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Online Banking
- Most flexible online banking Bank of America *Est. $0
- Best online checking account Schwab Bank High Yield Investor Checking *Est. $0
- Best online savings account FNBO Bank *Est. $0
- Online savings for special occasions, events SmartyPig *Est. $0
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- Integration with E*Trade brokerage accounts
- Unlimited ATM fee reimbursement
- Fraud protection
- Very few branches
- Checking fee (*Est. $15) unless you meet terms
- Low interest on checking
E*Trade Bank has only a few brick-and-mortar branches in 17 states, but it offers unlimited reimbursement of ATM fees nationwide for its Max-Rate checking accounts. Another advantage to E*Trade Bank is its convenient transfers among three types of accounts: brokerage, savings and checking. The yield on savings is reasonable by current standards. You can avoid the monthly fee on a checking account (*Est. $15) by setting up a monthly direct deposit or keeping at least $5,000 in the account. You also need to keep a similar balance to earn interest on checking. For free checking with no minimum balance, consider Schwab Bank High Yield Investor Checking, which also reimburses ATM use for withdrawals.
Most comparison reviews based on large-scale surveys of customer satisfaction cover just the biggest banks. However, the recent ratings at Keynote Systems, Inc., do include E*Trade Bank, comparing it with 25 others, including several other Internet banks. Reviews of online banks published in 2007 at CNNMoney.com and at Kiplinger.com also cover E*Trade Bank, as does an older review at Forbes.com. Two blogs also review E*Trade Bank: GetRichSlowly.org and Bargaineering.com.
Our Sources
E*Trade Bank ties for ninth place out of 26 banks in these detailed ratings of customer satisfaction -- down slightly from its ranking the year before. However, it still outranks most Internet banks.
Review: Keynote Scorecards for Financial Services/Banks, Editors of Keynote Systems, Inc., March 4, 2009
2. CNNMoney.com
This somewhat outdated overview of Internet banks says they offer better service, higher rates and fewer fees. E*Trade Bank earns praise for its "complete menu of features online at the best rates."
Review: E*Trade Bank, Carolyn Bigda, Aug. 3, 2007
3. Kiplinger.comDetails/Subscribe
E*Trade Bank earns top ranking in this 2007 article for its same-day access to deposits -- something most banks delay -- but the E*Trade site now says that while funds start to draw interest right away, you can't make a withdrawal till the third business day. The more recent 2008 Kiplinger's top picks don't include E*Trade Bank.
Review: Online Banks Branch Out, Thomas M. Anderson, Feb. 2007
Forbes includes some reviews of online banks, but most write-ups are rather dated. Top-rated is Citi.com, but E*Trade Bank is among those getting a Best of the Web award because it has a large network of ATMs, though it can be slow to post deposits.
Review: Forbes Best of the Web: Banking, Jeanhee Kim
This review, from a site named "the most inspiring money blog" by Money magazine in April 2008, recommends E*Trade Bank as one of the top three for online savings. This is based partly on features and rates, partly on users' comments.
Review: Which Online High-Yield Savings Account is Best?, J. D. Roth, Apr. 5, 2009
Blogger Jim Wang ranks E*Trade Bank fifth here for online savings, but praises it "because you can link your savings account to a brokerage account and instantly transfer funds between the two."
Review: Top Five Online Banks: Savings Or Checking Accounts, Jim Wang, April 25, 2008
About two dozen users review the E-Trade Bank Complete Savings account here, with its electronic transfers to and from other banks getting quite mixed reviews.
Review: E-Trade Bank Complete Savings -- Reader Reviews, Contributors to eMoneyCentral.com
Online Banking Runners Up:
5 picks by top review sites.
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4 picks by top review sites.