BEST ONLINE BANK contd

Here we continue from our last topic Top Ten Online Banks.
Here is number 9.


NATIONWIDE BANK

ADVANTAGES

Nationwide Bank pays the highest interest rates on long-term CD accounts in our review.

DISADVANTAGES

It charges monthly service fees on most of its accounts and you have to meet certain requirements in order to have them waived.

VERDICT

Nationwide Bank is one of the best online-only banks because it offers a full gamut of banking services along with competitive interest rates for its savings products.

Nationwide Bank earns our Top Ten Reviews Silver award because it has all of the banking servicesthat you expect from a brick-and-mortar bank, including loans, credit cards, and checking and savings accounts, and they're all available to you from the convenience of your home computer. Additionally, its interest rates are competitive and it gives you free access to an extensive ATM network. It even reimburses you for a limited number of fees on transactions made at out-of-network machines.

Credit

Nationwide Bank is one of just two online-only banks that offers a full range of credit products. It extends mortgages, home equity loans and lines of credit, as well as auto loans. It also provides credit cards, including rewards cards and student credit cards.

Interest Rates

Although Nationwide Bank's interest rates for its deposit accounts are average compared to the other online-only banks we reviewed, they're still competitive, especially if you're looking for a bank that offers a full range of banking services.

This internet-only bank offers three different types of online checking accounts. All accounts require an initial deposit of $50 and all levy monthly service fees; however, these can be waived by meeting certain requirements. The eChecking account earns the best interest rates, but in order to earn the highest rate and have the monthly service fee waived, you're required to maintain a balance over $10,000. If you have a lower account balance, your rate is lower and you have to set up direct deposit and use the debit card that comes with the account eight times per month in order to have the fee waived.

The savings account offered by Nationwide Bank is a good, basic savings account. You need $50 to set up the account and there's no minimum balance requirement to earn interest, but this savings interest rate is one of the lowest in our review. This account charges a $3 monthly service fee, but you can avoid it by maintaining a minimum daily balance above $300 or by setting up direct deposit for over $25 per month. Like the other savings accounts we reviewed, you're limited to six transactions per month. Each additional transaction results in a $5 excess activity fee.

Nationwide Bank's money market account earns better interest than the savings account, but it requires a $1000 minimum balance to open the account and you're charged an $8 monthly service fee if the balance dips below this amount. Like the savings account, you're limited to six transactions per month and pay a $5 excess activity fee for each additional transaction. This account differs from the savings account in that you're able to write checks against the balance.

Where Nationwide Bank's savings products shine is its CD accounts, which contribute to its position as one of the best online banks we reviewed. It's 60-month CD offers the best interest rate in our review and has some notable features. For example, after the interest is credited to your account, you can withdraw it during the term without penalty. Although early withdrawal penalties still apply to the CDs' principal, you may apply for CD Forgiveness if you carry Nationwide Insurance and have filed a claim and need your funds. It also offers CD Plus Only, a one-time interest rate reset that you can request during the initial term if rates increase. To open a CD, you need a $500 minimum opening deposit. As is common with all the CDs we reviewed, the interest rates vary depending on the length of time you're willing to lock in your funds, with the best rate available with a 60-month term.

Security and Support

Like all of the internet-only banks we review, Nationwide Bank is an FDIC member, which means that up to $250,000 of your deposits are insured and are recoverable in the event that the bank fails.

Nationwide Bank keeps your online bank accounts secure by using multi-factor authentication, as do all of the top online only banks we reviewed. After your first log in, it prompts you to select a SafeKey image and answer a set of secret questions. At this time, you can also register your computer, which enables you to skip answering the secret questions on subsequent logins.

After you establish your account, you can set up notifications that help you monitor your finances. For example, you can choose to receive alerts when your checks clear or when your ATM card is used. One of the features unique to this internet-only bank is the ability to check your balance and recent transactions via SMS text messaging.

You can contact Nationwide Bank's customer service team via the secure email form on its website or by calling one of the company's toll-free numbers. Like most online only banks, it has extended customer service hours but isn't available 24/7.

Convenience

Nationwide Bank makes it very convenient to conduct your banking online. You can set up direct deposit, and your account includes online statements. This online-only bank also provides mobile banking as a free service to its clients that have checking, savings, money market or CD accounts. The app is available on the iTunes store and Google Play, but you have to search for it since there's no link to the app on either store from Nationwide Bank's website. You can use the app on your phone to check your balance, view transactions, transfer funds, deposit checks, pay bills and find ATMs wherever you are.

Its website offers online budgeting tools in the form of an impressive selection of calculators for loans and savings. It also has financial education articles, how-to videos, FAQs for each type of account, a newsletter and a blog.

It's free to transfer money between your accounts, including non-Nationwide Bank accounts. The exception is outgoing wire transfers, which come with a $25 fee. Your deposited funds are available very quickly, typically within one to two business days.

You can withdraw funds from your Nationwide Bank checking and money market accounts using ATMs in the Allpoint, PNC Bank, Alliance One and MoneyPass networks, which gives you free access to over 76,000 ATMs nationwide. Additionally, it provides a limited number of ATM reimbursements, depending on the type of account you use. For example, the interest checking account includes up to six free non-Nationwide Bank ATM transactions; however, it doesn’t cover surcharges from the ATM owner.

CONCLUSION

Nationwide Bank is one of the best online banks we reviewed because of the complete range of banking services it provides, its competitive interest rates on its deposit accounts and the convenience it offers to its online banking customers.