Online Banks?

[rockfan4]

Anyone using an online bank?

I have some cash that I want to use to help my stepdaughter and her husband purchase their first house. I might need it in a month, might need it in a year. It needs to be readily available when the right house comes along. The local bank is paying all of 0.02%, looking at Bankrate there are online banks like Ally paying 0.5%. Any fees that offset that rate? Any issues getting your money or closing the account when the time comes?
Given the poll results of the market thread, I don't want to put it into the market.

Thanks,

[wildthing]

Marcus... by Goldman Sachs. At least there's a big bank backing it. Not the highest interest rate out there, but if you want that extra peace of mind.

CapitalOne also has online-only options.

Otherwise, if you're more adventurous, Synchrony. They back the Walmart-issued credit cards among other things, so not a fly-by-night operation.

Comenity also backs some other retailers' in-store credit cards.

I have both Marcus and CapitalOne and CapitalOne and happy with both services. The only slightly more difficult thing with Marcus is adding a joint owner of the account.

[tdw28210]

https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts

[PorscheGAL]

I have been using American Bank for 20 years. Although I have never closed an account there, I have wired money to buy a house and cars and it has been easy.

I also have a checking account through Fidelity that has been easy to transfer in and out of.

[wdfifteen]

We both have Kasasa Bank accounts. The offer checking accounts that pay 3% APY for amounts up to $25,000 and 1% on a linked savings account up to $50k. The catch is you have to get online statements and use their debit card 12 times a month. It's a bit of a effort to keep the checking accounts topped up and make sure we use the cards. We use MrsWD's card for small purchases until we get up to 12 swipes, then put it away and use mine for the rest of the month. At the end of the month we sweep whatever we need from savings to checking. Because of we want to keep both accounts topped up at $25k and $50k all month we have another checking account for bills and use an Amex card for purchases over about $50.

[pwd72s]

I found some great banks online...

https://www.youtube.com/watch?v=nnDKS10oFjM

But to be serious..at a whopping .03 percent difference, is opening an online account instead of going with a local bank worth the hassle?

[Bill Douglas]

In these very uncertain times I'd be inclined to use a bank you trust. Such as your local bank. A better interest rate from a bank you don't know seems like a recipe for disaster.

Check their Standard and Poors rating before you trust anyone https://www.standardandpoors.com/en_US/web/guest/home

[rockfan4]

Originally Posted by pwd72s

I found some great banks online...

https://www.youtube.com/watch?v=nnDKS10oFjM

But to be serious..at a whopping .03 percent difference, is opening an online account instead of going with a local bank worth the hassle?

Not a .03% difference, a 0.48% difference. 0.02 vs 0.50.

Kasasa wouldn't work for me. I don't buy anything anymore, gas maybe once a month, rarely eat out, etc.

I'll check the Standard and Poors. Thanks.

edit:Maybe not.

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[Ayles]

Why not just cut them a cashiers check when the time is right. Guaranteed funds and no worries about additional banks etc...

[rockfan4]

Maybe you're right. If I deposited $25,000, the interest difference is only $10 / month. The other thing I wonder / worry about is if the 0.5% rate is an "introductory" rate, since the same banks don't pay 0.5% on a 3 month CD, why wouldn't they do that?