I switched over to Citibank a few years back from a brick & mortar that I had been using for years. Citi had lots of great features and interest rates that couldn’t be beat. The brick & mortar savings I switched from had almost no interest and a limit of only 3 savings withdrawals per month.

Later on, I opened an ING Electric Orange account (for my blog) as well as a savings account. I like ING. The downside with them is that you can’t write paper checks against their checking accounts. (They will write and mail checks on your behalf if there is no online alternative. However, there are times when this will not work.)

However, I have NOT totally dismissed my brick & mortar bank. I still have a passbook savings account whose sole purpose is to receive deposits of paper checks. Alas, the one big disadvantage of these online banks is that they don’t receive paper check deposits — at least not in my area (some locales offer a brick & mortar — a CLICK & mortar — that you can use in addition to your virtual account). So, I have to deposit these checks in my brick’s ATM and then transfer these funds to Citi.

Despite the minor paper check inconvenience, I really like banking online. However, the transition from brick & mortar was not entirely painless. If you have a number of automatic debits, it can take some time to convert these to your new bank. (I will probably stay with Citi forever as one of my stock purchase plans have increased the minimum purchase. I am currently grandfathered under the older, smaller miniumum but if I change then I am subject to the higher amount.)

Online banking has made it much easier to save. I have automatic transfers to savings that put my budgets on autopilot. I can pay most of my bills without lifting a finger. The interest rates are better. The online tools are cools. It’s a great setup.

If I could get past the paper check thing, I would be TRULY online.

I signed up with Alliant Credit Union last year and have enjoyed their savings account. I am thinking of getting a checking account for added convenience. I don’t live in their brick+mortar area, but they have a large ATM network should I ever need it (I haven’t thus far). They have a slower, 2-3 day, ACH transfer time, but their rates have been steadier than other banks (then again they’re a credit union). I read somewhere credit unions sometimes lag bank rate changes (good on the decreases, not so good on increases). I joined my local PTA ($10) to be eligible for Alliant.

My use of online savings accounts has primarily been to earn a few dollars on the money I have set aside for my monthly budget and emergency fund rather than get nothing for it. The online savings accounts keep my money available (6 withdrawals per month) and provide a modest return. A few hundred over the year is better than nothing at all.

I occasionally review http://bankdeals.blogspot.com which lists all kinds of bank deals (reward checking, savings, CDs, etc). The blog has a lot of informative reviews and comments of experiences. If you’re looking around for banks (as Bob’s post is about) I’ve found the blog helpful in gathering background.

I occasionally need to remind myself that a difference of 0.5% (or even 1%) on the few thousand in an account isn’t worth the hassle of moving the money or opening a new account, especially after finding a dependable and predictable bank.