Comments on: My nontraditional bank: pros and cons

By: Bargain Babe» Financial records: what do you keep?

Bargain Babe» Financial records: what do you keep? — Mon, 02 Aug 2010 16:24:41 +0000

[...] about and changes to my investment account, and disclosure pamphlets. I get the feeling my bank is required by law to send this info to me, but if I read each of these brochures I would be up [...]

By: Cathie

Cathie — Tue, 13 Jul 2010 23:50:34 +0000

I’ve been using a non-traditional bank for years, and I love it! Frankly, normal banks make me uncomfortable. My online bank doesn’t have ANY branches in my state, so I keep an account at a credit union. That way, if I need to make a cash deposit (or checks, really; I don’t feel comfortable banking by mail, having had a check lost once) I can do it right down the street and just transfer it to my other account.

By: Bargain Babe» Lessons about blogging from Breckenridge, CO

Bargain Babe» Lessons about blogging from Breckenridge, CO — Tue, 13 Jul 2010 18:31:35 +0000

[...] share more of my own financial challenges, changes, and decisions (hence my post on nontraditional banks) [...]

By: bargainbabe

bargainbabe — Tue, 13 Jul 2010 14:34:45 +0000

@Diane Yes, my nontraditional bank is FDIC insured.

By: Diane

Diane — Tue, 13 Jul 2010 07:36:46 +0000

BB, is your new non-traditional bank FDIC-insured?

By: Diane

Diane — Tue, 13 Jul 2010 07:33:44 +0000

We have banked with an online-only bank for a couple of years because of the higher interest available. And in the last two weeks, we have opened some accounts with another online bank. As Tina pointed out, we only bank with FDIC-insured entities. With both banks, there is no local branch. All transactions are done online, by mail, electronically, and our newest bank will handle matters telephonically (24/7). The only annoying drawback is one that also occurs with local banks: a longer hold period on the availability of funds for new accounts. Also, if deposits are done by mail, it is necessary to not need the funds immediately, even after the new account period is over. So if one lives “hand-to-mouth,” the lure of higher interest will not be worth it. The debit cards we received will only be used for ATM transactions. I prefer to use a credit card for virtually everything else.

By: gena

gena — Tue, 13 Jul 2010 06:17:45 +0000

YES – nontraditional banks are great. I use one myself, and find I never have to go to a branch. When the bank had a problem depositing the check, they mailed it back to me with another deposit envelope (no stamps required). Much easier than a drive anyplace and a line for depositing. I could see downsides if you need instant access to money however.

By: bargainbabe

bargainbabe — Mon, 12 Jul 2010 21:46:13 +0000

@Myke Merchants are required to tell you if there is a debit card free upfront, though, so I avoid that by using cash or credit.

By: Myke

Myke — Mon, 12 Jul 2010 21:16:26 +0000

Be careful using the debit card as some merchants add a debit card fee to your purchase total.

By: bargainbabe

bargainbabe — Mon, 12 Jul 2010 20:47:25 +0000

@FrugalDad I have to drive about 30 minutes to get to a local branch, but in 9 months of banking with them, I have only needed to drive to the branch once. And when I got there, I realized they couldn’t help me and I could have gone to any ATM to take care of business.

By: dian

dian — Mon, 12 Jul 2010 20:16:01 +0000

I keep extra cash in online savings account where I can trf easily to checking and earn a higher int rate too. I dont keep alot of money in my checking acct – only enought to pay bills etc.

By: Tina

Tina — Mon, 12 Jul 2010 19:14:58 +0000

I am a banker (in the internet departmetn) and I say as long as you are FDIC insured it’s all good

By: FrugalDad

FrugalDad — Mon, 12 Jul 2010 19:12:58 +0000

Do you earn enough extra interest to compensate for the inconvenience of not having a local branch? How far to you have to travel if you have to visit a branch? How much does that cost, including your own time. Especially in your work, time is money.