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Charts: Highlights of the checking study
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Internet banks vs. traditional banks
For comparison, Bankrate.com looked at a sampling of checking accounts offered by Internet banks. Here is a look at how they stack up against what is available at your local bank.

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Minimum to open -- Both interest and noninterest checking accounts can be opened for similar amounts, whether at Internet banks or traditional brick-and-mortar banks. The amount required to open the account and earn interest is $504.73 at Internet banks and $449.53 at brick-and-mortar banks. On noninterest accounts, there is scant difference, with Internet banks requiring a minimum initial deposit of $71.71 and brick-and-mortar banks requiring $72.56. Because of the limited number of noninterest accounts offered by online banks, the focus of comparison will be on interest checking accounts.

Average yield -- Internet banks have long offered much higher yields on interest checking accounts than their traditional brick-and-mortar counterparts. The average yield at Internet banks is 1.7 percent, dwarfing the 0.31 percent at brick-and-mortar banks.


Minimum to avoid fees -- Internet banks may offer much higher yields, but avoiding fees still means keeping a high balance. The average balance requirement on interest checking accounts at Internet banks is $2,454.55 and is comparable to the $2,294.61 required at traditional banks.

Monthly service fee -- The average monthly service fee on interest checking accounts at Internet banks is $6.05. While this is lower than the average of $10.81 at brick-and-mortar banks, one such fee is still enough to wipe out more than two months of interest on a $2,000 balance.

Bounced-check, or NSF, fee - Online or offline, bouncing a check will cost you. At Internet banks, the first bounced check will set you back $25.72, compared to $26.90 at traditional banks.



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Bankrate.com's corrections policy-- Posted: Dec. 1, 2005
 
 
 
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