I don’t have a checking account anymore since what happened with Union Bank of California. Since I ‘ve had troubles with local banks, I think I’ll try an internet only bank this time. After all, the less you deal with them the fewer hassles they can give you, right?? Right?? I searched on Bankrate.com for internet-only banks and the best-looking deal was to open a checking account with Bank of Internet USA. They offer 3.4% interest on a checking account, with a minimum balance of $5000.
I went through their online application process, then on the last screen told me that they could not complete the application because they need more information from me. I got 3 duplicate emails from “No Reply”:
…Prior to proceeding, for your protection, we must validate the information you provided. In order to finalize your application, you will need to provide the following list of items before we are able to continue with the new account process:
- Copy of your current Driver’s License
- Copy of your Social Security Card
- W-9 Form (available on our website under HELP & SUPPORT tab, click on BANK FORMS)
- Most recent Utility Bill (must be original copy) to verify residential address
You may fax the above items to 858-350-0443 or mail to: PO Box 919008, San Diego, CA 92191-9872(all documentation must be clear and legible). If the above information is not received within 10 days of this notice, this account request will be declined.
Sincerely,
Application Review Department
Bank of Internet USA
Seems like steep requirements, but they are an internet bank after all, and cannot meet you in person. The strange thing is, who gets original copies of their utility bills anymore? The same people who would use an internet-only bank? Not likely. Anyway I faxed them all of these things including a copy of my “original” utility bill, which I doctored to make look “original” through fax.
I did not hear from them for several days. There was no contact info in the emails they sent me. Their only contact email on the website was info@bankofinternet.com. I don’t expect that I would get a reply from a generic email address, so I called their 800 number, and after a huge phone tree, got the option for checking the status on a new account application. It said to email them at help@bankofinternet.com. I did. It bounced back undeliverable.
At this point, I imagine that Bank of Internet is 3 guys in a windowless rented office in the back of some industrial complex. The first guy, let’s call him Greg, has a cousin in Nigeria who is sitting in an internet cafe when he says “There’s got to be a better way to make money than this… I know! I have a cousin in America. I’ll have him open a bank for us, and then people will just send us money! We’ll call it ‘Bank of Internet’”!! The second guy, Gary, took some computer classes is community college and offered to build the website. The third guy, Andy, his brother owns the industrial complex. Andy’s Mom recorded the voice mail phone tree.
I sent the following email to info@bankofinternet.com:
Hello,
I have not heard from you since faxing my documentation for my checking account application. I hope you got it. I have some other questions for you too:
1. Why does your voice mail system tell me to email help@bankofinternet.com to check the status of my checking account application? Why can’t someone help me with that on the phone?
2. Why do emails sent to help@bankofinternet.com bounce back as undeliverable?
3. When you send emails, why are they from “No Reply” rather than “Bank of Internet”?
4. Was your fax machine out of paper last Friday?
5. Does the founder of this bank have a cousin in Nigeria?
Thanks,
Heather [Lastname]
I was impressed that they bothered to reply several of days later, but Victor was not exactly helpful:
1. You can talk to customer service for status of an checking account application.
2.If you have questions contact us at customerservice@bankofinternet.com
3. What emails are your refering to?
4. To my knowledge the fax machine was not out of paper
5. I cannot confirm or deny if the founder of the bank has a cousin in Nigeria. That is personal information.
Sincerely,
Victor
It doesn’t seem like Bank of Internet will take my money. I won’t say that it’s a scam, but they are certainly not professional and cannot get their act together if they can’t process a simple new account application.
Dear Heather:
I am the CEO of Bank of Internet.
I am sorry you had a bad experience with our customer service process.
We work hard on our customer service but we are not always perfect and do make mistakes.
Our validation process is very stringent because we are attempting to protect people from identity theft and we are an internet bank.
This process may not have been well executed in your case.
With regard to being a “real” bank, we are a NASDAQ listed (Ticker: BOFI) publically traded $1.3 billion FDIC insured bank with a long operating history.
You can check us out at the FDIC website and pull our SEC filings.
Sorry you had a bad experience.
Hope you are well.
Greg
Comment by Greg Garrabrants — April 7, 2009 @ 2:13 pm
Heather,
You were right.
The CEO’s name is Greg.
Mitch
Comment by Mitch Van Sant — July 15, 2009 @ 11:32 am
I had the same experience as Heather above. Bank of Internet still refused to accept my membership application even after I showed up at their headquarter with my Driver’s License, USA Passport, and a current Utility Bill! Unbelievable!
My incident I think is even more interesting. After being rejected by answering a few identity check questions incorrectly online, I also called their customer service. I spoke to a representative who instructed me to visit their Headquarter Office in San Diego for identity verification since I live in Orange County only if I wanted to move forward with opening a savings account with them. He specifically asked me to bring three forms of IDs, my Driver’s License, US Passport, and a current utility bill. He set up an appointment up for me and instructed me that when I arrive, ask the front desk person to speak to a lady by the name of Debbie Olson. I drove all the way down to San Diego. The entrance was in the back of a building and the front lobby was a size of 10′x10′ cubicle with an ATM room adjacent to it. I saw a lady walking by and I asked to see Debbie Olson. She asked if I brought some form of identification as if she was expecting me. I gave her my passport and Utility Bill. After about 10 minutes of standing in entrance, a lady identified herself as Debbie Olson walked up to me with a stack of paper in her hand. She asked to see my driver’s license as well. She then immediately proceeded with asking personal questions such as my previous addresses and my credit cards history and kept referring back to the stack of paper she had in her hands. I was shocked by this because she asked such personal questions in such a public location. At least bring me into a conference room. We went into the adjacent ATM room after I insisted on having some privacy. Along with her coworker, she read off approximately 10 questions from the stack of paper that may have been my credit report. When did I give this bank permission to inquiry my credit report? Debbie Olson excused herself after asking me approximately 10 questions. She came back about 5 minutes later and said, “I have to ask you one last question”. She asked me to state the home address that I lived in 10 years ago. According to her, I was way off. She shook her head and said, “Sorry but we have to deny your application”. I asked to speak to the President. She said he was aware of the situation and does not want to speak to me. I was so surprised not only by the rejection but mainly by how she handled situation. I was thinking to myself…How do I remember an address that I lived in more than 10 years ago? For a guy with almost a perfect credit score, high income, high savings (unknown to Bank of Internet), I was puzzled for being rejected even with a Government issue identification. Looking back in a way, I am glad I was rejected because I would never want to put my money in a bank like Bank of Internet. Is this a form of identity check or simply an excuse to discriminate?
How much more identification to do you need even after a customer shows up in person with a California issued Driver’s License, a US Government Issued Passport, and a current Utility Bill! If I had told them that I would transfer my $250,000 from Ally.com to Bank of Internet instead of the $1,000 I put on the application, the outcome would have been very different!
Comment by Vince — July 29, 2009 @ 2:27 pm
Just don’t deal with these folks. I’m a “depositor” of $200K+. I’ve spent two weeks opening a savings account. A check has cleared my local bank a week ago. They have my money. Since the money cleared locally, these jokers won’t even verify if I have an account yet. I can’t get a logon setup until they send me something (who knows what) via US mail. This is from Bank of INTERNET??? — I think a more accurate name would be No Tech No Branch Bank. They are totally technically inept. You can open an account and logon at most institutions instantly or at the very latest within 48 hours.
To top it off their phone “support” is beyond rude giving me suggestions such as “check your mail”. When it involves +$200,000 — I AM CHECKING MY MAIL! I’m on the verge of calling the banking commission.
Do yourself a favor – do this one thing and you’ll understand all of these complaints instantly. Call their number and ask a few questions. Call Ally or anyone else and ask a few questions. The DIFFERENCE will be extremely APPARENT! These guys don’t CARE, they’re INEPT, they’re RUDE, and they have no idea how to fix it. Here’s the quote from their “about us” section on the website – what a load of crap:
“Our goal is to provide our clients with an exceptional banking experience in order to foster long-term relationships. We respectfully invite you to open an account with us so that you can experience what sets us apart from our competition.”
Yep, it sets them apart – way apart – they stink.
Comment by Bill — July 31, 2009 @ 7:12 am
About a month or at the most 6 weeks ago B of I topped Fat Wallet with an offer of 2.50% — pretty good these day. A couple of weeks ago I thought, gee, that’s pretty good. While my application was being processed they dropped it to 2.25%. As with the previous posting I have been waiting and waiting for this mail to arrive with instructions for logging on (since I was notified that my Application was approved). Just now I find that they have dropped their rate to 2.02%. I guess that offer of 2.50% was a publicity stunt to attract new money. But was not a serious offer at all. I like Fat Wallet — they just tell it like it is. But some of the rates that get posted or as phony as a three dollar bill — especially B of I’s.
Comment by Ron — August 6, 2009 @ 7:58 am
My experience with BofI is very similar to Ron’s as stated in his review #5 above.
Be-aware that BofI is like a crook trying to use scam to get new fund. The 2.5% rate on 7-20-09 is only good for one week, then it’s going down rapidly. Now it’s down to 1.65% on 8-29-09.
It took a long time for application to be approved and 3 days interest was lost when transfering money from my previous bank into B of I.
I am withdrawing all my money out ASAP. But make sure to leave $1 for 90 days in my account before closing, otherwise BofI will charge me $25 penalty for early closing of account.
Comment by Jack — September 13, 2009 @ 12:16 pm
Thanks for this website. From the looks of things this saved me all kinds of misery as I was set to invest a chunck with bank of internet.. I have enough issues with Mass Mutual Insurance at the moment, I don’t need anymore drama like this. Thanks again.
Comment by Robert — November 9, 2009 @ 8:37 am
I have banked with BOFI since 2003, and I am very happy customer. They reimburse me for any ATM charges, and they pay more interest than most banks on a checking account. Also, there has never been a charge for Bill Pay. I was never happy with the other brick and mortar banks. I consider myself lucky to have found Bank of Internet.
Comment by Andrea — November 13, 2009 @ 4:57 am
I’ve never had any problems with this bank. My application was accepted quickly. My deposits (checks sent by mail) are always quickly deposited. All ATM charges (worldwide) are reversed. ANd I get interest. I only use them for my overseas travels because their ATM card has no “overseas” fees like every other bank I checked into. Maybe I’m just lucky so far…
Comment by John — November 17, 2009 @ 9:59 pm
Well, by now you should be getting the picture on Bank of Internet. I won’t go into details, but suffice it to say that I did not have a good experience with these people. The internet experience was great and I was impressed. Later when I found out about the unpublished rules, I called them on the phone. The woman I spoke with had the worst attitude I have ever experineced with a bank, and I talk to a lot of them. I will be pulling my $100,000 out at maturity.
If CEO Greg Garrabrants is still reading this chain…Get a grip Greg, your operation needs a lot of improvement, and it starts at the top.
Comment by Phil — December 10, 2009 @ 2:01 pm
THANKS EVERYONE! I WAS LOOKING AT THEM, BUT NO MORE. I WILL STICK WITH ALLY BANK. I CHECK BANKRATE.COM DAILY AND THOUGH ALLY IS NOT ON THE VERY TOP FOR INTEREST RATES, THEY ARE UP THERE PRETTY HIGH AND I HAVE HAD NO PROBLEMS.
Comment by Mike — December 16, 2009 @ 11:05 pm