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
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