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Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank -- Ignore unavailable to you. Want to Upgrade?

To: Mike Milde who wrote (502)	5/21/1998 8:48:00 AM
From: AugustWest	Respond to of 2414

>>I don't want them spending money on people that don't have enough on deposit to make NetBank any money. Well, I think it's working. For 3% APY, Accounts need a minimum of $10,000 average balance to avoid this maintenance fee. As of December 31,1997, the average account balance was $12,356, While the average money market account balance was $15,371. Combine this averages out to $13,863.50, or 38% higher than the minimum needed. But working off the # provided in the Bloomberg article, They have 10,000 accounts with $160mm on deposit, that averages out to $16,000 per account. Up 20+% from the 12/31/97 figure, or 60% higher than is necessary to avoid monthly fees. Clearly the trend is towards higher average balances. Yet on the conservative side, they[NTBK] are predicting 20,000 accounts with $225mm on deposit, or an average of only $11,250 per account. Still above the needed funds to avoid the monthly maintenance fees. So as pointed out earlier, one needs $1,350 on balance to make out on the 4%APY checking account. Again, with the average balance more than 10x that or $13,863.5, clearly there aren't many accounts below the $1,350 figure.