Bank Of Internet USA - High Yield Savings

Average Score:

•   No ACH system, but everything else you need

  Bank of Internet's clean website, and very competitive rates warranted a call to find out more about their High Yield Savings account. Is it a leader in the online banking space or a wannabe?

  The rep I got on the phone was a little sassy and well-versed in the details of the account. She mentioned that the only way to apply is online, all statements are online, and they only perform a soft credit check. She did concede that a signature was required to be mailed in, but frankly, this gives me some level of comfort, and regardless it doesn't hold up the opening/operation of the account. They allow for joint accounts and beneficiaries, and there's no maximum balance for any of the accounts.

  The one place where Bank of Internet appears to have dropped the ball is their lack of an ACH system. The rep said they're working on it, but Bank of Internet has been around since 2000 so I have my doubts on their intentions of actually developing/implementing their own system. Here's my thinking...

  As a bank, if you don't have an ACH system, it may actually work for your benefit. Bank of Internet is designed for online bankers, so the assumption is that their customers will probably have another, existing bank that they could use to transfer money. Well, why not push the cost of maintaining/servicing that system on the other bank? Bank of Internet doesn't have to worry about a complex online banking system and also doesn't have to worry about talking to disgruntled customers when their transfers don't happen immediately, or the transfer limits are too low - they can blame it on the other bank. Plus, it may just be enough of an inconvenience for some customers to consider switching all of their accounts (Checking & Savings) over to Bank of Internet, where account to account transfers are easy and plentiful! Of course I could be totally off, but that's my conspiracy theory.

  So Bank of Internet may have made the decision to skip an ACH system (my personal opinion) or are in the process of developing it (their rep's opinion). Either way, they're a solid bank, offering great rates and have been in the online game for over 8 years. I think they're a legitimate banking option.

  Posted by Maxx -- March 20, 2009