Skip to main content
No. of Recommendations: 0
Although the itnerest rates and other services provided by NetBank look impressive, it is my understanding that NetBank doesn't reimburse ATM fees charged for use of other financial institutions' ATM machines. Accordingly, the money saved by a higher interest rate would be lost in ATM fees. Am I missing something here? Why doesn't NetBank reimburse these fees like most other internet-only bank?
Print the post Back To Top
No. of Recommendations: 0
Although the itnerest rates and other services provided by NetBank look impressive, it is my understanding that NetBank doesn't reimburse ATM fees charged for use of other financial institutions' ATM machines. Accordingly, the money saved by a higher interest rate would be lost in ATM fees. Am I missing something here? Why doesn't NetBank reimburse these fees like most other internet-only bank?

It all depends on the individual customer. A consumer who uses a lot of ATMs would be better off with a bank that had ATM reimbursements, and probably a lower interest rate (unless it's PCBanker.com). A consumer who doesn't use a lot of ATMs is better off with NetBank because of its higher interest than some other banks.
Print the post Back To Top
No. of Recommendations: 0
"Why doesn't NetBank reimburse these fees like most other internet-only bank?"

IMHO--NetBank rather pass those savings onto the customer in interest. Big difference of what customer, will have account there. For customers that value ATM reinbursements over better interest on $$. May not be that profitable of NetBank either.

Better Interest---No ATM Reinbursements.

ATM Reinbursements ----Less Interest

Which of the two 2 above normally would get the more profitale accounts for the Bank?
Print the post Back To Top
No. of Recommendations: 0
it is my understanding that NetBank doesn't reimburse ATM fees charged for use of other financial institutions' ATM machines.

You are correct. This is not an issue for me, because with the help of the links on NetBank's site, I was able to locate several no fee ATMs in my area.

sjcosta38
Steve Costa
Print the post Back To Top
No. of Recommendations: 1
Better Interest---No ATM Reinbursements.

ATM Reinbursements ----Less Interest


But you don't have to make a choice. Take a look at pcbanker, usabancshares, virtualbank..all of which reimburse ATM fees and have high interest rates.
Print the post Back To Top
No. of Recommendations: 5
If that's the case, then why not allow the customer to decide between interest rate and ATM refunds? Couldn't NetBank offer two different types of accounts?

Taking this idea further, wouldn't it be cool if a bank could offer a 6.00% interest checking account? The bank then might allow you to add various features to your account but each would incur a certain cost.

For example:
Want no minimum balance? Subtract .5% from the interest rate.
Want ATM refunds? Subtact another half percent.
Free bill pay? Free ACH transfers? Each would reduce your interest rate further.

You get the idea. Give the customer the ability to decide what is important to him or her.

I wonder if a bank could offer a "made to order" checking account of that sort?
Print the post Back To Top
No. of Recommendations: 0
When you have all these customized accounts it creates extra overhead and management costs for the bank. Each bank has their own philosophy on how they hope (in most cases) to earn a profit. Some banks have ATM reimbursements, some have high interest, some have good service, some have good features, etc. If there was one bank that was the epitome of everything it would dominate, but right now that's not the case. BTW, not to disparage USABancshares, because there are a lot of things which are cool about the bank, but it's terribly unprofitable. I definitely think they are going to either go under or sell their accounts to another bank before too long.
Print the post Back To Top
No. of Recommendations: 0
BTW, not to disparage USABancshares, because there are a lot of things which are cool about the bank, but it's terribly unprofitable. I definitely think they are going to either go under or sell their accounts to another bank before too long.

This is something I've been worrying about lately. I have an account with Compubank, which is perhaps not as generous as USABancshares, but does do ATM reimbursement and decent interest rates. They are still privately held, and AFAIK have never released any information about when they expect to achieve profitability.

What do other people think? Are you worrying about your OLB folding or being swallowed up? Obviously, they're all insured, so you wouldn't lose your money, but it would be a hassle to find a new bank and start up an account there.

For those of us who already have accounts, I suppose there's not much we can do anyway. But if anyone out there is considering opening a new OLB account, I would seriously recommend they consider the bank's ability to survive a potential shakeout.

gdh1
Print the post Back To Top
No. of Recommendations: 0
They are still privately held, and AFAIK have never released when they expect to achieve profitability.

You should be able to get your bank's financial statements from the FDIC web site. At least you should be able to see where they stand now, and their trend for the past year.
Print the post Back To Top
No. of Recommendations: 1
For example:
Want no minimum balance? Subtract .5% from the interest rate.
Want ATM refunds? Subtact another half percent.
Free bill pay? Free ACH transfers? Each would reduce your interest rate further.

You get the idea. Give the customer the ability to decide what is important to him or her.

I wonder if a bank could offer a "made to order" checking account of that sort?


The same net effect is to simply have one interest rate, and then charge customers a fee for everything. Fees for ATMs, fee for ACH transfers, fees for not having a minimum balance, etc. However, people don't like paying fees for everything, so they pick the bank that has the fees they are willing to pay "hidden" into their interest rate. That way, everybody "wins".
Print the post Back To Top
No. of Recommendations: 0
I hear what everyone is saying about higher rates versus lower fees. I did the math, and it does make sense. (For those who don't like word problems, go to the next post!)

At $1.50 a pop for an ATM surcharge and say an average of 3 withdrawals a month, that's at least $4.50 a month in fees. Multiply that by 12 months and you get $54.

Say Netbank charges for ATM withdrawals but gives 6% interest and Wingspanbank (which I currently use) reimburses ATM withdrawals but only gives 3% interest. Say your average balance is $5,000 for the year making the the interest savings equal to $150 ($5,000 * 3%). That makes the total NetBank saving equal to $96.

However, if your average balance is only $2,000 for the year, the annual interest savings would only be $60 for a whopping savings of $6, hardly worth making the switch.

If you notice, NetBank's high interest rates are only given on the money market accounts. In fact, the interest rate on NetBank's interest checking account is less than that of Wingspan. Also, bill pay is not available for a money market account. Further, the NetBank's interest rate is less than that of a money market account at a reputable mutual funds company like Vanguard or Fidelity. Even though it's not insured at a mutual fund company, I'd take my chances that they aren't going out of business any time soon. I can't say that for NetBank.

So, wouldn't it make more sense to park your money in Vanguard where it makes over 6% and transfer in and out when needed to an online bank such as Wingspanbank? Money would certainly be saved and the only thing that would be detrimental is the convenience of having both a checking account and money market account at one bank.

Sorry for the long post, but I guess I had a lot to say :o)
Print the post Back To Top