Internet only banks are just that, banks that operate exclusively online. No brick-and-mortar. Really, all banks use the internet to store all your information. And, just like your bank down the street, internet only banks are FDIC insured and have extensive security in place.
But, one big perk with online banks is your ability to earn more money. Having none of the normal brick-and-mortar expenses, these additional costs can be passed on to the customer, you. This is the case with Able Banking, plus many more opportunities for your money.
Internet Only Banks for Your Savings
Able Banking specializes in money market accounts (MMA) and CD’s.
What is a money market account? A financial account that pays interest based on current interest rates in the money markets. They typically have a relatively high rate of interest and require a higher minimum balance to earn interest or avoid monthly fees. The resulting investment strategy is therefore similar to a money market fund offered by a brokerage.
What is a CD? Certificate of Deposits are similar to savings accounts in that they are insured and thus virtually risk-free; they are “money in the bank”. A CD has a specific, fixed term (often monthly, three months, six months, or one to five years), and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.
Able Banking requires a low minimum balance on MMA’s and the account can be linked seamlessly to your checking account. You get
continued access to your funds plus competitive interest rates (like other internet only banks, e.g. ING, Ally). And transferring between accounts is simple.
If you don’t need immediate access, they offer five different terms on a CD. You get better interest rates and that rate is locked in. It’s a guaranteed term and rate and you’ll know exactly what your return will be.
There are no fees and rates are markedly different than your bank around the corner. You also have the ease of opening new accounts and with Able Banking, their focus is saving and giving which makes it an educational tool for children.
Able Banking has decided rather than using advertising dollars (commercials, etc.) to launch their new internet only bank, they would use those dollars for charitable giving.
In short, when you sign up for an account with Able Banking, they will give you $25 to give to YOUR charity of choice. And, it’s ongoing. Each year, you’ll get an additional amount to donate.
You can simply enter any 501(c)(3)… which may be your local church, little league team or PTO. Able Banking makes it simple with their database allowing you to search or enter your charity of choice by using a zip code.
Internet only banks make banking easier, period. With Able Banking, you get the added bonus of saving and giving, completely at your own discretion. They are launching this February, by invitation only. Simply sign up on their site to get an invite when the doors open.
BTW: Able Banking is a division of Northeast Bank, which was established in 1872! This would be an ideal place for your emergency fund.
