Ditching a traditional branch-based bank for an internet-based bank might be the single best way to snag a higher interest rate.
Online banks tend to have lower overhead costs than traditional banks. That allows them to offer more competitive rates on checking and savings accounts, and on certificates of deposit (CDs).
Using a free online resource like Money Talks News’ account comparison tool will help you see the differences between rates offered by online and traditional banks.
As for which online bank is best for you overall, though, it helps to consider ratings such as those of J.D. Power. Earlier this year, the market research firm rated online banks based on customer satisfaction.
The average overall satisfaction score of online banks was 863 out of 1,000 — 57 points higher than that of traditional banks.
The online banks that earned above-average scores include:
- Capital One 360: 867
- Ally Bank: 865
- Charles Schwab Bank: 863
USAA earned the highest score by far — 893 — but J.D. Power excluded it from its rankings because of its membership requirements. USAA serves military members and their families.
The online banks that earned below-average overall customer satisfaction scores are:
- E-Trade Bank: 857
- Discover Bank: 851
- State Farm Bank: 848
- Nationwide Bank: 837
- Bank of Internet: 819
The ratings were based on a poll of about 2,700 bank customers, who commented on five aspects of customer service:
- Channel activities (such as a bank’s website, mobile app and live phone support)
- Products and fees
- New account opening
- Problem resolution
What’s your take on online banking? Share your experience by commenting below or over on our Facebook page.