Does anyone have an account with them? They have an apy of 3.5%, but I am nervous about online banking. What do you guys think?

I have a credit card with them. Its nothing too special.

I bank with ING ( which is all online) and with USAA ( again all online) so far so good. its nice because I can't just walk down to the bank and get money out. Its good for a savings account. If they are FDIC insured then your money is safe.