Online Banking Pays Off
Kurt Brouwer June 29th, 2007
Jane Bryant Quinn has been on the personal finance beat for years. Her columns cover many topics, but they always feature solid information and tight, colorful writing.
In this Newsweek column, she writes that online banking has definitely come of age:
‘If you’re still picking your bank by whether there’s a handy branch nearby, you haven’t joined the 21st century…’
‘…You’re offered a limited range of low-cost, do-it-yourself financial options, available only online. ING Direct led the way, by creating a simple, high-interest savings account, with no fees and no minimum deposits, that’s federally insured. A true “people’s choice.” You can link it electronically to your regular checking account at any bank. With the click of a mouse, you move your money back and forth (the transfer takes two or three days.) You can bank by phone or mail, too…’
‘…What can you earn on basic savings today in online accounts? HSBC Direct, EmigrantDirect, Etrade Financial and Univest pay 5.05 percent. ING Direct pays 4.5 percent. That compares with 0.45 percent at the 50 highest-paying traditional banks, Informa Research Services reports..’
Now, the competitive landscape is changing. We are seeing that many traditional companies, such as Emigrant Savings Bank and Citi, have created a whole new online presence. We also are seeing pure Internet banks too. Shop around. It pays.