institution. Suppose for example you are a victim of identity theft and your account at one institution is frozen. I would second the suggestion for an account at a local credit union--which won't have the high fees of Bank America. Otherwise for your cash you could use it to pay bills or buy money orders which you mail into your internet bank.

 

[HardcoreRobot]

what happens if you lose internet access?

would suck to have no access to your money.

what happens if your car breaks down and you have 'no access' to your money at a B&M bank?

 

[KB]

USAA isn't internet only. There are a few branches. Maybe you are lucky enough to live by one?

I would be amazed if it was possible to deposit cash to an internet only bank. The would of course defeat the purpose of internet only. One option is to give cash to a trusted family member and they write you a check which you can deposit.

 

[Jimzz]

Join a local credit union.

Yep, I dumped WF and joined a CU, PenFed. Most of my banking is online but like the OP get cash from time to time and drop it off at a branch.

 

[xanis]

A credit union with decent online capabilities seems like the best choice.

 

[Schfifty Five]

I'm getting rather fed up with Bank of America as of late and I'd love to switch to a completely online bank like Ally or USAA. The main problem is that I occasionally I sell things on Craigslist so I have a need for cash deposits. I understand this is rather hard to do with an internet only bank without also having an account open at a local branch (which I really don't want to do). Any thoughts or experiences for internet only account holders would be great.

Could you let us know what kind of problems you are having with BoA?

I've been with them for many years now (20+ years) and never really had any issues with them.

 

[KeithP]

Only issue is the cash deposits thing.

How much cash are we talking about? Can't you just hold on to it and use it for groceries and whatnot?

-KeithP

 

[Naeeldar]

what happens if your car breaks down and you have 'no access' to your money at a B&M bank?

It's called a credit card. I never ever use cash or my bank account for anything unless I'm forced too. I like my free points and miles.

 

[Phantomaniac]

Could you let us know what kind of problems you are having with BoA?

I've been with them for many years now (20+ years) and never really had any issues with them.

Having to take cash out of an out of network ATM is awful. You get charged by the ATM provider AND BoA charges you. The only time I ever need cash is on spur of the moment events when I am out with friends and there is no BoA ATM to be found. Also the interest rates are pathetic compared to other banks.

I'm thinking my best option is to have my checking account with a local bank or credit union, and move my savings account to USAA.

 

[jagec]

Use cash to buy money orders, deposit at online bank. Done.

 

[monkeydelmagico]

I use ally, usaa, and pnc.

ally: savings acount/MMA with decent rate. I don't use them exclusively. Tend to shift money from checking to this account electronically. I think you can do cash deposits via ATM.
usaa: I have accounts with them but don't really use them except for a small liquid savings account. Their savings account rates suck. Checking allows for free atm world wide. Good rates on credit cards if you have revolving credit.
pnc: local branch services, autopay for utilities/bills, and money back credit card

 

[xanis]

I use ally, usaa, and pnc.

ally: savings acount/MMA with decent rate. I don't use them exclusively. Tend to shift money from checking to this account electronically. I think you can do cash deposits via ATM.
usaa: I have accounts with them but don't really use them except for a small liquid savings account. Their savings account rates suck. Checking allows for free atm world wide. Good rates on credit cards if you have revolving credit.
pnc: local branch services, autopay for utilities/bills, and money back credit card

This is basically the setup I use, sans USAA. Checking and "Emergency" savings accounts are at PNC, and everything else is at Ally for the interest rates.

 

[Schfifty Five]

Having to take cash out of an out of network ATM is awful. You get charged by the ATM provider AND BoA charges you. The only time I ever need cash is on spur of the moment events when I am out with friends and there is no BoA ATM to be found. Also the interest rates are pathetic compared to other banks.

I'm thinking my best option is to have my checking account with a local bank or credit union, and move my savings account to USAA.

Ah, well, BoA does suck at that. I agree.

However, I don't see how an internet only bank will help solve those problems.

 

[NikolaeVarius]

How do Credit Unions function outside the local area?

I currently have 3 banks, but I want to condense that down to 2.

Currently Citi, Chase, and First Niagara. I want to take my checking from citi and First Niagara and condense that to a single CU. I'll keep the chase because I get tons of CC benefits from having my Checking/DD there.

Are there better nationwide CU's I should be looking at?

 

[nageov3t]

I've been with Charles Schwab for about 2-3 years now and really have no complaints. (they're 99.9% internet-only... I think they have one physical branch out in Reno)

I initially switched because it seemed to be the best bank that didn't charge ATM fees (and reimbursed me for other company's fees), allowed check deposits via smart phone, doesn't charge fees for withdrawing money at foreign ATM's, and made it easy to link accounts to transfer money around to/from accounts at other banks (eg: I have my landlord's account linked to mine with deposit-only permissions so that I can automatically transfer my rent every month)

but no, you can't deposit cash. I also maintain a checking account at a shitty local bank where I just keep the minimum deposit. in the exceedingly rare scenario in which I need to deposit a lot of cash, I'll do it there and then transfer it over to my Schwab account online.

 

[Red Squirrel]

Join a local credit union.

This.

I ditched RBC last year for a local co-op bank. Switched everything over, mortgage, credit line, RRSPs, savings, checking, everything. Best thing I ever did, better mortgage rate, better service, less fees. I got about 300 bucks the other day for dividends. What other bank will actually give you money?

If I call them, I actually get to talk to someone. That's a big bonus too.

As for if you use it outside the area, you will get service charges if you use debit, but typically you get service charges anyway if you're not using your bank's ATM, so that wont really change. Typically when you're out of town and need an ATM you'll go to the first one you see unless you know the area and know where your bank's branch is. I like to try to put everything on the credit card when I'm out of town, and when I do take out money at an ATM I take out like 100 bucks. I don't really go out of town often enough to worry about it.

 

[lothar]

Unless you live in Chicago, Des Plaines, Denver, El Segundo, San Francisco, San Mateo, Oakland, Tempe, Houston, Newark, or Dulles; most local credit unions are completely worthless.

 

[TallBill]

I use USAA. For the few times that I have cash deposits I can just get a money order at the post office for cheap and then upload those with my phone.