San Diego, Calif.-based Bank of Internet USA is a newer bank, having started up in the year 2000 while many traditional banks have been around for decades. It was also one of the first banks to exclusively operate online. Even though itâ€™s a new kid on the block, itâ€™s still a solid performer, and has received an â€śAâ€ť health rating from DepositAccounts.com, another LendingTree company, which indicates itâ€™s a solid choice for consumers looking for a new bank account.
U.S. citizens and resident aliens 18 years or older are welcome to apply for an account with Bank of Internet. To apply online, youâ€™ll need at least three pieces of information: a social security number, a U.S. driverâ€™s license or state ID, and a physical mailing address (P.O. boxes arenâ€™t allowed), along with other basic information about yourself like your name and phone number.
In this review weâ€™ll cover Bank of Internetâ€™s checking, CD, money market, savings, and IRA accounts. Weâ€™ll discuss the interest rates, fees, and rules that come along with each account so you can decide whether Bank of Internet will be the best bank for you.
When it comes to CD rates, Bank of Internet is a bit like Goldilocks. It doesnâ€™t offer the best CD rates out there, but it also donâ€™t offer the worst. In addition, its minimum deposit size to open a CD is relatively standard among banks, however it will be a bit cost-prohibitive to many people, especially those just starting out their savings.
One option to get around this is to find another bank with a lower minimum deposit size for CDs, or to simply open a savings account until you have enough cash saved up to open a higher-interest-earning CD.
We really like all of Bank of Internetâ€™s checking accounts because they each come with low fees â€” or even no fees. You can use any domestic ATM you want without paying any Bank of Internet fees, and each of its checking accounts even offers at least some, if not an unlimited amount, of ATM surcharge fee reimbursements. This makes these accounts great for people who use ATMs frequently.
In addition, many of its accounts offers great interest rates. Some of these accounts â€” like the Rewards Checking account â€” are even currently rated as some of our best online checking accounts.
Unfortunately, Bank of Internetâ€™s Money Market account offers a lackluster interest rate, especially compared to the best money market account rates out there â€” but we do like that it has no monthly account maintenance fee and no minimum balance requirement. This will make the account accessible to anyone, but if a high interest rate is what youâ€™re after, you can still find higher-yielding accounts with no fees from other banks and credit unions.
Bank of Internet does offers a higher rate than most banks, but still, itâ€™s not the top contender out there. For that, youâ€™ll need to instead turn to our recent rankings of the best online savings accounts.
Its terms, however, are quite fair. There are very few fees that come with this account, and if most people use it as intended, itâ€™s possible that they never will pay any fees for having a savings account with Bank of Internet. In addition, there is no minimum balance, so itâ€™s easy to get your savings started with this bank.
Weâ€™ll be honest â€” Bank of Internet doesnâ€™t offer very high interest rates on its IRA CDs. It may be convenient for you to open an IRA CD here if you already have an account, but if earning the best returns on your money is your primary concern, you will be better off choosing one of these IRA CDs with much higher rates.
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