Bank of Internet America

Does anyone use this bank? I’ve used BAC & SAN and i’ve been fairly unsatisfied and was considering BOFI.

For high interest checking? I looked at it, but never got comfortable with its relatively small BS. Went with Cap One 360 checking/savings combo and pretty happy so far.

Ha ha just make sure its under the insurance limit. If you listen to the shorts, that bank won’t exist in a few years!

Everyone I know who uses it likes the experience. I’d imagine its going to be very different. USAA is also a common internet choice.

^^ Why take the risk then?

Because deposits are guaranteed. And if you just want to avoid the potential headache (normally its a seamless weekend transition for a failed bank), it won’t fail in a quarter (typically). So you can always withdraw money if it starts to go down hill. But again that’s not really a risk of loss, just a risk of inconvenience

Ok I’ll rephrase. Why take ANY risk when there are many other online options?

I had a quick look at the financials and i didnt see any reason to believe it wouldnt be a going concern. What do the shorts see that i dont?

Yes, i will certainly stay below the FDIC threshold. FDIC is insolvent though so that may not provide much safety in a true crisis period.

Because it isn’t a risk and supposedly they are awesome bank to work with.

Insolvency may be a strong word, unless you are implying they can’t cover some large banks if they fail. I think the DIF is at 75 billion, which is plenty for bofi.

Anyways, There is lots of suspicions of fraud at BOFI. Lending to mobsters, money laundering, and etc. It’s a stock that has very large moves in response to two seeking alpha shorts, who cover the latest theory.

Even if FDIC insures the deposits, do you want your money to be in some black hole for an unknown duration, while you fill out some forms and go through some unfamiliar claims process?

For me anyway, higher checking or savings account yield is not worth much. I don’t keep a lot of money in cash anyway (last year my 1099-INT had like $20). The convenience of consolidating many services under as few companies as possible far outweighs the incremental interest income.

Anyway, I really think they should have chosen a different name from “Bank of the Internet”. I can barely think of something that sounds more sketchy, unless it’s like “Citizens bank of Nigeria” or something.

very funny someone mentioned this co as a customer instead of as an investment.

really good financials + operations. here’s a bull summary for it.

heres the negative summary for it.

its a financial so i avoid it. but its a top operating bank with solid eps growth in the last 10 years.

how big is your mattress?

I think you’re overestimating the hassle the failure of an insured deposit account creates. Like I said, it’s normally a switch over the weekend and that’s it. Can take your money out of the new bank Monday if their logo offends you

If the financial results are real, it’s a home run long. It’ll be an interesting one to follow

I guess what I am saying is that the process is unfamiliar to customers. Even if it is easy, they would rather not find out. Any perception of lower security matters a lot to bank customers.

The point is that it’s not worth the hassle when there are similar online options with more credible names

Maybe they should have called it: Millennial Internet Bank. We’re highly interested in you!

Perhaps. Like I said, I’ve only had friends use the service so I can’t defend its merits – I use Ally and Capital One 360. What did you do with your bank deposits in the recession? Still seems to me a weird concern, but perhaps I spend my time around too many bank people. I’ve lost touch!

I assume you wouldn’t have the same reservations about borrowing. They are probably among the easiest K1 mortgage providers in the market. This is what leads to their profitability and growth.

Yea, I see what you mean. Elsewhere in bank world, FNBC is BOFI-like and going through some problems. I’d be more worried about a bank in their position, personally.

wyg. you doubled your money?