Headquarters San Diego Founded 1999 | Founder Gary Lewis Evans Parent organization BofI Federal Bank | |
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Industry Personal Financing and Banking Key people Gregory Garrabrants, President and CEO Website | ||
Bank of Internet USA is an American federally chartered, full-service internet bank and the flagship consumer brand of BofI Federal Bank. Bank of Internet USA is known as the oldest Internet-only bank in the United States and is Federal Deposit Insurance Corporation (FDIC) insured for savings up to $250,000.
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Bank of Internet USA and is headquartered in San Diego, California, and operates exclusively online, with no brick-and-mortar branches. By remaining solely an online institution, Bank of Internet is able to operate at half the cost of their competition. These savings are then passed along to their customers through industry-leading interest rates on deposits and some of the lowest loan rates.
Bank of Internet USA provides consumer banking solutions including checking accounts, savings, money markets, certificates of deposits, IRAs, mortgage lending, refinancing and home equity loans.
Bank of internet usa
Personal Banking
Bank of Internet USA offers a wide range of personal banking services and products. One of its most popular options, Rewards Checking, has received acclaim from GoBankingRates.com, Money Magazine, WalletHub.com and NerdWallet for its high interest rates and no minimum balance requirements.
In 2016, NerdWallet awarded Bank of Internet USA’s personal banking with 3 accolades including Best Checking Account, Best Rewards Checking Account and Best Money Market Account. According to NerdWallet spokesman Devan Goldstein, “We’re pleased to recognize Bank of Internet USA in several categories, as they’ve been at the forefront of online banking for quite a while and haven’t gotten enough credit for it. They’ve stayed true to the branchless banking model: low-overhead operations paired with strong rates and innovative product features across the deposit landscape."
The bank’s personal banking products also feature access to Popmoney, a person-to-person money transfer service; FinanceWorks™, a money management and budgeting tool; Mobile Deposit, a mobile check deposit app; and MyDeposit, a remote deposit solution that allows customers to submit scanned checks from their computers .
Bank of Internet also offers savings options like High Yield Savings, money markets, certificates of deposit (CDs) and individual retirement accounts (IRAs). From 2013 to the end of 2015, Bank of Internet USA saw a 327% growth in the number of savings deposits. Part of that growth may be attributed to Bank of Internet acquiring a portion of H&R Block’s banking business in 2014, including 300,000 individual retirement accounts (IRAs).
Bank of Internet USA’s savings are also a fan favorite because of its ease of access to their funds. In 2016, NerdWallet voted Bank of Internet USA Money Market as Easiest to Access Your Money due to its simplicity to write checks, debit card access and online bill-paying services.
Mortgage
Bank of Internet USA uses an industry-leading model for online home loans that is fast, convenient, and means significant savings passed on to their customers. The bank offers industry- leading low rates on mortgages with award winning customer service on a full suite of customized mortgage options that include purchase loans, refinance loans, conventional loans, FHA loans, VA loans, jumbo loans, home equity loans, and portfolio loans. Bank of Internet is a Zillow® 5-Star Lender.
Bank of Internet USA’s custom built portfolio loans offer loan amounts up to $5MM (and higher on a case-by-case basis) for borrowers with complex financial situations. This innovative program offers, interest only options, 90% financing through cross collateralization, vesting title in entities such as an LLC, trusts, partnerships and sub S corporations and qualification using asset utilization. Financing is also available to Foreign Nationals.
The bank prides itself on their “makes-sense” underwriting approach with localized decision making and simplified origination process through a streamlined online application that allows the bank to close loans quickly, without the headaches of a long drawn-out process. They prioritize purchase closings and stand by this with their fast close-of-escrow guarantee (limitations apply*).
History
Bank of Internet USA was founded in 1999 by Jerry Englert, the founder of Bank of Del Mar, and Gary Lewis Evans, who was president of La Jolla Bank at the time. The bank’s holding company, BofI Holding, Inc., was incorporated in the State of Delaware in July 1999 for the stated purpose of organizing and opening an Internet-based bank. The opening day of the bank was on July 4 for three reasons. One, Mr Englert wanted its customers to realize that although traditionally July 4 is a bank holiday, people would still be able to access the bank due to its online format. Second, he wanted to pay homage to his oldest daughter's birthday. Finally, the theme of the bank "Independence from traditional banking" jived with the holiday's history.
The bank was launched with $14 million in startup capital and was profitable within 14 months. The bank’s thrift charter allowed it, and continues to allow it, to operate within all 50 states. The number of employees running and managing the bank has grown from 35 in 2007 to 534 as of December 31, 2015.
In October 2011, Bank of Internet USA changed its name to BofI Federal Bank. However, BofI Federal Bank continued to use the Bank of Internet USA name for its online consumer direct banking brand. The goal of Bank of Internet USA remains to provide banking services more cost-effectively by eliminating the overhead costs of branches. According to Andrew Micheletti, CFO and VP of BofI Holding, Inc., “We are taking advantage of the Internet for both efficiency in the back office and efficiency in the distribution and delivery of banking products.”