A pure online bank has no branch offices. The idea is that the overhead needed to build, maintain, and staff branch offices could be saved and passed on to customers with higher deposit rates and lower fees. NewdominionDIRECT.com is an online bank based out of the Charlotte, North Carolina region that fits the bill. The online bank has aggressively grown their deposit base over the last couple of years by offering high rates on CDs, money market accounts, and savings accounts. Typical of most online banks, fees are kept to a minimum. But is the bank profitable and viable? NewDominion Bank reported an increase in first-quarter net income to $75,205 from $30,912 a year ago. That’s not a huge profit, but it’s not too bad in a day-and-age where the nation’s largest banks record million dollar losses regularly. Listed below are the current CD rates at NewDominion Bank

3 Month CD 1.50% APY

6 Month CD 1.90% APY

9 Month 2.31% APY

12 Month 2.40% APY

18 Month 2.72% APY

24 Month 2.76% APY

30 Month 2.75% APY

36 Month 2.75% APY

48 Month 2.75% APY

60 Month 2.75% APY

Certificates of deposit from New Dominion Bank require a minimum opening deposit of $3,000 for a regular account and a $500 minimum opening deposit for an IRA account. Early withdrawal penalties apply for any withdrawal prior to the maturity date of the CD.

More details about the rate deals at NewDominion Bank are available at newdominiondirect.com.

GMAC Bank was a longtime leader in offering some of the highest rates on savings accounts, money market accounts, and certificates of deposit that were available online for savers.  This month GMAC Bank shed their old name and is now operating online as the newly minted Ally Bank.  Despite the name change, the bank is still offering competitive rates and deposits are still insured by the FDIC. You might consider that more important than the bank name anyway. Today’s rates from Ally Bank include:

2.25% APY for an online savings account

2.10% APY for a 6-month CD

2.60% APY for a 9-month CD

2.80% APY for a 1-year CD

2.90% APY APY for a 2-year CD

3.10% APY for a 3-year CD

3.25% APY for a 4-year CD

3.50% APY for a 5-year CD

There is no minimum balance requirement for either the online savings account or the CDs offered by Ally Bank. The bank is also offering a special  ”no-penalty” CD. This CD allows a full withdrawal of funds for a customer anytime after the first six days of funding their account. No-penalty CDs are gaining popularity because they allow CD investors to grab higher rates should they become available.

Ally Bank advertises that they do not charge any fees on their deposit accounts. This is always nice to hear from an online bank considering just how many banks have increased maintenance fees and service fees over the last few years. Customer service also appears to be a priority for Ally Bank, as they have posted the current wait time to speak to a live customer representative posted on their website. Checking twice today revealed a wait time of 0 minutes in both cases. Not too bad for an online bank.

General Motors and GMAC were once names that were iconic symbols of strength and American power. In the age of bankruptcies and government takeovers banks are not looking to emphasize their past. New or old, Ally Bank has the rates that beat most of the other banks. What else does a saver need?

Choice Financial is a FDIC-insured bank serving North Dakota, Minnesota, and South Dakota. This month the bank has launched an online savings account for a national audience with a very high introductory APY of 2.76%. The intro-APY only applies for the first 30 days, but don’t get despondent.  Why?  The rates that apply after 30 days are also competitive. And don’t forget that intro-rates are not that bad of a deal. Think of it like this.  A bank could change the rates of their savings account at anytime anyway, so perhaps knowing in advance that you are locked-in at a particular rate for a period of time is a good thing. More details about the Choice Financial RateBuilder Savings Account are below:

Savings Rates:

2.76% APY 30-day introductory rates

1.76% APY for account balances between $5,000 and $24,999

2.01% APY for account balances between $25,000 and $99,999

2.26% APY for account balances over $100,00

Features:

Link to Choice Financial

There is a lot to talk about with the ING Direct Electric Orange checking accounts. Let’s start with the free money. ING Direct is offering a $50 bonus for opening a new Electric Orange checking account. To earn the bonus customers must meet the following criteria:

The Electric Orange checking account is also an interest-bearing checking account. ING Direct pays interest on the account on the following tiered-basis:

Account balances between $0 and $49,999.99 earn 0.25% APY

Account balances between $50,000 and $99,999.99 earn 1.60% APY

Account balances of $100,000 or more earn 1.65% APY

ING Direct is a FDIC-insured bank that has been offering competitive deposit rates on CDs, money market accounts, and checking accounts for over 5 years.  The ING Direct Electric Orange account does not have any required monthly balance requirements and no monthly maintenance fees. And by using online checks and receiving online statements, customers are promoting environmentally-friendly banking. This may be one of best checking account available today. Visit ingdirect.com for more information.

Center Bank is a FDIC-insured bank with branches in both California and the Chicago, Illinois area. It appears that Center Bank is marketing their banking services to Korean-Americans because there exists a Korean-language section of their website. This is nice to see of course and if you know a Korean-speaking person you may mention it to them. Along with being bilingual, Center Bank offers a full suite of online banking services. Of special note are the standard CDs and Flexible CDs which offer competitive rates and terms as listed below:

Standard CD Features:

Terms from 7 days to 5 years available

Minimum balance to open $1,000

Early Withdrawal Penalties:

Over 1 year : 3 month’s simple interest
32 days to 1 year : 1 month’s simple interest
7-31 days or less : whichever is greater of the following
- Accrued interest for half of the term
- All accured interest

Flexible CD Features:

Minimum balance to open is $5,000

You may make additional deposits into your account before the maturity date of the Flexible CD. The minimum amount of any additional deposit is $1,000. The total amount of any additional deposits during a term cannot exceed the initial deposit at account opening or at renewal. There are no limitations on the frequency or timing of additional deposits, except that no additions can be made in the last seven days before maturity. In addition, you may make two penalty-free early withdrawal penalties after the first 7 days you open the CD and before the last 7 days before the maturity date of your Flexible CD.

Flexible CD Rates:

12-month CD 3.40% APY

6-month CD 3.30% APY

Apply online