Bank of Internet USA is a fully insured, publicly traded online bank.
It offers a full line of consumer products, including checking and savings accounts, exclusively over the Internet.
It has no bricks-and-mortar branches and fewer than 100 employees working out of a single office in San Diego.
Bank of Internet USA says that by keeping its operating costs down, it can pay customers higher-than-average returns on their savings.
Indeed, it consistently offers some of the best nationally available CD rates. Click here to see Bank of Internet USA’s latest rate sheet.
It uses most of those deposits to make home loans and to finance the purchase of multifamily housing through its Apartment Bank division.
Bank of Internet USA was founded in 1999 by Gary Lewis Evans – one of the true pioneers in online banking.
While he was president of La Jolla Bank in the mid-1990s, Evans created Bank of The Internet. That made his California bank one of the first in the world to offer services over the Internet.
Savings are federally insured up to $250,000 by the Federal Deposit Insurance Corp.
It’s a relatively small bank with about $1.5 billion in total assets (the total value of all its loans, investments, real estate and other holdings) and just over $1 billion in deposits.
(There are about 7,000 commercial banks in the United States, and about $10 billion in assets are needed to rank among the nation’s 100 biggest banks.)
But Bank of Internet USA is solidly profitable, and its return on assets is slightly ahead of the industry average.
That’s one of the reasons it earns a strong four out of five stars from Bankrate’s “Safe & Sound” system, which evaluates banks on such things as asset quality, profitability and liquidity.
Bank of Internet USA also enjoys a top A+ rating from the Better Business Bureau.