| Charts: Highlights of the checking
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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.
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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