Would you use online banks exclusively for CD's?

[Drake3287]

I currently have two large CD's ($100,000.+). One is at a local savings and loan making a whopping .69% and another at an online bank making 1.30%, certainly a little better.

I've found another online bank also offering 1.30% so I'm thinking of closing my local S&L account and putting it in there. My problem is whether I'd be comfortable having all my cash in online banks vs having some in brick and mortar banks that I can easily get to.

Anyone out there using online banks exclusively for savings/CD's and have positive results? I'd still be keeping my local checking account active, also before telling me I have to much cash in CD's, I'm already heavily invested in the market.

[Nutria]

My problem is whether I'd be comfortable having all my cash in online banks vs having some in brick and mortar banks that I can easily get to.

Maybe I've got the best of both worlds, since I have my 1.3% CDs in CapitalOne 360, which is backed up by brick & mortar branches in my town.

Since CapitalOne 360 doesn't have a minimum balances on it's CDs, I'd split that $100K into 12 CDs of $8,333.33. That way you can withdraw less than the full amount if you need it before maturity.

(I won't ask why you haven't dollar cost averaged that money into a mixture of stocks and bonds.)

[feh]

A bank is a bank. I don't know why having a brick & mortar location nearby is important, at least when we're talking about CDs.

All of our CDs are at online banks.

One other comment - when savings accounts provide 1% or something even a little higher, why bother w/ CDs that earn .7 to 1.3%?

[Ima saver]

I would love to use my local banks for my savings and c.d.'s. I have talked to all of them and they just can't beat the rates offered by on line banks. So, I have all of my savings and c.d.'s with online banks now.