From the NetBank Web Site...
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Q: There seem to be several new Internet banks entering the market lately. Would you comment on Net.B@nk and the additional competition?
A: We welcome the competition; in fact, there have been several new names in the Internet banking arena. None, however, have succeeded in matching Net.B@nk's total package.
For example, the newest entry in the market is Membership B@nking with American Express. For the interest checking account, customers earn a 1.98% interest rate and must maintain an average minimum balance of $2,500 in this account or $5,000 in all Membership B@nking accounts. Otherwise, they're charged $7.50 per month in service fees. (As of 7/26/1999.)
In contrast, Net.B@nk's NetValue checking account customers earn 3.00% interest without having to concern themselves with maintaining any kind of a minimum balance. Net.B@nk customers don't pay any monthly service fees with this account and always receive their personalized checks free (not just the first box).
Another example of a newcomer to the Internet banking market is WingspanBank.com. As of 7/26/1999, the interest rate on balances below $1,000 is just 0.5%. In order to earn a 4.5% interest rate, a $10,000 balance is required. (NetB@nk customers earn a rate of 5.00% with no minimum balance required on their NetVantage money market account in addition to the 3.00% NetValue checking interest rate.)
Internet banking is a solid concept that is growing exponentially, so additional competitors are no surprise. Regardless of the competition, we will continue to operate Net.B@nk under our successful business model -- keep overhead costs low and pass the savings on to our customers.
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