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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: sachio on May 30, 2012, 03:28:03 PM

Title: Are online Banks the way to go? Or is Local Better
Post by: sachio on May 30, 2012, 03:28:03 PM
Dear Moustachers,

With the increase of ridiculous fees to where you have to pay the bank for them to keep your money, I was wondering what the best savings and checking account options would be? I'm moving to Orlando in 2 days, and I'd like to start up a new bank account. I heard Mr. Money Mustache mention something about ING direct, and they do have online banking. Are there pros and cons to having a local credit union over an online bank for instance? What should I go for to start off, with direct deposits and online bill-pay?

Thank you!
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: arebelspy on May 30, 2012, 03:37:03 PM
Some discussion that may help you here:
http://www.mrmoneymustache.com/forum/ask-a-mustachian/bank-recommendation-needed/

and here:
http://www.mrmoneymustache.com/forum/investor-alley/free-checking-and-free-checks/
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: sachio on May 30, 2012, 03:40:20 PM
Some discussion that may help you here:
http://www.mrmoneymustache.com/forum/ask-a-mustachian/bank-recommendation-needed/

and here:
http://www.mrmoneymustache.com/forum/investor-alley/free-checking-and-free-checks/
thanks!
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: Bank on May 30, 2012, 04:02:37 PM
I love my local bank.  With a few hoops to jump through (direct deposit, 5 debit card transactions per month) I get 2% interest on my checking account, free ATMs anywhere in the world, and a nice real person when I call the help line.

I'm not sure how typical it is to find a bank like mine, that is simultaneously technologically advanced yet grounded in the community, but it couldn't hurt to look around.
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: smedleyb on May 30, 2012, 05:29:33 PM
I have one of each -- online and local.  They're connected so that I can transfer funds between them.  I like the online account for CC payments, the local bank for mortgage, the occasional odd check, and taxes. 
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: Will on May 30, 2012, 07:08:44 PM
I agree that it is entirely possible and useful to have one of each.  I not only have a great local/regional bank, I have a great CU and ING Direct.  Each is useful for various reasons, and while I could eliminate 2 and just use one, there really is no reason to do so.
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: Lars on May 30, 2012, 07:30:55 PM
I have one of each -- online and local.  They're connected so that I can transfer funds between them.  I like the online account for CC payments, the local bank for mortgage, the occasional odd check, and taxes. 

+1 for one of each. I like the local bank for the convenience and service and the online one for the better rates and ease of transferring money.
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: KMMK on May 30, 2012, 09:57:50 PM
I use 4 - 2 local, 1 national, 1 online. As a start, I'd probably go national. Don't know how US credit unions work, but here they're generally provincial, so having 1 nation-wide not-online bank is nice. Or a credit union, if this works if you move. And then add an online. ING for me as well.
Title: Re: Are online Banks the way to go? Or is Local Better
Post by: Will on May 30, 2012, 10:21:59 PM
I forgot to mention that with my local bank, just for setting up direct deposit and a few other hoops to jump through, I got $300 cash.  No minimum balance, no fees, everything is free (even the checks!).