Best Deals in Online Banking, 2016

Many customers are saying bye-bye to national and large regional banks.

(Image credit: Thinkstock)

Many customers are saying bye-bye to national and large regional banks. Among those who switched banks over the past year, more left the big banks than joined them, with the banks suffering a 15% loss in customers, according to a recent survey of consumers in the U.S. and Canada by consulting firm Accenture. Where are they going? Credit unions and community banks had a small bump in business, but online banks saw the biggest benefit, scooping up 11% more customers.

What's the attraction of internet banks? Because they don’t have the overhead costs that come with full-service branches, they tend to have lower fees and higher interest rates. Online banks are upping their customer-friendly features, too. Some have jumped on the mobile-wallet bandwagon; Ally Bank, Bank of Internet USA, Charles Schwab Bank and EverBank now offer debit cards with Apple Pay compatibility. Online banks often have kinder overdraft policies than those of traditional banks, too, with some letting you borrow from a line of credit for a low fee. And with mobile-deposit capability and refunds of ATM fees now common among the online banks, customers can do without tellers or a dedicated network of ATMs.

Disclaimer

Interest rates are as of early August 2016

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Lisa Gerstner
Editor, Kiplinger Personal Finance magazine

Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.