Online Bank Quiz

In what year was the very first Internet-only bank founded?

1992

1995

1997

Correct Answer

Wrong Answer

Founded in 1995, The First Security Network Bank of Kentucky was the first Internet-only bank on the market.

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On what year did the first brick-and-mortar bank offer online banking services?

1990

1992

1994

Correct Answer

Wrong Answer

Founded in 1994, the Stanford Federal Credit Union, located in the heart of Silicon Valley, was the first banking institution to offer online account access and services like bill pay.

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According to a 2011 poll, how many American adults prefer to do all of their banking online?

32 percent

52 percent

62 percent

Correct Answer

Wrong Answer

Nearly two-thirds of all Americans like online banking -- as well as an impressive 57 percent of adults over 55 years old.

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Ally Bank, one of the largest online banks in America, claims how many members worldwide?

15 million

30 milion

60 million

Correct Answer

Wrong Answer

Ally has 15 million customers, but as a comparison, Bank of America claims 57 million customers worldwide.

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Which of the following is NOT another name for an online bank?

Internet-only bank

Fast bank

Direct bank

Correct Answer

Wrong Answer

Services at online banks ay be fast, but that fact isn't reflected in the name.

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True or false: Online banks are not backed by the FDIC.

true

false

Correct Answer

Wrong Answer

Deposits at most online banks are insured by the FDIC up to the maximum amount: $250,000.

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Which of the following services is NOT available at most online banks?

Direct deposit

Safety deposit box

Wire transfer

Correct Answer

Wrong Answer

Since online banks don't have physical branch locations, safety deposit boxes are out.

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Do online banks typically offer higher or lower interest rates on savings accounts, checking accounts, CDs and money market accounts?

Higher

Lower

The same as traditional banks

Correct Answer

Wrong Answer

Interest rates from online banks are significantly higher than traditional banks.

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As of this writing, a $1 checking account balance at Ally bank earns 0.50 percent interest. What is the minimum balance you need to carry at a conventional bank to even get 0.10 percent?

$100

$1,000

$5,000

Correct Answer

Wrong Answer

That's the current rate for a $5,000 or higher balance on a interest-bearing checking account from Fifth Third Bank.

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The Bank of Internet USA, insured by the FDIC, offers a 1.25 percent interest rate for opening a checking account with a minimum deposit of $100. What is the minimum account balance your need to maintain at Fifth Third Bank, a conventional bank, to get a one percent return?

$10,000

$100,000

$1 million

Correct Answer

Wrong Answer

You've got 100 grand in your account, right?

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True or false: Online banks can offer mortgages.

true

false

Correct Answer

Wrong Answer

ING Direct is one of several online banks that make home loans.

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What is the monthly maintenance fee for carrying less than a $100 balance on an Ally Bank checking account?

$12

$5

$0

Correct Answer

Wrong Answer

Most online banks don't charge maintenance fees, even with low balances. That's not true at most conventional banks.

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Which of the following is NOT an acceptable way to deposit a check with an online bank?

ATM deposit envelope

Upload a scanned image of the check

Mailing in the check

Correct Answer

Wrong Answer

Since most online banks don't have their own ATM machines, ATM deposits won't work.

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True or false: Online banks don't issue debit cards.

true

false

Correct Answer

Wrong Answer

Most online banks offer debit cards with the same features as conventional banks, including cash back.

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Since online banks don't have their own ATMs, how much should customers expect to pay in fees every time they use another bank's ATM?

$3

$5

$0

Correct Answer

Wrong Answer

Most online banks offer no-fee ATM use at any ATM in America. Many banks will reimburse customers for fees charged by other banks.

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Ally Bank was formerly known as which famous financer of auto loans?

Car Loans USA

GMAC

Auto Zone

Correct Answer

Wrong Answer

Ally still finances car loans for major American car manufacturers.

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ING Direct, one of the largest online banks in the world, is owned by the ING Group, based in what country?

Germany

China

The Netherlands

Correct Answer

Wrong Answer

ING Group headquarters are in Amsterdam, but ING Direct is based in Delaware, USA.

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Why can online banks charge fewer fees and offer higher interest rates than conventional banks?

Online banks are operated through offshore computer servers in tax-free zones.

It costs less money to run a bank without any physical branches.

Online banks don't deal in actual dollars, just electronic currency.

Correct Answer

Wrong Answer

Lower overhead costs can be passed on to the consumer through lower fees and higher rates.

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What percentage of worldwide consumers are either "very concerned" or "somewhat concerned" about the security of online banking?

46 percent

68 percent

86 percent

Correct Answer

Wrong Answer

86 percent have some trepidation, but 57 percent said they were "very concerned," according to a global survey by RSA Security.

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Money lost through online banking fraud in the UK was down by what percentage from 2010 to 2011?

12 percent

22 percent

32 percent

Correct Answer

Wrong Answer

Thirty-two percent is significant; U.K. consumers lost the equivalent of $26.2 million dollars due to online banking fraud in the first half of 2011, down considerably from the year before.

FINISH QUIZ

Online Bank Quiz

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