Online bank shuts down

http://biz.yahoo.com/ap/070928/netbank_closure.html?.v=14

Time to get your money out while you can.

Never put more than $100,000 in online (or even bricks and mortar) banks.

http://www.netbank.com/

 

From its name and your topic title, I presume (possibly in error, of course) that they "existed" and operated only on the net. Obviously there's a huge difference between this kind of operation and a "real" bank which offers online services as an extra convenience for its customers.

 

Netbank appears to have been the first online bank in the US. There were no branch offices and they did business strictly via online access. There are a few internet based banks that operate completely via online access and will not let you do business via phone or mail. The lack of access convenience is one reason why some people avoid these types of financial institutions. They pay better rates for your deposits. But you wonder if they could be a "fly by night" operation.