In this segment of The Motley Fool's all-financials show Where the Money Is, Fool financial analysts Matt Koppenheffer and David Hanson take a question from a Fool reader on Facebook who writes, "Are online banks a good place for keeping emergency funds? Or is keeping it in a bank savings account or checking account better?"
The guys discuss why entirely online branchless banks like Bank of Internet (NASDAQ: BOFI ) or Capital One 360 (NYSE: COF ) make perfectly safe and sound alternatives to traditional banks and the importance of liquidity when planning an emergency fund.
Why this trend could change banking forever
Do you hate your bank? If you're like most Americans, chances are good that you answered yes to that question. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. For the name and details on this company, click here to access our new special free report.