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Web checking accounts boasting high interest rates (recently 6% at Monroe Bank and Trust) are popping up like daffodils. Interest rates may drop with the Federal Reserve's cuts in the federal funds rate. But at a recent 2.25%, FDIC-insured ING Direct was paying almost five times the national average of 0.47% for checking accounts at brick-and-mortar banks, according to a survey by Informa Research Services.
Among the most attractive accounts are those offered by brokerages Schwab and Fidelity and by online-only banks. But the Web also allows you to sign up with far-flung community banks that offer competitive deals.
Most banks offer free checking and online bill payment (at Everbank, you need a minimum of $1,500 for free bill paying). Schwab, Fidelity and City National Bank even include free paper checks. With HSBC Direct, however, you can't write a check. ING Direct doesnŐt offer checks, either, but the bank will cut and mail one for you.
You can often open an account with as little as $1, and none of the banks requires more than $100. There are no minimum-balance requirements for basic checking, although you may be asked to arrange for direct deposit or to use your debit card a specified number of times each month. Electronic bank statements are universal.
None of the banks charges for ATM withdrawals, and Schwab, Fidelity and City National Bank reimburse all ATM surcharges. You can avoid fees at ING Direct and UnivestDirect if you use ATMs in the surcharge-free Allpoint network. Other banks reimburse fees up to a given amount each month.
POSTED BY: Ed (May 13, 2008 12:44 PM)
I have an ING Electric Orange checking account. The number one draw for me is the simplicity. It's in everything from the way the site is designed to how the disclaimers are written.
POSTED BY: Nola (June 14, 2008 11:43 PM)
Well, my Fidelity MySmartCash account is 1.49% right now as of my May 31 statement. Frankly I don't know if that's so great. It was 3.2% on January 1 and it's done nothing but fall since then. My caveat with the Fidelity account is that you cannot see a combined history + balances page online and there is no "My Spending Report" feature the way you can do both with Wells Fargo online. Does anyone have a checking account sub 10k with a better % right now? I'd like to know which bank.
POSTED BY: gene (July 13, 2008 01:46 PM)
Nola: Try Wachovia Money Market with checks at 3.25.
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