brad's Experience
Written: Oct 07 '03 (Updated Oct 07 '03)
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Pros: Totally free checking. Premium interest paid on any balance. Wide range of services.
Cons: No local branch. Inherent problems without a physical, local presence.
The Bottom Line: Beyond not being able to drop by for last minute business or loan officers, Netbank offers a premium banking experience within a free checking account.
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| brad's Full Review: NetBank |
Hello to everyone. Great to be here.
Today, I would very much like to share with you my experience banking with Netbank. Banking is a near necessity in any American's life; it's difficult to conduct one's business without banking, or having an account with a bank. This is an important point. I think, among the many things that we, the consumers consider, banking services should be near the top. Banking is so widely used and inter-tangled with our lives that I think we take it for granted.
Personally, I've never taken banking for granted. I've switched banks five times, and held accounts at four or five other banks, at the same times as my primary accounts, over the years. For example, right now I have a local bank that I use for emergencies (a community bank with a free checking account - First Minnesota Bank - www.firstmnbank.com), while I do most of my banking with Netbank. Because Netbank is an Internet only bank, I can't stop into a local branch in cases of emergency. That's one of the few drawbacks of Netbank. I have a third bank account, which I recently opened, for the sole reason of getting a free University of Minnesota Golden Gopher sweatshirt (where I work). Hey, I really need that sweatshirt for "casual" days and for Gopher sporting events. I plan to close this bank account after a year. The account balance is at $.01 right now-:).
A bit more about my online banking history before I begin the review...
I've been banking online since September of 1999. At the time, there were few online banks. Most of the major banks had yet to fully implement the range of online services that are available today. I wanted the bill-pay service, especially, as well as the ability to monitor my account on a more regular basis, rather than waiting for monthly, paper statements to arrive in the mail and reconcile once a month. When I think of it now, that seems ridiculous. Look at how far we've come.
In late 1999, there were two prominent online banks: wingspanbank.com and Netbank. I chose Wingspan because it was owned and backed by Bank One, one of the largest banking institutions in the U.S. At the time, I was concerned about the solvency and long-term prospects of online banks, so I ruled out Netbank. In early 2001, Wingspan began charging for many of its services, and demanded a minimum balance. There wasn't a free checking account option anymore. Well, I demand a lot from my bank, and Wingspan wasn't cutting it anymore. I sought an alternative. By 2001, many banks had implemented the range of services I wanted, but there wasn't a single bank that came close to offering everything that Netbank did, nor does to this day.
So, here I am, still with Netbank, in late 2003. Netbank's long-term prospects as an independent bank look better than ever. It's posted a profit over several consecutive quarters, and most analysts in the sector are very bullish on the company and the stock. So, I'm not at all worried about the future of Netbank.
With all of this out of the way, let me tell you about Netbank.
Netbank offers the full gamut of online services. More importantly, they offer a checking account that includes all of the terms and conditions that are as favorable, or more, than any other bank. I'll begin with the basic terms of the basic checking account.
Netbank has two checking accounts. This may seem odd, and it is, as most banks offer several different types of accounts, with varying degrees of service levels (and perks). Netbank consolidates all of the advantages of virtually any type of checking account into its most basic offering: Netbank "NetValue Checking." Its other offering "SuperValue Checking," will not be discussed, because beyond a higher rate of interest paid on carried balances (which is a nominal rate increase), there isn't any added benefit, that I can see.
With NetValue Checking, you are offered the following terms:
- No minimum balance requirement to earn interest
- Only $50 initial deposit to open
- Free first box of checks
- Free, unlimited online bill payment and presentment
- Free online canceled check images, front and back sides
- Unlimited check-writing privileges
- No charge for your ATM card or VisaŽ check card
- Free online bank statements
- Overdraft protection via your Money Market account or Checking Overdraft Protection (COP account)
- Multiple Deposit Options
- 24/7, 365 days out of the year, toll-free human response banking support
- Industry standard fees for situations such as, overdrafts, wire transfers, stop-payments, and other typical banking services.
- Netbank must adhere to the rules and regulations set forth by the applicable governmental agencies, just as any other bank, in any domestic jurisdiction. In other words, Netbank is subject to the same banking regulations as virtually any other bank you might choose as an alternative. This is a legitimate bank. For purposes of disclosure, Netbank is a Federal Savings Bank (FSB).
Okay, plenty of banks offer most of what is listed above. What separates Netbank from the pack?
For starters, they pay a relatively high interest rate on any balance you carry. Many banks pay interest on your balance, if you have a certain type of account. Netbank pays you interest for any amount of money you have in your account, whether it's a dollar or $2,000. Keep in mind, that this Netbank account is a free checking account. How many banks pay you interest in a free checking account? Not many. Few. Without research, I might guess there isn't another.
The rate that Netbank pays you for the balance you carry is a premium rate. The rate paid is comparable to most money market accounts. I might go as far as to say that it beats the rate paid by CD accounts, by other banking institutions. Currently, it is 1.30%, APY. The current Prime Rate is 1.00%. For Netbank to pay its current rate on this account is rather astounding, considering the market for free checking accounts.
Netbank has a unique online experience. The interface is clean, with the links and buttons easily recognizable and accessible. Wells Fargo, for example, I will say is a disaster, compared to Netbank. When you log into Netbank, you know where you want to go and what you want to do. Upon logging in, all of your Netbank accounts are listed, by default. For example, I have my NetValue checking account, a Netbank money market account, and a CD (certificate of deposit).
When accessing the checking account, you'll see the most recent activity on your account, since your last statement. Included in this presentation is a list of checks, check card activity, bill-pay transactions, and any other transactions. The list of checks presentation is especially impressive, as it includes a ready link to view the front and back of each check. Not many banks offer the imaging of the checks, free of charge. You may even be inclined to not use your paper check register, as you’ll be able to readily reconcile your finances, and view what you used a particular check for.
There is also an "update" feature, which allows you to check to see if anything has posted to your account during the current banking day, even though it has yet to technically clear. This is handy for electronic funds transfers. It's nice to check, upon demand, to see if something has happened, if you're especially anxious to see a transaction.
Netbank has a secure, internal communications function. For example, if you need to communicate with Netbank about a certain matter, you don't need to call them. You can use their secure, "Bank Mail." You ought to know, that you should not use standard email to communicate with people about private information. The Bank Mail is completely secure, using the Secure Socket standard and encrypted email, and is within your login session. Without this function, you would have to either call Netbank or write to them by snail mail. Regular, standard email is inherently insecure. Netbank has resolved this problem with Bank Mail.
The bill-pay component of your account is free of charge so long as you use it at least once over a three month period. Within Netbank's default session, you'll enter a separate session for bill-pay functions. The bill-pay functionality with Netbank is as straightforward as it can be. Of course, as with typical bill-pay services, you can easily set up recurring payments, set up, essentially, any payee you desire (even if it's your mother), and schedule one-time payments. Payments tend to transpire over only a couple of days if the payee accepts electronic funds transfers. If not, as with any other bill-pay service, the service takes upwards of 10 days for the payee to receive a paper check. Payments can be canceled up until the day before they are scheduled to transpire. A history of bill-pay payments, whether scheduled, paid, or canceled, can be viewed.
Netbank provides for postage paid deposit envelopes. That's right; if you don't have direct deposit and you need to make a deposit, Netbank will send you Business Reply envelopes, with postage paid, so that you can send in your paper deposits. No need to keep track of Netbank's address and pay your own stamp postage for these deposits.
Netbank does not charge for ATM/Check Card transactions. Of course, whoever owns the ATM machine may charge you for the transaction, but at least you won't be dealt the double-whammy. Netbank has partnered with an extensive network of ATM providers, and a list of available machines is posted at their website. It's customizable, so that you can enter your address, or wherever you are, and try to find an ATM machine where you won't be charged in any case.
Re-ordering checks could hardly be more simple. There is a ready link within the default interface for this function. Netbank deals with Deluxe, which is the leader and partner with most banks for personal checks. You can customize your checks to your endless desire. Deluxe offers a seemingly endless range of options for customized checks, and all of these options are available to you through Netbank.
Most of your Netbank experience will be paperless. Netbank will send you paper notices, as required by law, but you can even opt out of these. Of course, it's nice to know when your bank is up to something, if privacy issues have changed, or if some regulation or law requires a notice, but you have the option to receive an email alert of new notices. These notices are secure, as they are only available if you log into your Netbank account. There is a special section for "enotices." If you desire, you can avoid the endless trail of paper letters to your postal mailbox.
What's wrong with Netbank?
Well, since it doesn't have any physical branches, you can't simply drop in and make a last minute deposit or conduct last minute business. This is an inherent drawback to banking with an Internet-only bank, but how often do you really need to do such activity? If you're quite observant of your personal finances, then you plan ahead, and it's not as if you have to plan, way ahead. Most of what you do can be done within a couple of days notice.
Netbank offers an "account consolidation" service. However, this service doesn't work. This is a service that has been attempted by many other financial institutions, to varying degrees of success, but in general, the service hasn't worked, no matter the institution. With all of the security measures that financial institutions have put in place (and for good reason), it is difficult to access external accounts without manually logging in. For this reason, Netbank's account consolidation service does not work. For example, I have several credit cards and third party financial institutions of which I'm involved, and I've tried to have Netbank access these accounts within my Netbank login session, but it hasn't worked. Perhaps, other services can offer such functionality, but Netbank hasn't succeeded, despite several attempts by me to tweak login information between the external accounts and Netbank.
A bit more about the interface in general and specific... One of the best things about Netbank is the online experience, of course. The interface is clean, the frames of the screens are well-defined, and the color scheme is easy on the eyes (white background with dark red and black frames). Important links are prominently located and intuitively worded so you can easily navigate around the site. As best I can put it, everything just fits together. It's a great surfing experience.
I guess what it boils down to, in choosing Netbank over other banks that offer many of the same services, is its innovative approach to online banking (i.e. Bank Mail, paperless statements and notices, and making the interface as convenient as possible), the interest that the bank pays on your balance (and the RATE it pays you), and all of the freedom of the checking account (never a minimum balance, no fees for the most common of services; and extra, free services such as postage paid deposit envelopes).
These are the main benefits. There is a lot of content in this review. I wanted to lay as much of it out here as possible, while keeping it as organized as possible. Hopefully, I've done that.
You might also note that I have banked online for quite some time, and with a few different online banks, including Bank One, Wells Fargo, PayPal, X.com (now defunct), and my local bank, First Minnesota Bank. I've seen quite a few online banking experiences, and I can tell you that Netbank is the winner, hands down. If for no other reason, put your money into a Netbank checking account because you will earn an outstanding, relative, rate of return (alongside other common services).
Check out their website, sift through the FAQs, check out a demo, and maybe just try them out for a while. It only costs $50 to open an account (initial deposit), and you even get a free box of checks to start out with, so there is no cost to try out Netbank, other than your time.
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I haven't commented on any of the non-checking services that Netbank offers. For the record, Netbank offers some of the most competitive rates for CDs, Money Market accounts, Home Equity lines of credit, and offers outsourced brokerage services as well. If you want an all-in-one banking experience, you can go with Netbank as well. Of course, with HELOCs and other loans, it's nice to have a local loan officer to visit with in case of rough spots in your cash flow. Oh, and Netbank offers a Visa Platinum card as well.
Yours, Brad.
Recommended:
Yes
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Epinions.com ID:
brad
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 - Top 500 |
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Member: Brad Engelmann
Location: Helen Township, MN
Reviews written: 161
Trusted by: 94 members
About Me:
brad@engelmann.us (email address)
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