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Overview / Commentary
4350 La Jolla Village Drive, Suite 140
San Diego, CA 92122

Bank of Internet USA is one of the first banks worldwide to offer banking services, namely deposit accounts and loans, exclusively on the Internet. The bank is registered with the FDIC as a savings and loan association and recently changed its name to Bank of Internet Federal Bank, though still maintaining its banking brand as Bank of Internet USA.

The bank offers straightforward deposit products and mortgage loans for individuals and businesses. Its personal deposit products include two checking accounts, a savings account, a Money Market, and Certificates of Deposit (CDs).

The online bank’s reward checking account offers a competitive rate of interest, free checks, a free debit card, unlimited ATM reimbursements, and free mobile deposit to name a few features. B of I offers several ways to earn different amounts of interest basis points on its reward checking, including direct deposits and debit card purchases. The other checking option is a high interest account that comes with a monthly fee unless a minimum daily balance requirement is met. The high interest checking account offers a great rate of interest and a number of free features that make a convincing case for an Internet-only checking account.

A high-yield savings account is offered and provides a competitive rate of interest with no monthly service fees or minimum balance requirements. The savings account also comes with a free ATM card, free mobile deposit, and free FinanceWorks financial management software. Money Market accounts offer increasing rate thresholds as account balances increase and come with unlimited check writing and an ATM card. Certificates of Deposit (CDs) are available in term lengths ranging from 3 to 60 months and have a minimum initial deposit requirement. B of I also offers a business checking account that has been recognized by in the past.

Bank of Internet USA online banking provides a secure and dynamic platform on which account holders manage their deposit accounts. Various tasks like Bill Pay, mobile deposit, funds transfers, and viewing transaction history can be completed easily through the web-based system. Mobile banking is also available and consists of a mobile-optimized website and mobile banking apps that make account management tasks easy and convenient to complete via smartphone or tablet devices.

Bank of Internet USA was originally established in 2000 and is headquartered in San Diego, California. The bank is a subsidiary of Bank of Internet Federal Bank and operates exclusively online, which allows it to offer some of the best interest rates in the country.

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BofI Federal’s Affinity Group Rate Premium Ends - Rewards Checking Still a Good Deal? - 9/6/2013

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Horrible Experience Getting A Mortgage

RUN AWAY AS FAST AS YOU CAN! Lie to you in a minute. Will not return phone calls. Missed closing dates. BAD BAD BAD.

My Experience

I researched checking accounts that paid the best interest, without alot of hassle (i.e. membership to credit union etc). I chose Bank of Internet because they offered a 1.25% rate with minimal requirements (bill pays, POS debits per month) as well as allowed the highest rate on a balance of up to 150K.  Most banks were capping the balance at 25k or less.

Anyway, I have read the other comments and have to completely disagree with some of the negative ones.  I have had a great experience so far (9 months in) and expect that to continue.  The customer service folks are pleasant and reactive to my questions, the account is easy and hassle free.  But the bottom line for me was the interest rate.  It is the best rate with the highest balance allowed that I've found.

I've actually consolidated all of my money markets and savings to this account as I like my money to be available, not tied up in a CD or other "timed" investment.  But again, the rate is great compared to some of the other big name depositors out there.



CD Renewal

I got sucked in with a favorable 6 month CD rate. As usual, I was told I'd get a notice when the CD was about to renew so I could make a decision. No notice ever came and what started as a good rate became bad/poor. Communications these days is a snap...easy and inexpensive. They aren't doing it. It cost customers money.

Great Interest Rates, Friendly Customer Service, Easy To Start

I was admittedly skeptical about utilizing a bank without physical branches, but I thought I would give them a shot since their interest rates seemed attractive. Signing up was easy and safe. They reimburse for ATM visits, have tons of free online and mobile features, and have been nothing but friendly for me. They even offer free cash back purchase rewards for using your debit card at certain stores. At the end of each month, those points turn into free cash deposits into your account. Never had a bank that offered that without a catch. I highly recommend giving them a try!



Data for Q1 2014

Institution Health


Texas Ratio


The Texas Ratio is an indicator of how much capital a bank has available compared to the total value of loans considered at risk. As of March 31, 2014 Bank of Internet USA had $19.11 million in non-current loans and owned real-estate with $355.12 million in equity and loan loss allowances on hand to cover it. This gives Bank of Internet USA a Texas Ratio of 5.38% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.

Texas Ratio Trend


The Texas Ratio for Bank of Internet USA decreased dramatically from 8.02% as of March 31, 2013 to 5.38% as of March 31, 2014, resulting in a positive change of 32.88%.This indicates that the balance sheet and financial strength for Bank of Internet USA has improved dramatically in recent periods.

Deposit Growth


In the past year, Bank of Internet USA has increased its total deposits by $716.81 million, resulting in 33.81% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Bank of Internet USA has shown is excellent.



Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Bank of Internet USA has $3.85 billion in assets with $355.12 million in equity, resulting in a capitalization level of 9.23%, which is average.

Institution Statistics

FDIC Certificate #35546
Year Established2000
Primary RegulatorOCC
Assets and Liabilities
Assets$3.85 billion
Loans$3.17 billion
Deposits$2.84 billion
Equity Capital$339.13 million
Loan Loss Allowance$15.99 million
Unbacked Noncurrent Loans$19.03 million
Real Estate Owned$86,000
Historic Data - March 2013
Assets$2.96 billion
Equity Capital$249.41 million
Loan Loss Allowance$12.29 million
Unbacked Noncurrent Loans$19.03 million
Real Estate Owned$1.87 million
Profit Margin - Quarterly
Net Interest Margin4.04%
Return on Assets1.66%
Return on Equity18.97%
Interest Income$45.87 million

Always verify rates and promotions with the bank or credit union. We are not Bank of Internet USA, we are a rate comparison website and can not provide official rates or promotions.

Bank of Internet USA Savings Account Rates

0.61%--High Yield Savings

Bank of Internet USA Money Market Rates

0.75%--Money Market Savings

Bank of Internet USA Checking Account Rates

1.25%-$150kRewards Checking - Qualifying
0.71%--High Interest Checking

Bank of Internet USA CD Rates

1.35%$1k-60 Month CD
1.05%$1k-48 Month CD
0.90%$1k-36 Month CD
0.70%$1k-24 Month CD
0.55%$1k-12 Month CD
0.25%$1k-6 Month CD
0.15%$1k-3 Month CD

Bank of Internet USA is an Internet only bank and does not have branch locations. Its headquarters is located at 4350 La Jolla Village Drive, Suite 140 - San Diego, CA 92122