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The
Deal On Internet Checking Accounts
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By
Alex Horvath Y To
take advantage of the aforementioned terrific deal one must only be
willing to open a checking account on the Internet—this one is at the
Web site for a specialized bank called Netbank.com. Netbank is one of the
many online banks that have emerged on the Web over the past year or so. Internet
banks are giving away the store in an effort to gain customers. While many
are fearful of giving out credit card information over the Web, the
opposite is assumed true of Internet checking, where the consumer must
divulge personal information to get the account. The
banks can typically be found through banner advertisements on search
engines such as Yahoo! or Ask Jeeves. The online banks seem to represent a
simple way to obtain a checking account or other bank account in a short
period of time without ever having to leave the house. Everyone
remembers the process of opening a checking account at the neighborhood
bank. First there is the application followed by two forms of
identification (typically a driver’s license and social security card).
You usually have to do this in person or assign someone Power of Attorney.
Then a brief background check with the meticulous folks at ChexSystems is
performed to make certain the customer hasn’t burned other banks and
merchants with bounced checks. After this comes the signature card. With
the online bank one must simply fill out the brief application, push send,
and within hours a new checking account is created. Then, once the money
is transferred or sent, the new checks and ATM cards are ordered. One
might ask, what is to stop not-so-nice citizens from opening up bogus
checking accounts? Getting an answer from an online bank was a challenging
task. The
customer service lines that are listed on the Web sites connect to clerks
who didn’t have very many answers. “We just send them a signature card
and have them mail a copy of their driver’s license,” was the answer
one bank employee had to the security question. The
telephone number listed on the Web site for “Banco Popular” landed us
in Puerto Rico—where they were nice enough to say that it would be very
easy to open the account and could even do it over the telephone. Banco
Popular operates in Puerto Rico and the United States. Bank
of America’s presence lent some credibility to the whole Internet
checking account question, since an account can be opened from their Web
site. But an operator at the corporate office in San Francisco could not
say how B of A verified Internet identities—and calls to B of A’s
media relations department were not returned. Wingspanbank.com
offers up to 4.5% APY on their Internet checking and has no monthly fees.
Wingspanbank.com has a visually appealing Web site and markets checking
accounts. The support representative at their toll-free number indicated
they use one of the big three credit reporting agencies before opening an
account. The representative was not able to explain how they verify
identities of applicants whose credit they are inquiring about with the
agencies. Checking
accounts via the Internet may well be the wave of the future. The deals
are attractive. Still, the question remains about what defines security
when the account is initially opened? Additionally,
since most of the Internet banks don’t seem to have a brick-and-mortar
neighborhood presence it is unlikely that making deposits would be an easy
task. The Web sites say that ATM withdrawals are free—except for the
charges most banks levy when non-members use their ATMs.
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