San Diego-based Bank of Internet USA, an Internet only bank, is experiencing record-breaking growth as an alternative to the traditional brick and mortar bank. Another observation Evans made about BofI was that the deposit base, contrary to popular opinion, is not hot money. Those are CDs that move as soon as a higher rate is offered somewhere else. Rather 65% of the accounts are checking and money market, and the rest are CDs. The BofI opened its virtual doors on July 4, 2000, and has since raised more than $20 million in capital, grown to over $300 million in assets without having one loan default, and runs one of the most efficient operations in banking with only 21 employees.
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