DISQUS

Michael B. Rubin · 2 years ago

As long as you've double-checked for FDIC insurance and stay below the minimums discussed, you're at risk for nothing more than an unlikely and slight inconvenience.

Still, there's the question of "Why bother?" should you be happy at your existing brick and mortar bank. Of course, it's for the interest rates. By keeping their offline costs so low, online-only banks can and do pass along their savings to you in the form of higher interest rates paid on your savings.

Additional return without additional risk? Usually that's too good to be true. Not this time.

Me · 2 years ago

After facing layoffs in the past 6 six years it was always in my mind to make sure I have access to my money immediately. Online banking was scary - I couldn't get my cash that day.

After careful consideration I asked myself, "When did I ever need that much money in one day?"

"When were there ever an emergency that I couldn't wait a few days to get the cash?" I finally took the plunge and got the bug - I have three online savings accounts.

I feel really smart with my money and laugh at the terrible interest rates my bank offers. I do have some money in their money market fund for those expensive emergencies, but the rest of my money is online.

Mrs. Micah · 2 years ago

I have great faith in the FDIC. Maybe too much...though things seem to work out ok.

I'm also a child of the internet generation--and while I'm aware of web insecurity, I trust most encryption.

I remember pointing out to my mom that (back in the day) they'd actually make an impression of your credit card when you paid with it. So, sure there was risk in sending your information online...but not more than in leaving an impression of your credit card with someone offline.

The Saving Freak · 2 years ago

We keep the bulk of our emergency fund in an online savings account but for just the instance of needing money immediately we keep $1000 in a local bank. This gives us the security of if all hell breaks loose we have an immediate safety net followed by a 2 day safety net.

mapgirl · 2 years ago

I agree with "Me". Rarely is there ever an emergency I have where I can't wait 3 days for an online banking transfer into my regular checking account. If I really need THAT much money THAT quickly, a credit card will suffice. Therefore my emergency fund is online and I still keep some money around for ATM withdrawls at a brick and mortar bank.

CommRE · 2 years ago

"...with $2.5 million in assets and $2.3 million in deposits (liabilities). "

I believe you mean billion, not million.

As far as on-line banking, I am also very trusting. I have our e-fund on-line with USAA and do all banking on-line.

Flexo · 2 years ago

CommRE: Absolutely... you are correct. Billion with a B.

Denise · 2 years ago

I do all of my banking online as wel. I don't do the brick and mortar bank. I have direct deposit for my paycheck, and all of my bills are paid online. I save at least 2 hours by doing it that way.