Advantages of an Internet Bank Checking Account
In the beginning, the main advantage of Internet bank checking accounts was the fact that, unlike traditional banks, they paid more than nominal interest. The interest rates were still minuscule - usually 1/4 of 1% - and Internet bank checking accounts charged monthly fees that canceled out the interest gains.
Most internet bank checking accounts have since dropped monthly fees as well as ATM fees. Before, the only option was to use another bank's ATM and incur those ATM fees, possibly on both sides. Now, most Internet bank checking accounts have negotiated agreements with ATM networks around the country to waive fees for customers. Other Internet bank checking accounts refund brick and mortar ATM surcharges, effectively making every ATM free to their customers.
Moving money between a traditional checking account and an Internet bank checking account was once a hassle, but most now allow free transfers of funds from one checking account to another. In addition, Internet bank checking accounts feature direct bill pay.
Some Internet banks offer even more perks, such as free paper checks, rewards programs attached to debit cards, and the ability to scan deposit checks for immediate deposit credit. With these additional features, it it is now less costly and often more convenient to use Internet bank checking accounts.