You might have seen the commercial where a guy sitting in a chair uses his iPhone and a Chase Quick Deposit app to take a picture of a check and deposit it via his phone. No trip to the branch required. I saw the commercial the other night and was instantly intrigued. When I worked in the online banking divisions at both Fleet Bank and Bank of America, we always considered check deposits to be one of the barriers to true electronic banking. Most people don't like to snail mail their checks to be deposited. Now, Chase seems to be put a nifty app together that solves that problem.

I decided to give the app a try to see if it really worked. I installed the app on my phone (it's available on the iPhone and Android operating systems), went through the validation process and then followed the instructions to take a picture of the front and back of a check. I pressed submit. Amazingly, it worked fine. A day later the funds were deposited into my account. In sixty seconds I had made a deposit that would have taken me thirty minutes or more to do in the past. Nice.

There are currently some deposit limits with the app. Consumers can only deposit $1,000 per day or $3,000 per weak using the app. Hopefully this limit will increase over time.

This is pretty significant. No doubt other banks will soon have similar apps available. Once they do, there is really no limit to true online banking. With this app, an online banking account, and a debit card, a consumer can open an account from any bank in the country and be able to easily deposit, withdraw, and manage their money. Branches would seem to become far less important for everyday banking, eliminating a major hurdle to online bank adoption.

Interestingly, Chase seems to be pursuing a dual strategy, bulking up its online banking while also indicating it plans to open more than 1,000 new branches over the next three years. I suspect branches will become more focused on investment and lending products while core deposit banking continues to shift online.

Kudos to the online banking folks at Chase.

As banks scramble to make up lost revenue, it’s harder than ever to find bank bonuses and giveaways. However, you can now get a free IPod Touch from KeyBank for opening up a new checking account, but you have to act fast. This offer expires July 22^nd, 2011 and, as expected, there are some requirements you have to meet in order to get the free IPod.

First, you must be a resident of AK, CO, CT, ID, IN, KY, ME, MI, NY, OH, OR, UT, VT, or WA. When you open your account online by July 22^nd, must enter the offer code ONTS0711. Then, you must make at least 20 payments and/or purchases per month for three months after the account is open, and you also must make three direct deposits of $500 or more within that same three months. One month is calculated as 31 calendar days from account opening date (three months equals 93 calendar days from account opening date). Direct deposit transactions are limited to payroll, Social Security, pension, and government benefits. If you close your account within 180 days of account opening, you will be charged a $25 account early closure fee. Accounts that are overdrawn or closed as of 11/4/11 are not eligible for the free iPod.

The eligible checking accounts for this offer include: Key Express (this is the basic banking account in New York), Key Coverage, Key Advantage, Key Privilege, or Key Privilege Select Checking Account. The offer is not available to individuals who have opened a KeyBank checking account in the last 12 months.

In order to avoid monthly service fees for your new KeyBank checking account, there are some additional requirements you have to meet, depending upon the account. The most basic account—Key Express Checking—requires at least $500 in deposits or 5 customer-initiated transactions such as deposits, withdrawals, or transfers. The Key Coverage Checking account automatically charges a $10 monthly service fee, and the Key Advantage, Key Privilege and Key Privilege Select Checking account requires a minimum balance from $10,000 to $100,000, depending on the account. The Key Advantage, Key Privilege and Key Privilege Select Checking are also the only checking accounts that pay interest. The checking accounts vary by account type, balance amount, and geographic area. As an example, an account in Manhattan could pay anywhere from 0.04% - 0.45% APY. All accounts come with free online bill payment, but the Advantage, Privilege and Privilege Select accounts carry more benefits, available for comparison here.

As with all bank promotions, you shouldn’t jump into a new account just to get the free promotional offer. Always make sure that the account fits your banking habits and needs. Just because a bank is offering a free giveaway, it doesn’t necessarily mean it’s the best deal for you. However, if the account does match your banking needs, it’s certainly a nice bonus to receive.

For the best information on checking accounts, click here.

It’s all over the news: banks are slashing APY offers and account maintenance fees are going up. This is, in part, due to the economy and new federal regulations that make it harder for banks to generate revenue in ways to which they are accustomed. If your brick-and-mortar bank doesn’t seem to be offering competitive accounts anymore, you may be tempted to move to an online-only bank. However, before you make the jump to virtual accounts, there are some things to keep in mind.

First and foremost, take a look at your current banking habits. Do you like the ability to go into a physical branch and speak to a teller in person? Do you ever need to take out large cash withdrawals? (Most regular ATMs limit the amount you can withdraw at a time). How do you deposit money? Do you have paper checks to deposit often? Some online banks require you to mail in the check, but others (like USAA) allow you to scan in your check from your home computer and deposit it electronically.

If you decide an online bank is the best solution for one or all of your accounts, the next step is to investigate the bank you’re considering. You should make sure the bank is charted by the Federal Reserve and insured by the FDIC. Keep in mind that the FDIC only insures accounts up to $250,000. If your deposit exceeds that amount, you should spread out your deposit over multiple banks so that your savings are fully insured.

Next, you should see if the online bank has an affiliation with a brick-and-mortar bank or financial entity and check out that bank’s financial rating. If something happens to the online bank and your deposits are FDIC insured, you’ll get your money back, but depending on the situation, it could be a headache.

Then, check and double-check the fees for the account. Will you be charged if you call and speak to a live person (if a live person is available)? How good is their customer service? You may want to call their customer service line (as long as it’s free) and see how long of a wait time you have before your call is answered and how you are treated.

Some experts say that online-only banks will eventually replace most—if not all—brick-and-mortar stores, just like services like Netflix are replacing physical video stores like Blockbuster. However, just because online banks are the wave of the future doesn’t mean it’s necessarily the best banking choice for you today.

• For the best rate information on online banks, click here.
• You may wish to compare this with current brick-and-mortar information on banks near you.
• And, you can research any bank in the USA here.