No. of Recommendations: 0
Ok, here's my question.
Why shouldn't I use netbank as a replacement for my credit union account? (which has a 1.00% interest rate savings and a no interest no fees checking)

I've already opened a money market and checking account with netbank and am waiting for that annoying 30 day period to end before I set up
direct deposit.

I like having interest checking with no minimums and a money market with a decent rate for e-fund and such things.

Are there caveats I'm missing here? My credit union has no local presence so it might as well not be a B&M as far as I can tell.

(I also just discovered multiple no-surcharge ATMS near my house! woohoo!)

help?
Ed
Print the post Back To Top
No. of Recommendations: 0
It all comes down to a question of motivation.

Netbank is a publicly traded company. As such, their motivation has to be to return the maximum amount of profit to the shareholders (if they don't, the shareholders can sue them). NetBank does not view you as a person, but as a potential source of profit.

Lately they have adopted a few customer-unfriendly policies and hidden fees. They can be avoided, but do you really want the hassle of jumping through their hoops?

Your CU is owned by its members. The directors will probably try to run things to personally benefit themselves & their friends, but at least they don't have stockholders breathing down their necks.
Print the post Back To Top
No. of Recommendations: 0
Lately they have adopted a few customer-unfriendly policies and hidden fees. They can be avoided, but do you really want the hassle of jumping through their hoops?

Hidden fees? Which ones are those? I read through their fees schedule before opening the accounts and I'm going to be VERY unhappy if there are some other fees lurking around out there...

I dont mind avoiding fees if they are listed in there. Especially since my CU is happily sitting on my income and not offering me ANY interest whatsoever on it.

thanks,
Ed
Print the post Back To Top
No. of Recommendations: 3
Why shouldn't I use netbank as a replacement for my credit union account?

Here are some things to consider:

Netbank's annual report makes reference to trying to get to a point business-wise where they don't have to pay as much interest to attract new customers. Over time, then, the better rates may not be as attractive.

Also, the advantage of a credit union account is that when you need specialized service, as for an unusual loan or help with a problem, you can go talk to a real person who's authorized to help you.

My advice: Chase good interest rates on your savings accounts, but don't bother on your checking. You shouldn't be keeping huge amounts of money in a checking account anyway if you care about return on your money, and the dollar or two a month you're giving up on your small checking balance will be worth the accountability.

The strategy I've pursued is to keep my liquid cash savings balance in a Schwab account tied to a money market fund, and less-liquid savings in an ING account earning 3% APY. For checking, I use Bank of America, which doesn't pay interest but doesn't incur fees either, at least not where I am.

-- Mark
Print the post Back To Top
No. of Recommendations: 0
Also, the advantage of a credit union account is that when you need specialized service, as for an unusual loan or help with a problem, you can go talk to a real person who's authorized to help you.
Hmmm, I'm beginning to think that I'm in an unusually unfriendly CU... (grin)


My advice: Chase good interest rates on your savings accounts, but don't bother on your checking. You shouldn't be keeping huge amounts of money in a checking account anyway if you care about return on your money, and the dollar or two a month you're giving up on your small checking balance will be worth the accountability.

The strategy I've pursued is to keep my liquid cash savings balance in a Schwab account tied to a money market fund, and less-liquid savings in an ING account earning 3% APY. For checking, I use Bank of America, which doesn't pay interest but doesn't incur fees either, at least not where I am.



From your reply I just realized that I left out another rather important factor. I want free bill pay! (grin)
I am working on paying off my CC and student loan debt and being able to schedule payments to vanish as soon as my paycheck is deposited every two weeks is helping a lot as I can pay twice a month and save a teency bit on interest.

Did I mention that my CU has pricey bill pay that didn't work correctly when I tried it and didn't even allow for biweekly payments?

Ed (who REALLY needs to provide more details when asking questions)

Print the post Back To Top
No. of Recommendations: 0
From your reply I just realized that I left out another rather important factor. I want free bill pay! (grin)

Certain accounts at B&M banks (such as the Bank of America California MyAccess account) offer free bill pay if you have direct deposit, and you may find their ATMs more numerous and convenient.

However, their interest checking won't be close to NetBank's.

Maybe NetBank is a good solution for you?

-- Mark
Print the post Back To Top
No. of Recommendations: 0
NetBank's not the only place where you can get billpay.

FIBI will do so as long as you keep your average balance above $500.

They're private, so not as subject to market forces.
Print the post Back To Top
No. of Recommendations: 1
Many NetBank customers have voiced concerns, here and at other message boards, about customer-unfriendly policies, practices, and fee structures.

NetBank's fees - "account inactivity" fees, fees for services like a copy of a cancelled check or a stop-payment order, are HIGHER than you encounter at megabank B&Ms. Those fees and costs can wipe out quite a bit of interest earnings, particularly since the IRS considers ALL non-IRA bank interest taxable but does NOT allow you to deduct bank service charges from those earnings.

Even more than the fees, there have been complaints from customers about having difficulty reaching telephone customer service, having routine transaction errors corrected in a timely manner, so-so processing of mailed deposits. Also NetBank does not offer some services like On-Demand ACH, check-image viewing, and ATM surcharge rebates.

There are some satisfied NetBank clients who post on these boards, but I personally would look elsewhere for a more user-friendly institution.
Print the post Back To Top
No. of Recommendations: 0
Ed: keep in mind that almost all interest-bearing cash-equivalent investments are earning VERY LOW yields right now. The best money-market mutual funds (i.e. Fidelity, Vanguard) are paying yields of around 1.80%, check some of the fund yields at www.imoneynet.com

Your credit union may or may not offer the level and calibre of service you desire but some options you have include:

1. Comparing other branchless OLBs such as First Internet Bank of Indiana (recent winner for "Best Online Bank" in a thorough poll sponsored by the MSN Online Banking message board), American Bank/PC Banker, Bank of Internet, USAA FSB, Umbrella Bank, and State Farm Bank.
Some of them offer great rates and better overall service and pricing than NetBank, particularly when you look at the big picture of the total combination of service quality and cost of various transactions as well as ease of use.

2. Comparing other credit unions which you might be eligible to join - some CUs are VERY responsive to members and offer awesome deals.

3. Comparing some local community banks in your area - some of these offer surprisingly good deals which are not advertised outside of the local market area.

I hope this gives you more options. If you decide to go with NetBank, I hope you have an excellent experience with them - there are some folks who have been satisfied with NetBank and I think the key is knowing exactly what things you might be charged for and how to avoid those charges.
Print the post Back To Top
No. of Recommendations: 0
check-image viewing

Umm, Netbank *does* offer check-image viewing. Not always the best quality scan of the check, but it's there.
Print the post Back To Top
No. of Recommendations: 1
I've been with Netbank for over 3 years now. I like them.

Caat
Print the post Back To Top