| 6 Month CD | 1.45% |
| 1-year CD | 1.90% |
| 2-year CD | 2.12% |
| Money Market Accounts | 1.38% |
| Savings Accounts | 1.64% | Rates provided by MoneyRates.com based on average rates for deposits under $10K. |
For the past couple of years, I’ve maintained this list of high-yield savings accounts by hand. That worked fine for a while, but savings interest rates change often, and I no longer have the time to keep on top of this. I want to spend my time writing about personal finance.
I looked at Bankrate and a couple of other sites that offer automated rate tables. Each of these sites is great, but I actually liked what I saw at MoneyRates. MoneyRates monitors bank rates from over 200 banks and displays top 50 highest rates. I asked them if we could work together, and they agreed, so I’ve replaced my hand-updated list of savings accounts with a table from MoneyRates.
Original Post Below
The rates on this page are current as of 05 April 2009. Rates are low right now, but they’ll rise as the economic crisis eases. For more information about these banks, please see the 1375+ comments that follow this list.
I’ve heard a lot about online high-yield savings accounts, but I’ve never bothered to look into them. It occurred to me today that it’s ridiculous to keep my “web money” in a no-yield checking account at Wells Fargo. As my blog revenue grows, I’m throwing away money by not having my savings someplace that pays.
I did some research. I googled for “high yield savings account” and “ING direct” and “HSBC Direct”. I followed promising links (and ads) from the search results. Here are the offers that I was able to find with minimal digging. All of these accounts are FDIC insured and, unless otherwise noted, can link to other bank accounts (your local credit union, for example).
Note: All of these banks earn 3+ stars via the Safe & Sound rating from Bankrate except as noted.
Based on anecdotes from GRS readers, the first group of banks offer excellent customer service, great rates, and a good user interface:
- Everbank offers a 3.01% 3 month bonus rate plus a 2.00% first year APY up to $50k. They pledge yields within the top 5% of competitive accounts according to the Bankrate.com National IndexTM of leading banks and thrifts.
- HSBC Direct offers 1.55% APY, no fees, web interface. $1 minimum to open. Named “best online savings account” by Kiplinger’s Personal Finance in 2006. Only two stars from Bankrate’s Safe & Sound rating.
- ING Direct offers 1.50% APY, no fees, an automatic savings plan, web interface. No minimum. GRS readers love ING Direct. This is the bank I chose after doing my research.
- E*TRADE Bank offers 1.45% APY, no fees, an automatic savings plan. $1 minimum to open. My cousin loves E*TRADE, and GRS readers seem to be warming to them.
This second group of banks is also worth considering. They tend to have stiffer requirements, more hoops to jump through, or lower customer reviews:
- ShoreBank offers 2.80% APY with no monthly fees and a $1 minimum balance. ShoreBank bills itself as a community development and environmental bank. Only two stars from Bankrate’s Safe & Sound rating.
- GMAC Bank offers 2.25% APY, checks, ATM card. $1 minimum. Fees on balances below $500. GRS readers like GMAC Bank.
- Presidential Online Bank offers 2.25% APY, no fees, ATM access, web interface. $5,000 minimum to open. Rate applies to balances up to $35,000. Any portion above this amount earns 1.50%.
- Savings Square offers 2.10% APY, no fees. $1 minimum to open. Electronic interface only. I’ve had a couple readers tell me setting up an account at Savings Square is a nightmare.
- Provident Direct is currently offering 2.10% APY with no fees and no minimum balance. The account takes $1 to open.
- FNBO Direct offers 1.90% APY, with no monthly fees, no minimum balances, and “no strings”. $1 minimum to open. Named best online savings account by Kiplinger’s Personal Finance magazine, December 2008.
- WT Direct
offers 1.76% APY, no fees. No minimum to open, but your interest rate drops to 0.50% if you don’t have a $10,000 balance after 60 days.
- Emigrant Direct offers 1.65% APY, no fees, web interface. No minimum. GRS readers like Emigrant Direct.
- Capital One offers a variable rate, from 1.01% to 2.01% APY, no fees, free checks and ATM card, an automatic savings plan. $1 minimum to open. Rate is 1.01% on balances below $10,000. This is a money market account.
- Countrywide Bank offers a variable rate, from 1.05% to 1.75% APY. $1,000 minimum to open. Rate is 1.05% on balances below $10,000. Only two stars from Bankrate’s Safe & Sound rating.
A reader sent in a story about online banks last November, but that discussion was specifically about customer service. I’d like to hear from people who use one (or more) of these banks and can tell me more about the features. Which one should I choose and why?
You may also be interested to learn about rewards checking accounts. Also, Canadian readers should check out this article about Canadian high-interest savings accounts.
When I started researching this stuff, I used Bankrate.com to look up MMA Savings Accounts. That way I could see the 100 top yielding accounts at banks (web or otherwise).
From there I went with GMAC Bank since it had (and still does) have a >5% rate on an MMA savings account. I use this to hold my emergency fund money. I can quickly transfer funds from the site to my checking account at my local bank.
Simple to use and good returns while keeping my money very liquid in case I need to get my hands on it quickly with no penalties. And do it all from the web of course. Works great for me!
Oh yeah, and make sure the great number you’re looking at isn’t just an “introductory rate”.
And on the Bankrate.com site you can even see how interest is compounded by each bank, fees, and all that kind of jazz. A super useful tool!
Who cares which one has the highest interest right now? Choose one that consistently has high interest rates and go with them. HSBC and GMAC have both had high interest rates over a long period of time. They might not be the highest but I don’t like switching banks every 3 months chasing a better rate.
i wonder why ING is lower than the rest of the others? getting at least 5% would be nice
maybe i should think about switching
“Has anyone used this? Do other banks offer similar features?”
my account at fidelity has a feature called “full view”, which is actually a branded version of an account aggregation service offered at http://www.yodlee.com. its not quite full featured, but its a great overall account aggregation service. its also available for free, direct from yodlee.
I have bonus referral links for ING if you decide to go with them, $25 bonus on a $250 account opening. Drop me a line if you want one! I have 2 accounts with them and am very happy with the ease of transition, direct deposits, and customer service!
Good point Mark. Since this article mentioned this as a “savings” account, I wouldn’t keep moving my money around just because another institution can give me a 0.85% higher rate than where I’m currently out. It can get confusing and messy doing that frequently.
Funds that I would juggle around would be stuff for middle term investments not my short term or emergency money.
Yeah, I’m not interested in chasing rates. I just want to find an institution that pays consistently well and offers good customer service and ease of use. Anything is better than the 0.4% I’m earning now, right?
I’ve been using ING Direct here in Canada for two years and couldn’t be happier, although I’m jealous of the higher rates you get in the States (ING’s interest rate here is currently 3.5 percent). I wonder if there are any better alternatives to ING in Canada; I’d love to hear about them if they exist. Here in Québec, ING is the only place I know of where you can make money on a savings account; all the regular banks provide such low interest rates and charge such high fees that you are literally better off financially keeping your money under the mattress.
I have had an EverBank checking account for a year now and the customer service is simply amazing. I get 3% interest for checking and they offer a money market account with 5% and 6% into for 3 months with only a $1500 minimum.
Brad, President’s Choice is now in Quebec: http://www.pcfinancial.ca/
4% on balances of at least $1000.01.
Citibank’s e-Savings account has a 4.75% rate, but it requires a Citi checking account. A Citi checking accounts can be a fantastic deal if you live someplace with no Citi branches; they will reimburse ATM surcharges if there is no Citibank in your home county.
I moved my checking and savings to Citi a few years back and I have not paid a single bank fee since. In fact, they were running a promo at the time that paid me for moving my accounts, so I’ve come out $200 ahead on the whole deal. You can also do instant transfers among your accounts, which is handy if you try to keep your checking balance at a bare minimum.
I have an ING account and can shed some light.
I believe the reason why ING currently has a lower rate is because they have been working hard on pushing out a product called Electric Orange. Basically what it is is a checking account with all your usual perks: direct deposit, free online bill pay, and ATM/Debit card. On top of that, they also have an interesting way of sending checks. They give you an online address book so that if you need to send a paper check, you can click who, type in how much, and ING will automatically send that check out for you at no cost. Additionally, they also have something called electronic checks which I won’t get into, but its pretty cool.
In addition to all these great services, Electric Orange also provides 3 different tiers of interest you can earn on your account: 4.00%, 5.05%, and 5.35%. Right now Electric Orange is only available to a select few, but I’m sure once the service is made public ING will be competitive again.
I’ve used HSBC’s online savings account at 5.05% for about six months now for my emergency fund. Account security is second to none, customer service isn’t half bad, and I love watching that interest roll in month after month.
As an added bonus, they’ll give you 6% on all money deposited before 4/30.
Hey Brad (and other Canadians!):
Redflagdeals has a nice article about the options available to us: http://www.redflagdeals.com/deals/main.php/articles/savings1/
It was last updated in September so rates may have changed, but at least it’ll give you an idea of where to look for more information.
I have been using ING Direct for a while and recently opened an Orange checking account as well. The checking account actually pays a higher interest rate than the savings, if your balance is more than $50,000.
I’ve had an HSBC online savings for about 6 months and have no complaints. The account setup is long because they send everything through the mail.
You can tell they’re focused on security, even when it makes things less convenient (which is most of the time because they’re diametrically opposed), but I appreciate that as a customer.
Phone service is helpful once you get a person, but took me 5-15 minutes the few times I’ve used it.
ING will give you $25 bonus if you find a referral link (all over the web); I could even give you one.
We have 3 accounts with them because it’s so easy to set up additional accounts and it’s nice to keep large items were saving for separate (vacation, taxes, computer). The bank transfer can be slow at times (why does it take 3 days to transfer money between banks?); I’m not sure if that’s true at all banks.
I didn’t realize we’re loosing 0.5% by going with them (vs E-trade), with the amount we keep there, it’s probably not worth the hassle of moving though.
Your Countrywide APY is incorrect. It’s 5.4% only if you have a $50,000 minimum balance. For
whoa… messed up comment. I guess it doesn’t like less than symbols
Anyway, for less than $10,000, the APY is only 4%.
Clearly they’re trying to be sneaky, which is a good reason to steer clear of them.
I’ve been using HSBC for about the past year. No complaints, it has really been a nice account. Very security focused as well.
Have you considered a brokerage account? They usually also have money market mutual funds for 5% or better (not FDIC but still your risk is pretty much 0). You can online link to/from your checking accounts and transfer very easily and quickly. I have a Fidelity account and am very happy with it; also like the fact that I have $8 trades (I have a Gold account though; most trades are $10) another one to think about is Ameritrade. They just got a huge writeup today on cust sat and I can’t imagine that they wouldn’t have a high yielding money market mutual fund.
I have accounts with Emigrant and Etrade - both were easy to open and I haven’t had any real trouble with them. Someone did come by my site the other day and leave a comment that in their experience, Etrade’s transfers from the bank account don’t work as promised, resulting in late payments and problems. I haven’t made any transfers with the account other than the opening balance, so I don’t know myself.
Everything I’ve ever heard about ING has been overwhelmingly positive - it’s almost like a cult! I myself am waiting to open an account, once I have $250 to take advantage of the bonus.
oops I meant to say more. Transfers are only 1-2 days between Fidelity and BofA so pretty quickly. The default settlement account, a municipal money market and thus tax free, is 3.5%. Really, good stuff! And you can buy CDs for free and since there’s so much visibility through Fidelity, banks list pretty competitive CDs (I buy CDs 6-12 month term with monthly payouts with annual rates of 5.2% which is great; CDs are FDIC insured).
I am a total interest rate whore, so I have accounts at several of them. Presently nearly all of my cash is in HSBC for the 6% APY promo, although I will move it back to Presidential’s savings account once the promo expires. I highly recommend Presidential’s internet plus checking account as well (4.5% APY on a checking account ain’t bad either). If you don’t want to jump around for rates, both EmigrantDirect and HSBC are good choices. ING was the first in the game but they aren’t staying competitive anymore and just aren’t relevant to a discussion of “high-yield” savings accounts.
Avoid E-Loan like the plague. Their website is buggy and customer service is absolutely horrible. I wouldn’t put my money back there even if they did a promo rate like HSBC.
Great article, I’d like to see similar about the variety of IRA options that are out there.
Thanks Bessam and sjw for the Canadian tips! If ING is able to provide their Electric Orange service in Canada for zero or low fees, I’ll drop my bricks-and-mortar bank immediately. Last year I paid $173 in bank fees (there’s no such thing as free checking in Québec, at least as far as I know) and earned $2.95 in interest from my regular bank. With ING I paid $0.00 in fees and earned $1,230 in interest.
[...] customer to ING Direct since the day I opened an account with them. Since that day, several other online savings accounts offering a higher APY have surfaced. Although the rates are higher elsewhere, I have stuck with ING Direct because I am [...]
I’ve been using HSBC for about 3 months. Overall, the process to set it up took a little while (mostly because they mailed everything separately), but the process only took me a couple minutes. Their website is easy to navigate, the bank transfers only take a few days to go through. In general I have been very happy with them. And its difficult enough that when I put money into it I won’t be pulling money out all the time. Thats why I have a checking account. Its a great way to actually save.
I started with ING, but HSBC is better. I love the EasyView service, which is a “view all online accounts on one page.” I have set up 20 accounts to view there–it totals it all up and sections it out.
I’ve used ING since 2004 and have always been pleased with them. I also just opened up an Electric Orange checking account with them, 4% interest, and I’ve been using it for about a week now. So far so good!
Is Captial One really the only one that offers a Debit Card with the account? I like the idea of how easy it could be to access the account, but I’m not a huge fan of CO. I’ve looked into ING, but I don’t think they have a debit card, anyone know for sure?
I have had and ING Direct savings account for a while now. I have made a nice chunk of change parking my student loans there. I just opened up and Electric Orange checking account, which took about 3 seconds to do since I am already a customer. I like ING because the features of the accounts cover all the bases of what I am looking for in a bank: high interest, no fees or minimums, ease of use, and good customer service. As soon as I graduate and get a job I intend to open a money market with them and take advantage of automatic transfers.
Be warned of the citibank account. I’m not sure how other’s work when tied to your checking but with this account you can only make about 6 transfers out of it to your checking during a billing cycle… online at least.. I was successful completing a transfer at the ATM
For my emergency fund account, I’ve been using Paypal for the last 2 years and it has treated me really well. It’s at 5.05% in a money market account, and although it is not FDIC insured, it’s an easy and reliable way to hold money so it is virtually liquid yet still making interest. Do you guys think I should switch to one of these savings accounts referred to on this post? Don’t worry, I’m never tempted to just buy something impulsively on ebay, which I hear is a problem for some who store money on paypal. Any feedback would be great. Thanks. BTW, J.D., love your site.
One that you left out is PayPal. Most of us already have PayPal accounts, and they offer a Money Market account that is earning 5.05% APY. I don’t keep tons of money there, but it’s nice to have for (minimal) eBay income not to have to worry about it before I transfer it to my bank account.
JD — I have an ING account and also signed up for an Emigrant Direct account although I’m not using it. While opening the account I needed to call Emigrant Direct and had a really bad customer service moment.
On the other hand I really love my ING account — I like the web interface and security features. I’d like the higher interest rate but when I calculated it, at least in the short term there wasn’t a huge difference. So I’ve been procrastinating in looking elsewhere. If I did it would probably be Everbank or HSBC.
I have no interest in the Electric Orange account though.
db
I personally use ING Direct for my savings account. I’ve been using ING since 2001, though I haven’t been very active with it until November of last year (hard to get into savings when you’re in college). I’m one of those people who wants to do EVERYthing online and thinks that everything should be instantaneous.
And while yes, ING’s transactions aren’t what I would consider instantaneous (usually takes 3-4 days for deposits and withdraws to process) it’s pretty good considering it’s a 99% online acocunt. That and I have it linked to my BoA account, so I tend to blame the slowness on BoA
I haven’t heard of this Electric Orange thing they’re doing though, but I’m excited for it to go public! I have a feeling you’d only be able to do direct deposit though… someone needs to invent a way to deposit paper checks online.
I had an E*TRADE account and two ING accounts (US & Canada). E*TRADE customer service is the worst I’ve ever seen. It took me months to establish EFT. Be prepared to pay a fee if you decide to close the account. I have no complaints about ING.
Definitely look at features in addition to rates. I did a lot of research (bankrate.com, as others have mentioned) before choosing GMAC for myself. They have high rates (5.1% currently), fast ACH transfers, a debit card, and *free checking*. The last is the most important for me. It is limited to three checks written per month, but since I rarely write checks, it’s perfect for me, personally. I don’t need a separate checking account at all - everything goes in the MMA with its high interest.
Like a few other fellow readers, I too used bankrate.com and zeroed-in on GMAC. The MMA account currently offers 5.0% APY. Their website is very user-friendly, and the customer service is the best I have encountered anywhere.
It is best to go with a reputed company and one that does not change their rates every few months. Also, it was important for me to open an account with a company that does not indulge in cheap gimmicks to attract customers.
I use Amboy Direct 5.25% APY up to $19,999. 5.35% paid for $20,000 and up. FDIC insured.
Fatwallet.com has a forum thread that follows Savings rates and each has a separate discussion thread on people’s experiences with the company. Should be a useful tool for anyone doing the search:
http://www.fatwallet.com/t/52/437553/
I am currently using GMAC Bank and have been happy with their service. They don’t have the best rate, but transferring money to and from is pretty quick and painless.
I initially signed up with ING for a 5% promotion that they were running and have to say that compared to some banks like Wells Fargo, the interest rates at ING are pretty good considering that there is no minimum balance required. A few things to note with ING:
(1) If you are putting money into an ING account via electronic transfer, it takes several days to link the accounts; basically ING does some small (i.e., less than $1) deposits into the account that you are linking to and you are required to verify those amounts on the ING site before you can transfer funds. The amount of time it takes for these amounts to appear in your linked account is a good indication of how long it takes to transfer money between accounts.
(2) It does take a few days for actual transfers to complete; I’m linked to a Wells Fargo account and it seems to take around 4 business days for transfers.
(3) ING’s security for accounts is pretty extraordinary. A note of caution is to be sure that you are paying attention as you go through the security steps, especially if you are accessing your account(s) through different computers.
(4) Additional savings accounts are very easy to set up (and close) if you have a particular goal you are saving for.
Electric Orange (”EO”) seems to be available to ING customers that have a savings account; I’m pretty sure that if you find a savings account you will be able to sign up for EO. While the EO rates tend to be more aggressive than brick and mortar banks, you really need to get $50K into the account to realize the big 5.05% APR. A few notes about EO:
(1) You can immediately fund an EO account from an ING savings account, which makes it very easy to open an EO account as there is not minimum for EO accounts.
(2) EO accounts, like most traditional bank checking accounts, do provide overdraft protection — I have to imagine that this is formulaic based on the funds in your EO, funds in ING Savings, and probably your credit score.
(3) EO easily shows you your purchasing power, which includes the overdraft protection.
(4) This account is fully paperless — don’t sign up expecting to receive paper checks in the mail. Online bill pay and a cool feature called “electronic checks” (this allows you to send checks via e-mail) are included with every account.
(5) You do receive an EO Mastercard debit card, but unlike traditional banks, there does not appear to be levels (i.e., gold, platinum, etc.) based on the amount of funds in the account, so be aware that there are daily point-of-sale and withdrawal limits.
(6) EO uses a network of ATMs on the AllPoint ATM network to provide fee-free ATMs. In my case, most of the ATMs are in Target stores, making it somewhat inconvenient to do all of my traditional ATM banking.
In summary: I keep some amount of money in ING savings accounts for different purposes and some amount of money in EO to earn a much higher interest rate than most traditional bank checking accounts, but I still maintain accounts at a traditional bank to ensure some amount of immediate cash and to make my ATM banking easier. I have to admit that I have yet to use the EO debit card and do most of my deposits and withdrawals through my traditional bank, interacting with my ING accounts via electronic transfer.
Another HSBC customer chiming in - I have had no problems with my account. I was able to use my account all over Europe with a flat 1 euro/transaction fee for non-network ATMs. The fact that you have access to phone support worldwide is quite good and I like the security features they offer. I’m going to India to work in July for 6 months and will definitely be using HSBC as my primary USD denominated account, as the wire transfer fees (salary while over there will be denominated in INR) are relatively low ($15 a transaction) compared to the local credit union ($35 per transaction).
I want to switch bank accounts, but I am a minor. I could get my parents to make an account for me and then put my money in it, but then I would be taxed at their rate. I have almost $5000 and am really looking for a way to make higher returns on it (as compared to my 1.25 rate). Any tips for minors?
To reiterate KJS, I’ve done some amount of research on how I’d bank if/when I move abroad, and I thought HSBC was probably going to be my best option for handling any residual bill paying in the US.
Steven — couldn’t your parents help you get the online account set up? I confess I really don’t know an answer for you, but I think you and your parents should contact your online bank of choice and see what’s possible.
>Has anyone used this? Do other banks offer similar features?
Money Center from Yodlee is a full aggregation service. At the back-end on a few of these banks, yodlee is the software that is used.
https://moneycenter.yodlee.com
Bank of America also uses Yodlee aggregation service in “My Portfolio”.
I’m late to comment and I’m not going to read all 48 other comments, but my Dad had E-Trade and –hated– them. Customer service is terrible. If your brokerage account dips below $10k (say because the market goes down), they start hitting you with inactivity fees ($40 a quarter).
Ridiculous.
ING is by far the best. You’re only missing out on .25-1% with ING, you get great customer service, and fantastic online security.
OK, I’m really late to this article, but I’ll echo nearly everyone else about ING. I’ve been using them for nearly two years now and have been more than thrilled. The new interface is uber secure, the actual transfering of money is super easy and the options to do auto-deposits on a regular basis is great.
The downside to ING that I’ve found is that it takes 10 full days from the time you transfer money till the time you start earning it.
A co-worker recently tried HSBC because he wanted to make a bit more money than his ING account, he left after three weeks due to the horrible interface and lackluster customer support. ING has some of the best phone support I’ve ever dealt with, even at 2am!
My mortgage is through CountryWide and I recently had a bad taste from a poor experience with their phone support, it was resolved in a timely manor and I am once again liking the company. I have recently received the offers with my bill for their new high interest accounts but don’t like the idea of having to keep $10k in them - I’d like to keep my money a little more liquid right now.
Fighting over .5% for me isn’t worth it right now, I’ll take the slightly lower rate and great customer service ING has been providing me with thus far.
Great discussion! This article came at the exact time that I’m looking for an online bank. I’m considering Countrywide… they’ve got the rates (and they currently have my mortgage). Besides being relative newcomers, I wonder if there are any other negatives about them? I’m not concerned about the tiered interest levels, but consistent rates and any fees could definitely be a factor.
I have been using HSBC for the higher rate. I have not been impressed with the speed of the balance transfer.
For example on Tuesday evening 10pm, I went to HSBC site and transferred $900 from my credit union.
Wednesday I get an email from HSBC that says I have requested a tranfer.
Thursday it is taken from my credit union account, Friday to Sunday nothing.
Monday I get an email that says the transfer is complete and it should show up in my HSBC account within the next 24 hours.
So on Tuesday, a full week later, the transfer shows. Not planning on staying with HSBC, looks like there are many others that are faster and easier.
Not strictly a savings account, but if you have PayPal, you can enable the money you put there to be placed in a money-market account. Not FDIC insured, but it does pay 5.05% now. There’s no fee, so if you have any money in a PayPal account, it shouldn’t hurt, right?
Washington Mutual isn’t on your list? Lots of branches in Portland, an ATM in every Fred Meyer, and 5% APY on a savings account. I live only a few blocks away from a branch and it’s been great. “Real human” Teller access, ATM deposits, ATM withdrawals, yada yada. Link to their Free Checking with free checks (and soon money orders), billpay, and so on, and it’s a very good deal.
Let me know if you have any questions.
I kept my ING Orange Savings account since I figured out that i needed to pile up some money for Taxes.
The phone support is amasing, provided you can find the Phone number!
In anycase, I am a big fan of stability. I transfer almost 1K into the account every month, and I just love watching the interest dollars earn more and more.
Also, ING Direct tells you whats going on in your account, ie Deposits, or widthdrawals, they even tell you when the interest rate has been increased! I like getting those emails.
ING Direct has been working out well with my linked BofA account. I just wonder how easy is it for me to link my Scottrade acct to my Orange Savings so I can move money in an out of the market.
Currently Scottrade pays like a bank on unused funds available for trading. However they do offer CD’s and MoneyMarket.
Just my $0.02
-Israel
Washington Mutual isn’t on your list?
They didn’t come up in the Google results. There’s no question: my methodology here is lame. And I forgot completely about Bankrate, which is silly since I visit that site for other reasons a couple times a week.
Thanks for reminding me of WaMu, Jonathan…
Wow, I’ve always been a huge fan of ING but I didn’t know it had as many strong supporters as it does here. To join the crowd: it also takes me 3-4 days to put money into ING from BoA, but only takes 1-2 days to withdraw money from ING to BoA.
HSBC also seems to be a fan favorite here too. I’ve honestly looked into it, but I guess I just can’t get use to their web interface. I personally like ING’s better.
Well JD, from the sound of the votes it seems you really have two strong contenders: ING and HSBC.
Every pfblogger should bookmark bankdeals.blogspot.com and check it regularly. Banking Guy is my hero.
Anyway, as I’ve said before, when I look for an online savings account, I want:
Ease of beneficiary nomination for transfer on death. This is my first priority, because I don’t want these assets probated. On this front, Emigrant and E-Loan are by far the best. You can do it online as you open the account. E-Trade lets you mail a form in. ING doesn’t offer this option anywhere on the site, although I suppose you could email them and check.
Low minimums. If I have an emergency, I don’t want to pay fees to pull my funds. Emigrant, ING, E-Trade and many others do well here. You have a list of some of those that don’t.
Decent rates. There is no reason I can’t get at least 5% in the current prime rate environment, and I look for companies that have done this consistently. Again, Emigrant, HSCB and others do well.
Ease of direct deposit. ING offers a form. Emigrant and E-Trade both offer routing numbers. I’m sure most others do, but it’s worth checking the website to see if they make it obvious. (I’m lucky in that my HR system lets me request routing for anything I want.)
Electronic delivery of monthly and tax statements. I don’t like waiting for my 1099s. This is one reason I left VirtualBank. Again, ING, Emigrant, and E-Trade have all done well for me here.
The upshot is I went with one account at Emigrant and one at E-Trade. If I had to pick, I’d go with Emigrant. After the rollout hiccup last year, I have not had one single problem, and the site is a dream to use.
I clicked through from the RSS hoping somebody would say more about the E-Trade QuickTransfer. Oh well.
I have been using HSBC for a month or so, but don’t have anything to compare it to. In this case, I guess it is fine.
I use use E*TRADE for both my brokerage account and my checking account. I agree with others the support is definitely lackluster. I am seriously considering switching to ING’s Electric Orange checking. I am concerned about the lack of physical checks. Anyone have any thoughts on this?
As far as the QuickTransfer feature. I don’t find it to be anything special. You are basically allowed to setup accounts (either other E*TRADE or outside banks) which you can transfer money to and from. That’s it. I don’t find it to be very “Quick” for being called QuickTransfer. It takes the normal 2 to 3 days of a regular electronic transfer if you’re going to or from an outside bank. Obviously transfers within E*TRADE are instantaneous.
moved from ING to GMAC about 18 months ago ( based on bankrate.com info). GMAC is faster and the rate is higher. Very happy with the switch. I use the big local bank ( Chase ) for checking/ATM because they have waaaay more free atm’s here ( Chicago ) than anyone else.
If you are hands off Money Market Accounts are great. I recently opened one at AmTrustDirect. But if you hare more hands on Treasury Bills are the way to go. Because they are actually exempt from State & Local taxes their Tax EAPY (Tax Equivalent Yield) can actually be 6%+.
TreasuryDirect.gov
A bunch of other blogs have tons of info on how to open an account, and calculating the EAPY (it is different if you itemize and changes depending on state tax rates, etc.)
EmigrantDirect’s rate (5.05) isn’t the highest, but their transfer feature allows you to set an exact date on which transfered money appears in the target account, rather than the generic 2-3 days. Very useful for timing bills and other transactions.
Fidelity also has a great money market that pays over 5%. They also feature free banking services, so if you need to transfer between Fidelity and your bank, it’s an easy online process.
Fidelity also does offer a one stop shop for all of your banking info. You can establish and download all of your bank info for all your banks and accounts into one screen. (including any SkyMile and Credit card points accounts)
Dustin, I think “outbound” QuickTransfers are pretty average, but “inbound” transfers (from your external checking account, for example) actually credit on the day of the request. I don’t particularly care if the money isn’t wired directly as long as I’m paid interest on the assumption that it is.
HSBC took an unacceptably long time to approve our account. We finally had to go into a local branch; when we went to access the account online the next day, we couldn’t get into it. We called their customer service line and they said they had no record of our deposit or our account. Luckily, we started with just $10, but if they can’t keep track of that I won’t trust them with any more of our cash.
I have an E*Trade Complete Savings account, which I opened largely because I keep almost all of my banking/brokerage accounts there. Overall, I like the features and offerings, and I really like the idea of keeping everything in one spot.
There are a couple of things I don’t like. First, the time it takes to fund a new account is excessive. Even if you transfer money from an existing E*Trade account, it takes something like 7 business days for the transfer to take place.
Also, the banking side of E*Trade went through a core software conversion recently, and I lost the ability to automatically update through MSMoney. The brokerage accounts work fine. They don’t seem to have designs on fixing this.
I’ve been with ING for about a year now and have been quite happy with them, although I must admit that it’s tempting to chase the slightly higher interest rates of the other online banks.
I’ve been thinking about dropping the brick and mortar bank altogether and opening up an Electric Orange account to pay the bills. Does anyone here do all of their banking using only online banks?
In the meantime, are there any fees to do transfers between ING and your linked bank (BoA, in my case)? It’s something I haven’t yet tried…
Add me to the list of PayPal fans. Besides the 5.05% APR, you can also get a PayPal debit card which pays 1% cash back on purchases. The money is instantly refunded back into your account. Plus withdrawing cash and transferring funds to your bank account or any other PayPal user is easy. Also, if you link your bank account and you charge more than you have in your account, PayPal will draw the balance from your checking account automatically, up to a certain amount.
Been using ING for a year. Love it, although I havnt tried others. I do have a etrade account so i might take advantage of rhtier 5 %.
After seeing all their fees/etc though I really dont like etrade. I’m slowly switching over to scottrade.
So basically my setup is
BOA - small amount of money for rent/etc
ING - storage for money
Scottrade - broker/roth IRA
@Don
There are no fees associated for transferring money between ING and BoA.
I “virtually” do all my banking online using the Electric Orange account. Money is directly deposited there, and I use that account to pay all my bills too. I still have my ING linked to BoA simply because I travel a lot and I’m always able to find a BoA ATM machine to pull out any needed cash.
I have both ING and virtualbank. VB seems to follow the fed closer and they have worked well for me.
Another ING fan here; I’ve been using them for almost a year and am really pleased. The website is secure, thoughtfully laid-out and extremely easy to use. I recently shifted the bulk of my savings cash over to HSBC to take advantage of the 6% deal they’re running, but when that deal ends I’ll send the cash back to ING. HSBC’s website is a wreck.
I am in the same position as J.D. - tired of the low interest rate at Wells Fargo and looking for an online bank with a good rate. And now, I need to decide between HSBC and ING - has anyone had any particularly good/bad experiences with either bank? I can’t decide!!
i use emigrant direct. they used to guarantee the highest rate in the country until HSBC put the squeeze on ‘em. but i like the fact that there’s no minimum to open or maintain the account. you earn 5.05% regardless of how much you have in there.
emigrant is also pretty good about matching rates too. in the year or so i’ve had the account, emigrant has pretty much kept pace with hsbc.
i also have a checking account with wachovia. transfers between the two are pretty seamless. i just schedule the transfer (either direction) with emigrant.
in the last few months, it’s taken no more than a day to transfer money between the accounts. but in the past, i’ve had to wait three or four days.
I’ve been using ING Direct for almost 6 months.
Because I’m just getting started out, the “no minimums” policies at ING Direct are good for me. I’ve finally got my cushion savings account filled up, and now I’m starting to put some into my emergency fund. (as a side note, I opened the emergency fund with $25, and earned 8 cents interest in the first month).
Plus, ING Direct has other products like a free checking account that gives you 4% APY with free billpay; no-minimum CD’s (I’ve got two for $50, and one for $100; much less than the minimums required at HSBC), and an IRA with index funds ($25 min, + $25/mo; cheaper than most IRA’s you’ll find).
Those are just the ones I use. And they’re helping me get things under control. The no minimum part is the best.
You mentioned the interfaces… the ING Direct interface is clean, and easy to use for most people. Personally, I find it a little too simplistic, but I’m a professional computer nerd.
On the interface in every interest-bearing account, you can get a count of how much interest you’ve accumulated so far this month, and so far this year. This type of feedback has helped me immensely! The way my mind works, I know I’d pull money out if I wasn’t watching it grow right before my eyes each time I log in.
They also do something pretty convenient that my other online banking websites don’t do. On the OFX (MS Money) export, they take advantage of the fact that OFX supports multiple accounts in one export file. Thus, even though I’ve got 6 accounts with them, I only download one file to reconcile in GnuCash.
And I know the ING Direct website works with all alternative operating systems.
All four of my accounts (interest-bearing checking, Traditional IRA, Roth IRA, and taxable brokerage, which I use as ’savings’) are with E*Trade and I couldn’t be happier. By having all of my accounts with E*Trade, I am well-above the minimums to avoid monthly fees (including ATM fees) even though any individual account may drop below- it’s the sum total they look at. I have one dashboard for all my accounts at a glance.
I’ve never had any problems with transfers, since they’re now all to other E*Trade accounts. There are no limits to transfers and they can be scheduled or one-time, nearly instantaneous.
Any downside to one-stop-shopping (such as the amount of time it takes to get all your accounts transfered) isn’t going to be limited to E*Trade, it’s going to be the same no matter where you go.
If you qualify, USAA has some of the best rates around.
You all should check out GE Money as well. They offer tiered APYs, with the highest being 5.05%
http://www.gemoney.com/personal/savings/index.html
Very simple to set up and manage! No minimum and you can set up automatic transfers.
Anybody use Capital One? I stumbled across their web site one day and see that they have a very competitive money market offering. That surprised me, as I don’t think I had seen it advertised before.
It’s at 5.0% APY now, which is not bad. BUT if you’re a Costco member you can open a Capital One MM account and earn 5.2% APY. That’s close to as good as you’ll find these days, and it’s a well-known, reputable company.
So I’m curious to see if anyone has an account there.
Another CITI customer chiming in. I used ING in the past and it was great, but Citi allows you to withdraw from your online MMA at the branch same day. So you have access to your MMA at a branch and transfers to checking accounts are available same day, unlike with ING or other “traditional online banks” (if such a thing exists for a service that is only ~two years old). Moved to Citi a few months ago, really couldn’t be happier. Much more user friendly than ING or EmigrantDirect. My money is available at all times.
I haven’t seen anyone mention risk. I have an account with ING. I’m leary of HSBC, GMAC, Countrywide and others that might be mired in the subprime (and now Alt-A) mortgage debacle - as in they made loans to people who couldn’t pay back. Sure if it’s an FDIC insured bank you’re OK up to $100K, but there’s still the hassle involved in getting your money back - if there was trouble you can bet that there would be some delays getting your money from the FDIC. Something to keep in mind.
I have been using Emigrant Direct for 6 months and have been very pleased so far. They employ more security than just a username and password which I like. I should have done this sooner. My brick bank is paying .10% (that is a tenth of a percent) on my savings so I moved my money over to Emigrant at 5.00% and have been very happy since. Stay away from Etrade! I had a brokerage account there and they were penalizing me since I did not have the minimum balance and never let me know. Pretty crooked if you ask me. I introduced my parents to Emigrant and the 2 initial deposits they do for security was more money than they earned on the $10,000 in the brick bank from the previous month! Were talking about $1.50 but just shows you how the brick banks are fleecing everyone right now.
I have to put in a plug for Emigrant Direct. I have had accounts with them for almost a year and a half now. Transferring money back and forth is easy and usually happens the next business day. No fees. Like the security. Like that I actually have interest income to speak of for a change. If my regular bank would pay good interest rates, they would have more of my money. For now, thanks Emigrant.
A great site for tracking the best rates on savings accounts, cds, money markets, etc is Best Cash Cow.
Enjoy.
[...] read more | digg story [...]
USAA has the most AMAZING customer service. Business Week rated it #1 in customer service above (2)Four Seasons, (3)Cadillac, (4)Nordstroms, and (5)Wegmans. Their service is so good we have our checking, savings, credit cards, mortgage, home & auto insurance with them. Any time we have tried somewhere else, we get so pissed off with the customer service we end up right back with USAA. We rarely have to wait when calling them, their phone numbers are obvious (and you’re encouraged to use them), and their reps across the board are EXTREMELY patient and nice. Just recently my husband called to change our insurance from renters to homeowners, and they (without prompting) let him know that we qualified for new discounts on our already active auto insurance.
For savings accounts, you get 4.85% above $10k. For the checking they reimburse you up to $10 a month for ATM fees, and don’t charge any themselves. So, if we use a BofA ATM, eg, we get the $2.50 back that BofA charges. That means we can use any ATM anywhere for free. They also have the Deposit@Home program where you scan a check in, and deposit it electronically. It’s amazing. Their brokerage accounts have trades that are $5.95 or $11.95 depending on the amount in your account.
The website makes it seem like you need to either be in the military or have a spouse/parent that is/was (my case), however we have friends that opened banking accounts without this requirement, but they can’t get the insurance. So it might be worth a call. (1-800-531-2265)
Honestly, I can’t rave enough about them!
Great comments. One option that doesn’t advertise heavily is GE Interest Plus - http://geinterestplus.com/interestplus/
Amount APY
Less than $15k 4.91
$15k - $49,999 5.17
$50k and more 5.43
It’s not FDIC insured as its invested in unsecured debt from GE Capital (read prospectus), but I’ve had it for many years and it’s consistently above other options I’ve researched (excluding promo offers). There is a similar type account with GMAC (6% top rate as I recall), but I like GE’s financial strength much more, so not willing to switch.
You can do direct deposits and link with your checking account for ACH transfers…so maximize the interest earned until it’s time to pay bills.
Like some of the other posters, I don’t like to switch accounts all the time…
I don’t think anyone mentioned this, but HSBC has ATM access too. As an added incentive for California customers, you can withdraw money from any Wells Fargo ATM without any fees. The exchange rate from withdrawing from an HSBC ATM in a foreign country is better than any rate I can get from any currency exchange service.
Electric Orange, ING’s checking account USED TO be only available to a select few. It’s not that way anymore. I’ve had the debit card for about a month now, and I find the service to be great– Love instantly being able to transfer money from my ING savings to withdrawable Electric Orange. Plus it uses “cardtronics” ATMs, so that means no $1.95 surcharge on ATMs in every CVS, Supermarket, Convenience Store, and basically any other store around. There’s a free ATM locater on the website thats very useful.
[...] Which Online High-Yield Savings Account is Best? ? Get Rich Slowly (tags: blog finance finances management money saving investment savings budget interest) [...]
I have had an ING account now for over a year and find it is o.k. except for beneficiary or co-owner. I recently opened a Capital One for the better rate and that I can have my daughter as a co-owner; they also provide for beneficiaries. Not much experience yet. ING has worked best in transferring money when I know the date of transfer ahead of time, just plug it in and on that date money is there.
I can vouch for ING Direct.
Very easy to use. No nonsense transaction capabilities. Money in, money out, money into CDs, etc.
I’m sure the other banks are fine too.
[...] a post over at Get Rich Slowly with each bank and their respective rates. The article, titled “Which Online High-Yield Savings Account is Best?”, made the front page of [...]
Most of the other points have been covered already so I’ll just mention that I like Emigrant over HSBC and ING purely because I can log in with a username that I selected.
Both HSBC and ING identify you with an assigned long customer number that I had to look up every time I wanted to log in.
Great article! I have been looking to move from my bank’s MMA to something better, there are some great options…
Maybe you said it had to be FDIC insured, as you mentioned the ones originally listed all were, but I stand by Ford’s Interest Advantage account.
- Need $1000.
- Free transfer in/out from another bank acct.
- Free checks and unlimited check writing above $250.
- No fees.
Current rates as of Mar 19th:
Invested InterestRate CompoundYield
Under $15,000 5.75% 5.90%
$15,000 to $50,000 5.90% 6.06%
Over $50,000 6.05% 6.22%
ING FTW
Pc Financial is the best bank online in Canada for a savings account. 4% interest in the savings account on balances over $1000 no fees on anything, and you can use any CIBC atm in canada for free. I really don’t understand why everyone doesnt use it.
[...] High-Yield Savings Account is Best? Filed under: Uncategorized — recar @ 4:45 am Which Online High-Yield Savings Account is Best? online savings rates over 5%[business & finance] [news] [world & business] [...]
+1 for HSBC — I’ve been using them for a little over a year now after switching from ING Direct. HSBC consistently has higher rates than ING, which was my reason for switching.
HSBC does not currently do the “long customer number” thing mentioned above. I log in with a user name, although they do the new image/cookie thing along with 2 passwords. Security is a good thing though…
I am interested in looking around at better rates for larger amounts of $$$.
You missed American Express - I have their “One” card. You get 1% of your spending on the card deposited in a savings account at 5% and they give you 50 bucks when you make your first purchase. No minimum balance.
jpsfranks,
You can change your HSBC login username. I know this for a fact because I changed mine.
Pretty unhappy with E*Trade myself. I just switched to them from BOFA as BOFA is a giant outsourcer and e*trade will pay your ATM fees.
I’ve used a lot of online banking, AmSouth, USBank, BOFA, ING Direct and Scottrade.
So far E*Trade has been ATROCIOUS about holding onto my money for days and days without letting me have access to it. Transferring money out of a BOFA account into an E*Trade account took 3 business days - usually moving money into BOFA the funds are available the same day. I could understand this but then moving money from an E*Trade Checking account into an E*Trade IRA account takes _6_ business days? They claim they aren’t earning interest on my money during this 6 day period but I can’t think of ANY legitimate reason for this in this day and age.
NO Other online banking system has been so terribly slow with giving me access to my own money.
I really recommend against E*Trade, i’m looking for another solution.
Steve,
I used to have an Amex one account, the problem is that it costs $35/year and transferring money to and from the account took me 3-4 business days. It is a cool concept, but poorly executed in my opinion.
PayPal is my high-yield savings account. Like others have said 5.05% APY; get a ATM debit card for your account, and get 1% cash-back which means you’re really earning between 5.05% - 6.05% on the account with no minimum and interest compounded monthly, with high liquidity
Don’t use E*Trade. I have had an account with them for awhile and recently their customer service has been horrible and they refuse to do simple things like give you certain reports on your account activity. Also they charge you $5 for some printed reports.
I switched both my bank accounts to HSBC last summer, with my savings going to HSBC Direct. I’ve been very happy with it so far - consistently high interest rates, satisfactory customer service, instant transfers between my checking and savings accounts, and no fees.
I think you are all off. Use GMAC Demand Notes. All you need to own is one share of GM and a balance over $1k. The current rate is 5.75%
http://www.demandnotes.com/main.htm
Try it out. Its much better!
Hello,
I have an iGobanking.com account, they have a good rate and they are very easy to setup and use; my fear is that nobody had said anything about it on this page; does anyone else use them?
~Edgar
I have Amtrust, ING, and Citi direct. I use all 3 just to push around for best rate and i love all of them. They are all linked together so i can move money and the good thing is there is a real Citi bank in my town so i can make deposits easily too and just move it.
Great customer service for all 3, even though i haven’t had to deal with them much.
I’ve had an ING account for 2 years and it is exceptionally easy to transfer money from and into. It takes about 2 days to get money from the savings to my local checking branch, but that doesn’t bother me. I opened the account for the $25, then opened both my daughter and husband an account and we ended up making around $80 in all.
Recently I switched to an ETRADE account since my balance was growing and the interest rate was higher than ING. I’m very happy with ETRADE and will most likely stick with it, unless ING rates become higher.
Which Online High-Yeild Savings Account Is Best?…
There’s been a raging “online savings account” debate going on at Get Rich Slowly, resulting in a valuable discussion in the comments. Consumerist doesn’t favor any one account over the other (we just think you should save), but would like……
[...] accounts when you could be earning 5% or more with someone like ING Direct and HSBC Direct. J.D. at Get Rich Slowly has a great post listing many of the alternative online banks offering high-yield savings [...]
I have had an ING Direct account for about 2 years. Great product. You kind of forget about the account too so you’re less likely to take the money and spend it.
You made it to Lifehacker.com again, well done.
I’ve seen several comments here regarding people who want to keep their savings money liquid, PayPal’s Money Market Fund is currently at 5.05% has no load and no minimum and is available to most anyone that is verified through Paypal.com. I’ve been in it for over a year and tend to keep as much in PayPal as I do in my bank savings with nearly double the return.
I had thought I’d posted a response. Oh well. Sorry if this is a double-post.
I have high-yield FDIC insured savings accounts with HSBC Direct and Emigrant Direct.
Emigrant Direct has a straightforward website, which allows you to see how much interest you’ve earned so far that month (which is compounded daily but not added to the account until the end of the month), what pending transfers are up, and is my favorite financial services website I’ve used so far, for those and other reasons. The interest rate isn’t the top, but it’s high up in the lists. Since I don’t really have a lot of money to throw around I also appreciate that having a savings account with this bank allows me to open CD accounts for 6 months or longer with $1,000 or more, all at the same APY.
Transfers out appear in the other account’s listing the day that the transfer was scheduled for. They have to be scheduled at least 2 business days in advance, though, I think. Transfers in do not become “available” funds immediately (just like how transfers out make the funds that are to be transfered unavailable, though presumably still interest-bearing, a few days before the transfer out), but they are used in the total amount in the account as soon as the date of the transfer, unlike the HSBC policy of not including the money until several days after the date of the transfer. I haven’t done the math to make sure that the interest is actually calculated on the unavailable money, so I might be wrong on that, though it’s certainly what the account page makes it look like. I highly recommend Emigrant Direct.
HSBC takes a long time for transfers to clear compared to Emigrant. The reason I have an account with them is that I like having an ATM card for it, since it is my emergency account. The problem is that there are no HSBC ATMs in my area, so I’d most likely have to forfeit some of my savings in the form of fees if I were to ever use it. Logging in is sort of confusing to do, and requires use of the mouse to enter in a second password-type thing, which I find obnoxious. I have casually been looking for a differen savings account with ATM access, even if they also don’t have any ATMs local to me, since their website is such a pain to use and the transfers take so long to clear. I would not recommend HSBC Direct unless you need the ATM access and your location is different than mine or your willingness to pay ATM fees is better than mine.
I’ve casually looked at the Citibank account since there are a lot of 7-Elevens with Citibank ATMS in my area, but the difference in interest rates and my belief that there might be an early-closing fee with HSBC have prevented me from doing too deep an investigation.
I have two of these accounts; Capital One (because it has check writing) and iGoBanking.com (pays a higher interest rate). iGoBanking.com is where the majority of my emergency fund is, but enough to get me through any real short term is in Capital One just because it’s easier for me to get it out.
I’ve been using ING for two years now with zero problems. I’m very pleased with the amount of security they have implemented. One thing mentioned about another OLB: there is a limit of 6 transactions per statement cycle. This was the case when I signed up; don’t know if this still the case.
I’m surprised there are so many mentions of PayPal. With PayPal’s history of abyssmal customer service, transaction mistakes, customer-hostile policies and ‘guilty until proven innocent (and good luck trying…)’ SOP, I wouldn’t invest money in them even if I owned the company. I refuse to give PayPal my checking account info to become ‘verified’, and will only transact with them using a credit card in order to have buyer protection. paypalsucks.com, paypalwarning.com, aboutpaypal.org tell some of the stories. I have a friend who experienced PayPal issues where they attempted to transfer money out of his account without warning, and not at his request. The transfer failed. PayPal hit him with a fee, then froze his account. The bank hit him with a fee. PayPal refused to admit to any facet of the problem or refund any of the fees. It was an ugly mess and in the end he dropped PayPal, leaving a small amount of money in his account that they refused to unfreeze.
Perhaps PayPal’s savings are a different ‘division’, but I would avoid putting any funds at risk with them.
All U.S. savings accounts have a restriction of six withdrawals per statement cycle (month). It’s not just “online” banks.
We’ve been very satisfied ING customers for several years. Last week I did an inbound transfer Thurs nite that went through on Friday, hoping to see this promptness continue.
It’s good to see the variety of alternatives today. We declined the EO offer because the terms seemed overly unbalanced with regard to things like errors and disputes. I’d echo Pat’s sentiments @82 above about exposure to mortgage lenders.
I’d be particularly interested to know if any accounts offer ATM deposit, as I have for some years wanted to be able to deposit checks to remote banks, and going to my local bank branch and then doing an online transfer seems more complicated than it should need to be, particularly if the check needs to clear before funds are available at my local bank.
[...] at GetRichSlowly.org there is a good thread on other high-yield accounts. The consensus appears to be ING Direct, HSBC, Emmigrant Direct, or [...]
I use HSBC for my savings. The website looks like it is from the 90s but all the functions are there. The security login is irritating, but at least they try. Quick transfers in and out, you can setup automatic transfers easily. Not the best interface, but it works and I am satisfied.
I would not recommend E-Trade for banking. When it comes to transfering money into the account, They hold your money for what seems like weeks! Guarenteed at least one week. They are notorious for puting funds on HOLD for at least 8 Business days ( for me at least ). The money wires into the Etrade within 3 days, but you have no access to the funds for quite sometime afterwards. Transfering money out seems to be ok.
Gahhh! For the last two days I tried to sign up with Emigrant Direct.
Attempt #1: I filled out the form but got distracted for several minutes and the application session time expired. I had to retype the app.
Attempt #2: They couldn’t verify my address since it was listed as a business address and they wouldn’t accept another address. I had to give them permission to decline my application and try again the next day.
Attempt #3: I couldn’t apply again because my userid was already taken (the one I made yesterday). I wanted to reuse that ID and called not wanting duplicate info on their server and they insisted that I use a new ID.
Attempt #4: New ID time. I filled out the info a fourth time using a different user ID. Upon form completion I get a message that I can not apply for an account because my previous app was declined (from me in attempt #2). I call again and they gave me an 800 number to call on Monday so I could try again. Screw that.
I’ll try HSBC now.
I just came over here from Digg.com, sweet blog, I personally love ING Direct because of their integrated online checking account.
Considering how the value of the US Dollar continues to plummet, I want to know where I can get a savings account in *euros*. I should have put all my dollar savings into euros long ago. But the dollar still has a way to fall, probably until after the next election.
As both an ING and HSBC direct customer, I have been happy with both. I got the HSBC account after holding the ING account for a year because I live in NY and wanted the ATM access. The website is not user friendly and takes FOREVER to transfer. I just got the ING card, and i am seriously loving it.
Unless you have a large amount (10k plus) in one of these accounts, 50 basis points is not going to make an appreciable difference in your takings.
Risk. Paying higher savings rates attracts money to these banks and increases their reserves. My question is, why do they feel they need to increase their reserves?
I bank with Citigroup, and they also have exposure to housing industry losses which doesn’t exactly help me sleep at night.
I’ve heard that ING has exposure from Europe, and GMAC/RESMAE lost a lot of money last year also. So far (?) I’ve seen only HSBC reporting losses and writeoffs (over 10 Billion dollars - so far.)
These impacts are still accelerating, and a major tree teetering in the forest isn’t impossible. These banks “create” a lot of money out of thin air by their lending. Other investors are highly leveraged as well. If things get rather worse the interest rates may get even better
but so would the risk.
I have been using an Emigrant Direct account for the past 6 months. I’m very happy with it.
What I really like about it is that I was able to make 3 different accounts under one user id (I believe you can make up to 5). That way I have one account for my insurance savings, one for my travel savings, and one for my emergency savings.
Another great feature which other people have already mentioned is the automatic transfers. So every two weeks (payday), all three accounts get an “allowance” that goes directly into them. No fuss. And the coolest part is that you can put limits on these transfers (i.e., stop the transfer at this date, or stop the transfer when it reaches this amount).
I have yet to take money out of the account and put it back into my bank account, but I heard it takes a few days. No problem for me since I can use my credit card til it transfers over. One thing I wish Emigrant would do is have the actual names of my accounts on the site instead of the last 4 digits of the account, but oh well. Emigrant’s great.
Comparison of online savings accounts…
The money savvy Get Rich Slowly blog has written up a quick and dirty comparison article on eleven different online savings accounts, from Countrywide to ING Direct. Some of these rates are so-so, some of them are pretty dang……
[...] a detailed discussion on this topic, please read the comments on the getrichslowly blog, it contains some great reviews from their [...]
–> Brad
In Quebec, in addition to PC Financial and ING Direct, HSBC has an online savings account. If you go on their website it’s HSBC Direct but I have one from before that offered a better rate…it was 4.0% with it. Not sure if anything changed, but it was for people who already had a normal checking account with them.
I’ve held an INGDirect accounts for 2+ years and never had a problem. I love being able to log in and get tax info during tax season, and not having to wait around for a 1099.
I’m a new HSBCDirect customer and so far so good. I wanted it primarily for access to its international network, as I enjoy traveling overseas a lot and the ATM card will come in handy. Setting up an account took 24 hours, and I haven’t noticed a major lag time between transfers yet but I’ve only done 2.
I don’t mind the more complicated log-in feature as this means they’re paying attention to security.
[...] of the banks on his list offer convenience features, such [...]
[...] GetRichSlowly.org posted a list of online savings accounts with detailsso you can figure out which may be best for you. I have been a fan of online savings accounts for something now. Mostly due to the high APY and liquidity. [...]
I’ve been using ING for years and am thoroughly satisfied with features, although I am disappointed with their lagging interest rate. They used to remain at the top, but seem to have decided not to compete there anymore.
To the minor that requested where he/she could invest, I found that ING is the only site that will accept such an account. I set up accounts for each of my five kids with very little effort through the 800 number. I have envelopes in our kitchen where they each insert their babysitting, chores, etc. earnings. Once a week or so, I just collect and pocket their earnings and then do an equivalent transfer out of my checking account into their respective accounts. And the kids love logging in with me to see how much interest they are earning.
Wow! 135 comments thats nice but how come no one mentioned iGoBanking.com, currently its 5.30% APY with no minimum, no fees. Currently am with ING but this one seems tempting. BTW its savings account.
I love Emigrant. They consistently have high rates. Capital one is great because you get checks and debit card…perfect for those who feel like they want instant access. Captial one even called when I made a large transaction to make sure it was me doing it.
I have a fairly large-sized cash balance with Etrade (used to be with Brownco). After reading this I thought I’d try opening a savings account with them. This is what I keep getting:
“An error has occurred while processing your application. Please try again or print out an application. Otherwise, please return to the E*TRADE Bank home page.”
Obviously they aren’t interested in making this expedient, and why would they when they’ve been paying me less than 1% on cash balances. I think I’ll continue to put my cash in the short term bond ETF (NYSE; SHY) or Treasury Bills until Vanguard introduces their short term bond ETF in the near future.
I have been using Bank of Internet for several months now. While their savings rate is not as high as others, they offer very good rates on their checking accounts, especially for “Boomers” like me. I have an ATM card and a monthly allowance for ATM fees which I have never exceeded. They offer excellent phone and web support and overdraft protection. I have also used ING direct for several years without a problem. (ING also gave me a very competitive mortgage offer recently, over the phone in about 20 minutes.) Sure beats my experience with Wells Fargo - no interest on checking, less than 1% on savings!
I’m thinking about moving to online checking. I already have an online savings account. If I move my checking to an online provider, how would I cash in an occasional paper savings bond? Is it safe to mail paper bonds? Can paper bonds be converted to the relatively new electronic bonds?
[...] some money to do? Now there have been many, many different reviews of ING Direct, Emigrant, and HSBC Direct. I did a lot of research and finally I’ve decided what I’m going to [...]
Can you believe it? I actually went through all of 142 comments on this post!!!
I am a University student right now, but I wanted to start out saving some money right away, so that I have a decent footing once I graduate.
I learned a lot reading through the post and the comments. From what I’ve read so far, I think the best option for me would be HSBC or ING. I am a little more inclined towards ING right now. Even though the ING rates (in Canada) are not at the top, but I am looking for stability and ease of use right now.
So thanks to everyone!
[...] Which online high-yield savings account is the best? [...]
I have HSBC and has been working great for me. Sure their website isn’t the best of the best, as J.D. said, it’s a mess. But it’s a mess because they are working on it to be better for the consumer.
I would also like to mention that HSBC does in fact have an automatic savings plan. If you choose “Bank to Bank Transfers”, you can select a “Recurring Transfer” to be withdrawn from an external bank account/or even another HSBC account, at no charge to you. I currently have an automatic plan set up to deposit $100 every month and building a nice piece of change from monthly interest.
I would love to have another high interest savings account that pays more than 5.05%APY, but it seems that the other higher ones want a set minimum. May be good for some, but I use my savings for an emergency fund and free cash stash if I sell my investments. HSBC’s $1 minimum works great for me and recommend it.
Did you know that ING requires you to be a US citizen or permanent resident to open an account? Can someone please let me know if resident aliens can open an account at ING if they have an SSN number?
One nice thing about ING is the fact that you can refer a friend and earn $10 for every person who opens an account with a min. of $250. The friend will also earn an instant $25 to their own account. 4.5% may seem to be a lower interest rate than the others, however an instant $10 or $25 here and there yeilds a higher overall rate.
[...] surface, compounding is innocuous — even boring. “So what if my money earns 5.40% in a high-yield savings account?” you might ask. “What does it matter if it averages 10% annual growth in a mutual [...]
I still love ING Direct.. Their customer service department answers the phone on the first ring and transfers are incredibly easy. Email me at jew98 (at) hampshire.edu if you’d like a referral code to take advantage of the $25 bonus.
I’ve had Capital One (5%) & ING (4.50%) for two years and the rates are decent. I just opened an account a month ago with HSBC (6%) this temporary until April 30. Then it’s back to 5.05%. Captial One takes 1-2 to transfer money. ING has gotten better now with 1-2 days for transfer. I have HSBC debit card as an emergency account. All three banks seems to working out great for me. If I had to choose one as my favorite, I would be ING!!! all the way.
[...] idea, and a good comparison of rates and bonuses for different online savings accounts can be found here, courtesy of Get Rich Slowly. (The comments section has a lot of useful information as [...]
I am looking for just a savings account to save money in for future use (like retirement), if somebody could refer me to a good website for just a savings account and making a good interest rate i would be extrememly thankful. Thank You.
Thanks to everyone for all the responses! I’m trying to decide between ING and HSBC direct as far as where to open a saving account.
I’m going with ING after much consideration. I’ll start setting it up tonight or tomorrow.
Email me at soonerhail09@ou.edu to get the referral code so we can both get some bonus money.
I’m going with ING after much consideration. I’ll start setting it up tonight or tomorrow.
Email me at soonerhail09@ou.edu to get the referral code so we can both get some bonus money.
I use HSBC Direct and am quite happy with it. When deciding which savings account to go with you should definitely compile a list of wants and compare them to what people are saying about the particular Banks. For example, HSBC bank to bank transfers are slow, but since this is my savings account I could honestly care less.
This is my emergency/general savings account so three or four days transfer time isn’t an issue for me. If you have to dip into your emergency account frequently, or may possibly need the money quickly, HSBC Direct may not be your best option.
As mentioned the site is a little clunky but the security is nice. All in all I’m very happy with HSBC.
Currently I have 5 online banking accounts : 1)CITIBANK, 2)PAYPAL, 3) CAPITAL 1, 4)AMTRUST, AND 5)BANKUNITED. I am still a bit nervous about having ALL my savings in just ONE account. I figure IF some hacker gets into ONE account. I still have the majority of my savings. I love all my accounts EXCEPT BANKUNITED. All but BANKUNITED allows for adding and withdrawal of funds online ( ACH ). For this reason alone, even though they pay HIGH interest, I am highly considering closing my account with them. You never know when the day might come when you need immediately access to ALL your funds. Other than this, I am totally satifised with ONLINE BANKING. Thanks for ALL for sharing their comments. Have a great day
I disagree that HSBC’s website is “a busy mess.” I have two savings accounts with HSBC and I’ve had nothing but great experiences with them - I’ve never had any trouble using their website either. Everything is straight-forward and easy to use. Also, this article doesn’t mention that HSBC has a no-fee ATM card as well. A local convenience store chain in my area has no-fee ATMs and when I make withdraws from the HSBC account at these machines, I don’t pay any fee, whatsoever.
I’ve used WTDirect ever since I pulled my money from Citi (I was sick of them limiting how much I could transfer out). WTDirect lets you transfer as much as you want, and has 5.26% rate.
I use HSBC and have no complaints and impressed with the high yield. I pulled all my savings from a number of different accounts and placed them all here. It’s an easy web site to move money in and out of other bank accounts and only take 3 business days for each transaction. Accounts are FDIC protected for $100,000 per account. When most savings accounts get less than 1% yield, how can one refuse up 5-6%. You have to be a complete idiot to pass it up.
I forgot to mentions with HSBC. There is no minimum and no term limits. You can move money in and out at any time with no penalties and still collect the high yield. I have held this account for over 1 year now. High marks for HSBC.
Jeff mentioned wanting to put his money into a non-US Dollar account.
Check out Everbank.
I am seriously considering dropping $10G into a Icelanic CD at 12%. Its FDIC insured if you go through Everbank. The only drawback is the currency exchange from US dollarrs to Iceland’s Kronas’. You could lose or make a little on the currency exchange. Also the CD has only a 3 month maturity date, which tells me the return rate can be volitile. You can also give instructions to everbank, to automatically roll it over with returns, or send the returns by check.
Hi Everyone!
Don’t forget that HSBC has a promo going on until April 30 for all new money - it’s at 6%. I just moved more money into the account. Still when the rate goes down to 5.05%, that’s better than most high yield internet banks are offering. I’m loving it!
I was very pleased when I found http://www.iGOBanking.com online from a yahoo search . . they offer 5.30% with No Minimums!
Hope this helps
I think after reading this I’m definitely going to get a capital one account. Looks like a really good deal there.
I was at wells fargo then I moved to ING then to Emigrant Direct. Now moving back to ING electric Orange and countrywide. There is no fidelity in this business. I think I will be using more and more ING direct to get rid of Wells Fargo.
[...] paying off my debt as fast as I can, what else can I be doing to maximize my money? The numerous online savings accounts readily available are right up my alley, but I do not want to open 15 of them and constantly be [...]
no one has mentioned gmac. They have a competitive rate 5.30 and are great for ach’s in and out.$500 min to avoid monthly fee.
You can write a few checks, about 3-4 on the account per month.
I used to use HSBC for a savings account, but I got sick of their stupid little “keyboard” password: I not only had to enter a login and password, I then had to type a seperate password using mouse clicks on a keyboard. I complained, but they wouldn’t change it, so I transferred my money to Capital One and closed the old account. The interest rate is about the same, right now, I’m getting 4.75%, but that varies month to month. It is still higher than Bank of America where I have both checking and savings. BOA pays me only .20%
I still keep one month’s expenses in the BOA account, simply so I can transfer by computer, telephone or ATM should an emergency arise. The high rate account is use for a larger emergency fund (which, sad to say, did have to get dipped into, but is normally higher) which should contain at least another 2-3 months of expenses.
I do also use this account for another purpose: I have Capital One transfer a fixed amount every two weeks to save for my IRA. I do this because Capital One will transfer it for free and BOA wants a fee to transfer outside their bank. This means my IRA contributions earn a little money until I am ready to transfer a large chunk to my IRA and invest it when market conditions are most favorable to me. And, since I have to pay taxes on that interest anyway, that compound interest helps me make my IRA contribution with less of my takehome pay.
The best one is not always the highest return. In my case, it was one that didn’t make me do stupid mouse clicks, that still pays a high rate, and offers free transfers both in and out.
FNBO Direct now offers 6% until September. Rock on.
Eloan is offering a savings acct at 5.25% interest rate ($5,000) minium and 5.36% on 6 month CD ($10,000 minium).
Whoa! I am heading over to FNBO Direct for that deal!
I have used ING for years with no problems. However, I just freed up enough money from investments to save that I will be putting that in Emigrant Direct. The consensus seems to be that the service is similar and as good or better with around .5% better yield.
People keep mentioning GMAC, but that is not an FDIC insured savings, it’s an MMA with no more insurance than junk bonds. If General Motors goes bankrupt, or otherwise decides not to pay you back, your money is gone. From what I see in the news, I’m not trusting my money to an american auto company.
also RE: Savings in foreign currencies. It sounds attractive, but do your research. My understanding is that there are special tax problems with doing that, including a lot of extra scrutiny from the IRS.
I’ve had ING direct since 2005 and last week I opened the Electric Orange Checking; received the debit card in about 3 days. I think this service will work out for me at 4%. My local bank pays nothing in interest; I like to have my money working for me at all times. I also have HSBC at 5.05% with debit card.
Before you open up a high interest savings account you should first consider how and when the interest is calculated.
Question: Achieva Financial offers 4.10% interest compounded and paid monthly. Steinbach Credit Union offers 4.20% interest paid once annually. Which savings account is the better deal?
Answer: Achieva Financial since every month you will earn interest which then carries forward to the next month. Essentially you are earning interest on top of your interest!!! Monthly pay outs are way better than once annually!!!
Question: Achieva Financial offers 4.10% interest compounded and paid monthly. Steinbach Credit Union offers 4.20% interest paid once annually. Which savings account is the better deal?
Answer: Achieva Financial.
Wrong.
(1 + 0.041/12)^12 = 1.041779
So, 4.10% simple interest compounded monthly gives an APY of 4.18%. Steinbach at 4.20% APY is the better deal.
No need to do the maths though as (in the US and the UK at least, I don’t know about other countries) banks must show an APY, which takes compounding into account.
Essentially you are earning interest on top of your interest!!! Monthly pay outs are way better than once annually!!!
Compounding is good, but for low-ish rates there’s not a great deal of difference between monthly and annual compounding. But to get the true comparison, just compare the quoted APYs.
I use HSBC as they gave 6.00 APY for some time. After that I believe all others are the same. Unfortunately though HSBC does not allow transfer of money from one HSBC account (mine) to another (My friend) unless we both are listed on each other’s account. This mean a flat NO.
I know wellsfargo allows so what’s the problem. Any one has any such experience with HSBC or any other bank?
- Jayant
I have used both INGDirect and HSBC, although HSBC offers a higher rate, the account also comes with too many issues. I prefer IngDirect, we have never had any issues resetting passwords or when calling for help. HSBC customer service line always takes way too long and if you call on a weekend, forget it. IngDirect has been the best option for us.
I finally decided to go with an ING savings account. So far I’ve had it only for a month, but I already love it so much. Don’t know how I was getting by without it. When the first month of interests rolled in, I was blown away. Really. I guess anyone would when they jump from a 0.05% to 3.5%. I love to see my money grow!
Right now, ING Canada has a $13 referral promotion going on. That is, you get a $13 bonus when you refer a friend as does your friend. Awesome deal for both!
If anyone would like a referral (ING Canada), I’d be happy to give you one. This way we both make some money! Please email me at sinpra (at) yahoo (dot) ca
Capital One has seductive introductory rates, but be careful - the checks they offer are also very tempting (and God help you if someone gets their hands on the mounds they will mail to you). Watch out for those transfer rates - as high as 3% per transaction. It is far too tempting for those who have trouble keeping money in their pockets. I used mine early on (student) when they used to offer no-transfer fee and low rates over the life of the debt. It worked well for sums that were on higher interest accounts and because I paid on time (if you don’t your rate goes up exponentially). Despite being an excellent customer with the company for years they did not offer better rates - further they do not report your records accurately for credit rating scores. This can place you in a real bind if you are only relying on them. Further, customer service and Capital One are an oxymoron. I had to play hard ball with them just to get decent service on a number of occasions. I canceled my card today - but it took over an hour to do so. They initially refused my request. I had to go through three reps and two supervisors until they deigned to cancel my card. There was no reasonable explanation for this run around. I can only guess they believe that they can get away with shoddy service and perhaps keep customers by refusing to allow them to cancel. Capital One does not take customer service seriously - only money talks with these folks and I say walk and shop around for others who are care about their customers.
[...] Open an online savings account. Most online accounts offer a 4% interest rate. That’s much better than the 1% you get at your current bank. See me for an ING referal. [...]
Beware of EXTREMELY slow ACH transfers at HSBC Direct!!! They may have a good rate, but when they keep your money in limbo for about 4 days for each transfer, that does eat into the rate. The money is withdrawn from the source bank 3-4 days before it is deposited at HSBC online savings account. Anyone know of a bank with faster ACH transfer?
Lee Anne, thank you for your post! I have been reading, looking for someone who has had experience banking with Capital One. I am currently looking to start a high-yield savings account, and was seriously considering them. After reading your post, I think that I will be going with ING instead of Capital One.
I’ve just completed a lot of research about where to put my emergency fund and I decided that GMACBank is the clear winner. Their rates over the past year are in stide with HSBC Direct, they offer 3 checks a month for free, and they offer a Debit card (6 monthly transactions for free). Also, it appears that their ACH transfer system is as fast as anyone else (1-2 Days). Yes it is part of GM, but it is FDIC insured and recieves 5 stars at Bankrate.com for finacial strength. Here is a blogpost I found very helpful (check out the rest of the site for other great information) - http://bankdeals.blogspot.com/2006/04/opening-gmac-bank-money-market-savings.html
See my posts on AmTrust, FNBO and Rateedge in the “Banking” section of mymoneyblog.com
I’ve had HSBC since they started offering it. It’s great. It’s convienent. A solid company that I trust with my money!!
I love ING! Rates around 4.5% APY, and has a nice referral program if you have alot of friends, deposit more than $250 and get a free $25
anyone interested in an account, email me at iwantcable@comcast.net for your free $25
I recently signed up with fnbodirect. Their rate is the best at the moment - 6% through Sept 28 - and their sign up process is quick and easy, nothing to mail in. Their website is sleek and simple. The only problem I have with them is that they use the same ACH transfer system as HSBC, which means sloooooooow transfers. They also charge for ATM usage and don’t reimburse other banks’ fees, so if you need money in a hurry, you have to go to the ATM and pay to withdraw your cash, which sucks. ING, Emigrant, Amboy, GMAC and others all have free rapid transfer systems, so you can access your funds fast.
Don’t get me wrong - right now FNBO is the best on the market, but after their promo period, I may switch. I’d rather have a slightly lower rate with fast access than a higher rate with a 3-4 business day wait on ACH. Not only are you losing interest on the funds, but you also have to plan for all emergencies in advance.
[...] of GetRichSlowly.org also has a great list of online savings accounts with high yield interests. Online savings accounts are the trend because many of these savings [...]
I have a account with ING paying 4.5 and love it started a new no check electric orange checking that pays 4.0 percent on the balance and has free bill pay service. I love this but I also started a account with Emmigrant Bank at 5.05 percent. Now I’m looking at First National Bank of Oaklahoma with online savings no minimum rate of 6.0 % until 9/30/07. Their site is http://www.fnbodirect.com
^Oaklahoma, lol. First National Bank of Omaha has been good so far, it took a few days to get signed up and to get the ACH up and going, but very easy. Hopefully, I won’t need any emergency transfers that take 3-4 days. They do offer an atm card w/ $2.50 fee per withdrawal for those bad emergencies.
[...] savings account. Nowadays that doesn’t pay a lot, but it keeps the money safe. By using an online high-yield savings account, you could earn a greater return on your money while it waits to be used. In a Get Rich Slowly [...]
While ING pays the lowest rate for the banks listed, I really like that there’s no minimum for opening a CD. Each payday, I open a CD with the money left over after paying my bills. Great and easy way to keep your money at hand.
I also like how ING allows multiple “sub” accounts. I have about 20 “sub” accounts, for insurance, taxes, entertainment, even a Christmas account. I have money automatically transferred from my low interest Citibank checking account into each of these every payday. A GREAT way to spread large payments across the entire year. I’m not sure if other online banks allow this convenience.
I had moved most of my money (except for a few dollars)to HSBC a year a go.
And I’m on the move again to find better interest rate. Don’t get me wrong HSBC was great but their interest isn’t at the top any more.
Is there any good reliable saving bank which give more than 6%?
[...] of monthly commitment and putting someone else in charge kind of scared me. Then, I ran across this article from the Get Rich Slowly blog about high interest online savings accounts, and I was blown [...]
[...] sabotage your efforts by making it easy to spend the money on non-essentials. Consider opening a high-yield savings account at an online bank. When an emergency arises, you can easily transfer the money to your regular checking account. [...]
I still say HSBC bites for their stupid “mouse clicks” for a second password that I can’t enter with a keyboard or from my bank’s portfolio option that tracks all my accounts from one place (HSBC does not work in this).
I also think that .0025 more interest for the harrassment is unacceptable. I am happy with a bank that currently pays 4.75% interest with “no hassles”. Keep it going, Capital One!!!
HSBC, I told you more than once, it is not worth $0.02 to deal with your stupid “mouse click keyboard” for a second password…..give it up!!! It’s why I dropped your lousy firm, and hope others do also!!!!
Hello there!
I heard a lot about this online savings account, in particular the attractive interest rate. But I have a problem here, I am from Singapore. The average interest rate for savings account in my home country is less than 1%! Real pathetic…that did not deter me from building up an emergency fund though. Can someone enlighten me…for I believe that such online saving accounts are not available outside U.S?
I have had HSBC for 2 years and have not problems. The keyboard password is not a problem for and it only takes me 3 seconds to enter it. It is well worth the extra interest it pays out. For those that are lazy then move on to the cheaper rates. One account is easy to manage for me. If I have and need extra accounts to track my money then I would get one. I keep a spreadsheet if I need to itemize everything. I enjoy keeping track on my spreadsheet that can be set up the way I want to see it…not the way the bank sets them up. Lighten up lazy people with the lack of knowledge that don’t know how to use a mouse on HSBC. It’s called computer skills 101.
HSBC is number one in my book.at a very reasonable payout in interest.
Does anyone know anything about HNBO direct. They are offering a 6.00 apy on a savings account.
correction FNBO.
I agree w/ Mike R. I’m an HSBC’er and haven’t had any problems with them. Plus now that they’ve launched a checking acct w/ bill pay, etc. earning 2.5% (i think), I’ll stay w/ them for a while…mouse clicks and all.
I think that to get the best deal you need to be an “interest rate whore”. That means you periodically check which online savings account give the best deal and move your money there. I usually leave my “old” account open with $1 balance….just in case they decide to start paying the most competitive rate again.
Right now, I have the bulk of my savings in FNBO Direct. They are paying 6% until 9/28. They are slow on transfers though. If their interest no longer becomes competitive, I’ll switch to somewhere else.
I also have accounts with HSBC and Emigrant Direct.
I would say to avoid HSBC if you can help it. They are very slow and bureaucratic about everything they do. Their customer service sucks. They keep you waiting on the line forever and you often get a person from India.
I recently opened up a savings account with ING.The entire sign-up process was very simple. I am very happy and intend to stay with ING as long as possible. though there apy could be more competative, i would recommend ING to anyone.
Is it possible to open such an account based in another country? Just idly wondering if the soaring strength of e.g. the CAD vs. the ever-falling USD would make a Canadian account potentially even more rewarding.
You missed one: UFB Direct
http://www.ufbdirect.com
I’m a graduate student who will be receiving a lump sum in loan money (roughly 12K each semester after tuition) and would like to get a return on it. i’ve been looking into savings accounts because i’ll need to use the money for monthly rent, books, etc. meeting minimum opening balances wouldn’t be a problem, but as i’ll be taking money out on a regular basis, the fees for going below a balance would hit me pretty hard.
i’d also need something with easy transfers between bank.accounts if family wanted to deposit money into one of my accounts (assuming the institution i go with doesn’t have branches in both manhattan and cleveland) with as little monthly and transaction fees as possible.
any suggestions for someone in my spot?
there are several websites, such as bankrate,emoney,moneyrate. i recently signed up with ing, their apy isn’t the best, but the setup,and customer service is so good. i’m happy with ing.
ING is the one I’ll take in your case because they pay you 4.5% on your savings and will give you a electric orange account which is a checking account with a free debit mastercard and on top of that pay you 4.0% on the balance in the electric orange account with minimuns. They have free bill pay with the account sent electronic or a paper check. I’m with ING and I have been satisfied with their service.
I have been using ETrade bank since they bought Telebank in the 90s. I have brokerage accounts there too. All told I have 7 accounts with ETrade and I have had no problems.
QuickTransfer is very easy and convenient if you have money at other institutions like I used to. I like being able to quickly open a new account via an online form (even joint accounts) whenever I want to start a CD, or segment my money.
I love that they pay all your ATM fees so you can go to any bank anywhere.
It is true that by default they do not allow you to withdraw recent transfers from outside banks, but you do earn interest from the moment the money is wired in. If you order the digital security fob this transfer hold is also waived so there is a way around it.
I have had no serious problems with their customer service in the 10 years I’ve been with them.
Do you have direct deposit into your ETrade account, Dave? If so, can you access that money right away or does it take awhile also? I have a brokerage and savings account with them already, like them a lot, and am considering switching my checking over.
has anyone used Millennium Bank. They have MMA >5% as well as CD at 8%
cynthia, check out http://www.mymoneyblog.com, scroll down to millennium bank.
I have E-Trade bank accounts. Direct deposits (ACH pushes) are available the same day. I don’t know what some of these people are talking about with long holds at E-Trade. If you have them do an ACH pull, the funds earn interest immediately, but are subject to a three-day hold.
Account opening deposits are subject to a long hold (12 business days maybe?) but that is the only exception.
I didn’t know that they’d remove the 3-day holds if I got a SecurID; I may have to do that.
Frank, thanks for the information. I checked out the web site–my gut instinct was right.
I’ve used ING for a few years and one thing that I really like is the ability to create subaccounts. For example, I can create a separate account for my car fund, without having to go through the whole account setup process again.
The biggest negative at ING for me is that it won’t let me add a link to a Fidelity brokerage account. When I first signed up for ING, it did and that link is still active, but I wanted to link to another account and they rejected it, saying they don’t allow that anymore and that if they knew about the earlier link, they would de-link it.
A suggestion that I received on my blog, which I think came from http://www.mymoneyblog.com, was to just use Fidelity’s money market funds, which currently get about 5.18%. There’s a handful of money market funds, which offer very similar rates, so I can use one fund for the car, and another for other purposes, for example.
HSBC sucks. I was tempted by the 5.05%, and transferred about $25,000 there in March 2007. I just closed my HSBC account.
I’ve had ING since 2003, and they’re WAY better; just transferred $31,000 back to ING. The extra 0.55% HSBC pays is NOT worth it. Even though I’ll earn $20 less a month with ING, that $20 a month is worth it NOT to deal with HSBC.
HSBC took FOREVER to open an account, harassed me for bank statements and ID, as opposed to ING’s simple account opening process.
HSBC’s ACH transfers take way too long.. I’ve initiated ACH transfers with ING and have seen them credited at the other bank the next morning. HSBC, takes like 4 days. You know they pocket the interest on that longer timeframe.
HSBC’s customer service in India and Phillipines is HORRIBLE. ING has customer service in the USA/Los Angeles and almost no hold time ever.
Also, HSBC lied to me multiple times, not letting me add ING Direct as an account with which to perform Bank to Bank transfers with. They told me “ING doesn’t allow it”. I had to prove them wrong. I faxed a bank statement showing my credit union successfully debited my ING account via ACH. What do you know.. a month or two later.. ING was allowed. Idiots.
HSBC doesn’t even have something as simple as a daily recurring balance on their website.
I repeatedly had to call AGAIN about issues. Poor customer service would drop the ball.
I closed my HSBC account mid-statement, and they KEPT the interest accrued. Crooks. Good Riddance, HSBC. I hope other people close their accounts, or don’t open one, too.
I tried HSBC, Capital One, and Fidelity in search of slightly higher yields than ING, and all I got was a big headache ( especially from HSBC! Horrible customer service based in India, undisclosed fees, outright false information, poor website and interface, etc etc ). It’s worth losing .5% interest with ING just for the peace of mind that comes with ease of operation and prompt and courteous American customer service.
[...] more information, check out this article at Get Rich Slowly, and be sure to check out the comments, where there are over 200 comments offering suggestions, [...]
[...] Low- or No-Minimum Savings Accounts: This is where you’ll find the biggest gap from a non-socially minded strategy. While there are dozens of community development banks that have savings accounts, you’re looking at 2% or less, usually under 1%. While this compares well to plenty of traditional banks, it’s well shy of the rates you’ll get from online high-yield accounts. [...]
offering ultimate checking account @ 6.01 apy. no min. no fees. free atm access.
It is indeed fruitful to store your spending cash in one of these accounts. A lot of people are missing the boat when it comes to earning interest. Thank you for sharing this info!
For more tips of saving and putting your money to work check out…
http://stretchthatdollar.blogspot.com
It is indeed fruitful to place your spending cash in one of these accounts. A lot of people with “plain old” checking accounts are missing the boat when it comes to interest. Thank you for posting this info!
For more tips on saving, planning, and improving life check out…
http://stretchthatdollar.blogspot.com
[...] credit union is an excellent choice. You might also consider internet banks, which often feature better interest rates. Here are [...]
[...] and have be throwing money at it ever since. It’s been a great start (I highly recommend you check it out. Currently it’s at 5.05%), however it’s not an ideal solution for long-term [...]
I’m still happy with my Capital One savings account. Maybe not the highest paying firm, but nice to see my savings, car loan and credit card all on one screen. I prefer convenience over stupid mouse clicks or “site keys” that others make me go through. One bank has a “site key” that I picked and allows me to add a caption that I included what my city will never be….then, they add a security question, “What city do you currently live in?”….DUH!!!!! I guess these extra BS prompts really help, huh?
PS. If you are worried about a few fractions of a point of interest, remember one VERY important thing: You don’t MAKE money on savings interest, you protect your short term funds against inflation. That’s all, nothing more….4-5% does the job…. The 0.5% Bank of America offers is an insult! If you open a savings account with tens or hundreds of thousands of dollars to “make” money, then you are stupid. Intelligent investments have the potential to “make money”, not passbook savings accounts.
@ Drew
Check out AmTrust Direct. They’re your standard online savings account (technically money market) but if you need it, they offer a “companion account” basically an online checking account through them with no minimum fee, and no maximum transactions since it’s “internal” you need to call to find out about this since they haven’t posted it online, but their customer service is great as i’ve noticed so far.
Also, there is a 1$ minimum (not $1000) opening fee contrary to what the article says.
What kind of ATM card does Capital One issue? Is it on the Visa or Mastercard network?
Also, is there any refunding of other banks’ ATM fees?
Thanks,
Robert
[...] Which Online High-Yield Savings Account is Best? ? Get Rich Slowly (tags: finance money) [...]
[...] saw Get Rich Slowly discussed this topic and I thought to just share our story with online [...]
To Chris Hollander:
Yes, you can get the yodlee aggregation service at HSBC. You can go to HSBCDirect.com and open a 5.05% (no minimum, no fees, no gimmicks) online savings account. When you use their personal internet banking, they have a service called “easy view,” where you can aggregate all your information on one page. It’s really cool, and free!
Edgar (Post 110),
You inquired about IGoBanking.com. I just opened a savings account with them. I’ll let you know how it goes.
I’ve been with EmigrantDirect for 10 months. There have been no glitches.
I’ve tried hsbc,ing,emigrant. I would recommend Emigrant and ING to anyone, but I did not like HSBC at all. The HSBC site is horrible and seems to have its fair share of bugs.
Along with a couple other people, I think Amtrust is being overlooked for no good reason. I’ve had my money with them for almost a year, and I haven’t had any problems. They offer the highest rate under for under $10,000 (not introductory). The money takes 2-4 days to transfer, but on inward transfers your interest starts accumulating sooner than that.
I’ve read some comments about poor customer service @ HSBC Direct. Well, I have an account at EmigrantDirect, HSBC and ING and while I’ve never used any of the customer service on any of them, I did find that HSBC goes a bit overboard in terms of security. For me, however, I find the nuisance to be tolerable considering they’re usually at or near the top when it comes to rate of return (without a min req). If you’re just looking for a place to put your money in, and keeping it there for the long haul, then HSBC is a solid choice.
Does anybody have the referral for the $25 bonus through ING. I’m thinking about going with them.
I pretty much have an account or had an account with all the big guys plus some smaller ones (…AmboyDirect, AmTrust, Apple Bank, Citibank, Emigrant, E*Trade, HSBC, ING, OneUnited, UFB Direct, VirtualBank).
OneUnited compounds interest quarterly…so, although they have a competetive rate (5.30% apy on bal of $1000+), its an obvious no. amboy, amtrust, e*trade and virtualbank have all worked well for me with the little tranfers i do with them.
i personally like HSBC the best. signing on is obnoxious due to all the security…but i also appreciate it. the best part i like about HSBC (sorry if this point has already been commented on) is the ‘bank to bank transfers’ screen which allows you to basically use HSBC as a hub for all your banking accounts…HSBC or not. i currently have 13 external bank accts registered with HSBCs bank to bank service. it makes it really nice if you want to transfer money from one external acct to the another and the two really have nothing to do with HSBC…yet HSBC allows you to do it for no charge. its awesome.
I started my online ventures with ING. although they were the leader in online banking in the early years, they have since ceased to be competitive. i think the only reason they keep customers is bc a lot of people are just scared of change and scared to move their money. i mean really, why would anybody stay there if they can get 1% higher at HSBC? it just doesnt make sense. ive had good experiences with both companies’ cust service…so, that shouldnt be an issue either.
the last thing ill comment on is why there isnt more chatter about http://www.ufbdirect.com (http://www.ufbdirect.com/ufbdirect/rates.asp under ‘absolute savings’). ive had nothing go wrong with my account with them PLUS the rate is 5.19% (5.31% APY) on ALL balances…no min, $1 to open. if youre looking at something for an emergency savings only, this would be a great option. im also a big fan of emigrant and HSBC for this as well.
Hi Marinski, you can email me at soonerhail09@ou.edu to get the referral for ING. Look forward to hearing from you!
Hayley
ING is dropping it’s rate to 4.3% as of tomorrow. The sign-up bonus was nice to start with and the 4.5 rate was reasonable but now with the drop I’ve looked elsewhere.
I’ve seen a couple remarks about igobanking and I opened an account with them a few weeks ago. The setup was about a week and a half for me. Some of the hoops to jump through suck, ie no “premium” next day transfer available for a certain time period so I have to wait 3 days for funds to be available when transferring in. However with a 5.3% rate, I really can’t complain too much.
This is a fantastic discussion!
I use three of them. ING, Emigrant, and HSBC. Each one is used for different savings goals.
Of the three, I think I like ING the best for its ease of use. HSBC’s interface isn’t all that user friendly to me. (ie Why do they have two “Transfer” links? Bank to Bank and Transfers? I always have to stop and think before I click to make sure I’m clicking the correct one.)
Also, another complaint about HSBC is the amount of time it takes to transfer both in and out.
I’m still happy with the account, however it’s not my favorite of the three.
Emigrant was my first high yield online account and I’ve almost closed it a few times. The only reason I’m still a customer is because I’m a penny pincher. I withdrew all of the money from it thinking that they would close it after a few months for inactivity. But then a couple months later I went back and checked it just for kicks and saw that I had a few cents in there.. presumably from interest pro-rated or something.
Anyhow, I’ve decided to keep it.
I love ING’s referral incentive.. So far I’ve used 5 of my alloted referrals and have gotten the bonuses. Hey, Free money! I wish the other two offered this as well.
The absolute greatest thing about ING is that their withdrawal process counts as a direct deposit with Bank of America.
This is important to me because I have the “Free checking with direct deposit” account with BofA. It was great when I had a JOB, however I’ve since gone self employed in a primarily cash oriented business and therefore do not have the luxury of direct deposit.
Without direct deposit I get dinged $5 every month from BofA…. Until…. I discovered that a single transfer of $1 from ING each month counts as a Direct Deposit and waives the fee.
So as long as I remember each month to do this it’s all good.
Finally, I’d like to tell you about Paypal. I keep a significant sum of money in Paypal and I have their Mastercard Debit card. Paypal will give you 1% cash back on any purchase you make using the debit card as credit as opposed to debit.
Hey, if you’re going to be spending money anyways, might as well get a small kickback, right?
Just be careful though.. There is a fee if you use it as a debit card (none if you use it as a credit card)
Anyways, I’ve talked your ear off. Hope someone’s able to use this info to their advantage.
Oh yeah. One more thing. Bank of America’s Keep the Change option is awesome!!!!! I love it. The match! I’ve been on the program almost two years and my first match last November was $75! Free money!
I’m coming up on my two year and I expect my match this year to be about the same.
And while BofA doesn’t pay a high yield, I can transfer my keep the change money to ING or Emigrant each month and badabing!
I have been with AMTrust and love it. 5.36% how can you not love it. No fees and very user friendly.
I use ING and have always been happy with them. I can actually get someone on the phone when I need to and they are in the US.
Try this:
1. Open a high yield savings account that lets you do direct deposit and bill pay. 4-5%.
2. Get a cash back rewards credit card with no annual fee. 1-2%
3. Direct deposit your paycheck into the high yield account.
4. Buy everything with the cash back rewards credit card, groceries, DVD’s, rent, bill pay, everything. Basically spend $0.00 cash.
5. Pay off your credit card bill IN FULL at the end of the month to avoid finance charges.
6. Watch as you earn money on the purchases you made with your cash back credit card, and the money you didn’t spend for 30 days that was sitting in your high yield savings account.
This method relies on you to completely pay off your credit card bill on time and in full every month, so for those forgetful types this probably isn’t the best idea for you.
However, those of you bouncing back and forth between high rate savings accounts, just think: You get 5% on your savings account money, plus 1-2% on your cash back credit card. In theory up to 7% a month.
Miserly I know, but who cares.
I just logged into my ING account. It didn’t take them very long to drop their interest rate to 4.9%
I’ve got a boatload of money in ING that I use for a CD ladder. That is the pits!
I’m sure that the recent cut is going to cause a bunch of new posts (well - I hope so)
I don’t know how many people still visit this post — I know that there are new comments all the time — but those of you who do, would you like to see an updated post on current yields, etc? Or would your rather just keep all the discussion here?
I do not know anything about this one, but has anyone heard of Frist Bank online? http://www.firstbankonline.com
It says 6.17% APY
Hey, just to throw my two-cents in…
Anyone see the Money Market account from FlagStar bank? It’s over 5%, no minimum, no fees, and has check-writing. Technically it’s not a savings account, but I’d take a rate over 5%!
JD, saw your note
I keep coming back to this, in fact I’m about to pick one of the sites today and get an account open, but I’d be curious for an update..
Thanks!
JD, yes, I would definitely like to see an updated post for this!
I have had ING for about 2.5 months and they just dropped my savings from 4.5% to 4.3% and the checking from 4% to 3.5%. I wrote an email asking what was up. We’ll see what they say, I’ll post it if it is interesting. The other banks don’t seem to have dropped their rates.
Well, I got an instant response, I guess I wasn’t the first to ask.
From ING:
Currently, interest rates are dropping across the country. Like the rest of the industry, we are responding to market conditions. We have a strong value proposition at ING DIRECT, which means we will always have a rate among the highest in the nation.
We did not lower our rates in connection with the Federal Reserve. Our rates are based upon market conditions which have been influencing bank lending rates for the last several months. The Federal Reserve made a major reduction in interest rates, while we made a minor change.
End Quote
I must say, I love the interface on their website.
[...] Here is a link to a Motley Fool article which nicely describes all your cash account options and what different interest rate terms mean. Here’s a link to find a great interest rate for your cash from Get Rich Slowly. [...]
I received a email from FNBO today informing me about their new rate to start on 9/29/07 will be 5.05%. Just opened a account with KeyDirect.com at 5.35% and one at Flagstar.com at 5.30%. I will be transfering my dollars next week.
JD, I would love to see an updated post… rates have changed so much, not to mention it seems like there are a few new players. I’ve been reading the posts on iGObanking.com at the fatwallet forum (http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=689719&start=0) and people are either happy with them or really unhappy.
I currently have $30k with ING and I’m wondering at what point should I switch to something like HSBC, Emigrant, or even iGO… switching to iGO’s rate would give me an additional $6k in interest alone. But, I like ING and find it convenient enough for my needs. Eventually I’d like to get into CD laddering, either with ING or through Fidelity, which is where my IRA is. I’m just concerned about having my money in too many different accounts - it’s hard to keep track!
Oh, never mind on the $6k interest… I’m doing my math way wrong. But still, at what point does it make sense to move to a new interest rate? Does a couple hundred dollars over the course of the year become worth it?
@aaron: HSBC just dropped 55 basis from 5.05 APY to 4.50 APY. I was thinking of switching to one of the others, but I’ll wait a month or so and see if all the high yield accounts start dropping.
Okay, folks — here’s the plan. Since interest rates are in the process of settling, I’ll wait a few months. But then I’ll post a new list of current rates. Actually, if I can find the time, I’ll create a WordPress “page” that contains up-to-date interest rates…
HSBC just sent me a note their 5.05% is now dropped to 4.5%…presumably as of today….
“Does a couple hundred dollars over the course of the year become worth it?” Looks to me like it is worth a couple hundred dollars…or am I missing something??
I stumbled across this site after researching high interest rates upon reciveng the same E-mail as Brad stating the drop in my HSBC savings… Yes I do find it worth it to switch banks to “chase” an interest rate as long as the bank is reputable & FDIC insured!
I found this site for the same reason as the two commenters above me…the drop with HSBC. I joined when they had the 6% promo in March. Too bad about the drop with HSBC, but it does seem to be a trend if ING just dropped and now HSBC. I’ll check back here, but a new post would be cool, too, given the changes in the market since March.
country wide…still at 5.5 with a 10k min…
[...] offer if you already hold accounts with them. Otherwise, I’d suggest taking a look at this list at Get Rich Slowly. A lot of people have weighed in with their preferences in the comments and made [...]
where is it 5.5%with 10K min?
HSBC isnt the only one dropping there rates. Its nation wide…no bank is suppose to offer no more than a cetain percentage. If you relly pay attention no bank is offering over a certain amount. Some banks are going to offer it to get rate shoppers like most of you and then drop them again when they realize they cant handle it. And plus you shouldnt be dumping over 100K into an institution even of they are FDIC insured.
Today I see Emigrant is dropping to 4.75% APY. Banking101 doesn’t seem to know that banks do vary their interest depending on their need/lack of need for funds. Often specials will occur for needed cash influxes, which is why the banks normally restrict the specials to “new money.” I got a 6.0% 5 yr CD from my credit union when they had a 10 day special about a year ago. Gotta keep your eye on them.
I signed up for IGO Banking and ZION Bank today. Zion is 5.57% over $50k, and 5.30 between $1k ans 50k. But I could only get to that screen via Bankrate.com, as when I went directly to Zion Bank, the “internet rate” was below 5%.
I’ve sent an email requesting clarification, as Zion’s process requires you to print deposit slips and signature cards to mail in with your check. If they are dropping below 5% and that’s all they’ll pay me in a week when they get my check, I’ll pass.
I just opened an online checking account with Salem Five Direct. It’s the eOne account and has a 4.8% APY for up to $5K, 4.9% up to $10K–the highest rate right now on bankrate.com. I really like the idea of making interest on my checking account. This bank has no fees as far as I can see, a $100 minimum to open, and reiumburses for ATM fees up to $15/month. The only snag I don’t really understand is that you have to mail in your initial deposit if you don’t already have a Salem Five brick and mortar account, which seems bizarre to me. Anyway, great account, hope all goes well with their customer service.
What is the risk of putting over 100K in an online account? If the bank is in trouble you are sure to hear about it. Cant you just then transfer the money into another bank account that you also opened?
Any advice on this?
Well, Mark…read the stuff about Netbank that just failed Friday without any real notice… Read also the CNN link about the NY software company that has $1,000,000 there, and their $900,000 ininsured exposure.
No reason to push it, keep under $100k in any bank, altho there are ways of titling the accounts to get more insured. It is simpler just to use more banks if you have enough money to reach the $100k insured limit.
Zion still hasn’t answered me on what their rate really is (see earlier post)… UFB Direct told me they’d hold my app waiting for a call from me. When I didn’t call in a day, they called me and approved the account on the phone. Still waiting for a response from IGOBanking, as they wanted a DL copy.
HSBC, ING and Emigrant were a lot easier to set up…but they are all a lot less interest at this time….
An updated list of rates would be good. I know that AmTrust is over 5.00% and Emigrant dropped to 4.75%. I do want to check into Keydirect.com and Flagstar.com to make sure they are FDIC insured. If anyone can think of others please keep us all up to date.
Don’t use Countrywide! They put a hold of over a month on my money and when I tried to transfer some back to my checking account to pay my bills they stopped the transfer and didn’t tell me why! These people are crooks!
I think Countrywide is struggling to stay afloat. They are offering excessively high mortgage rates now, they keep bombarding me with “We want you back” emails from a former loan, and they have laid off something like 3,000 folks recently if I remember the article correctly.
IGObanking (5.17% APY) finally finished its process and let me fund with an easy small ACH transfer. Seems to be ok.
UFB (5.31% APY) also finished and I printed off their UPS sheet…free-to-me envelope and free handling of my deposit (UPS bill to the bank was $7.75 I think, to handle my $50 check for initial deposit). Hate having to mail it in…
Zions Bank still hasn’t responded to a several-day-old email requesting clarification of their rate… It shows as 4.91% APY when you go directly to their website (”Ultimate” account) and there is nothing higher shown…but if you click on the link from Bankrate, then they offer 5.30% APY (”Deseret” account) for $1000-$50000 and all the way up to an astounding 5.56% APY for $50k and over…
Anyone having luck with them?
Has anyone tried Amegy Bank of Texas? They currently have a 5.2% APY for accounts $1,000 - $99,999 and 5.3% APY for accounts $100,000 and above.
There is a $1,000 minimum to open and a monthly service fee of $12 will be charged if your balance drops below $1,000.
I just got off the phone with ING….asked them about setting up a joint savings acct. with my daughter (under 18), and benefits of me being primary, or her….the lady said something about setting up my daughter as the primary would be better tax wise…what does that mean? She also mentioned something about me paying taxes on my total balance…anyone have any idea what she was talking about???
Thanks Brad for the response.
I thought about opening an account with Amtrust but now I am not so sure. Their rate dropped from 5.37 to 5.21 a week or so ago. Which makes sense as they are all dropping. Today I went on their website and it is now 5.16. Why didnt it just drop to 5.16 the first time? It seems very deceptive. Whats the point of signing up if they keep abruptly dropping like this?
Hey also…has anyone tried Grand Yield Direct (the online version of Apple Bank)? They have a 5.15% APY and it requires $2,500 to open. They look pretty good, but I can’t seem to locate their “terms and conditions” document on their website and that kind of bothers me. Has anyone tried them or has anyone found their terms and conditions?
I found their terms and conditions.
Each ACH withdrawal costs $3, unless you want it done in 1 day, then $10…and the other fees are very high (stop payment is $33).
I tend to trust Bankrate.com…if they don’t list a bank (like this one isn’t listed), I generally pass…..
https://www.theapplebank.com/bridge/disclosures/ib/disclose.html
Some notes on the various banks I have tried:
ING Direct: I was happy with them until I went to try and import the account into moneycenter.yodlee.com. They do not provide OFX account access, so you cannot have a 3rd party automatically download your account information.
HSBC Direct: I wouldn’t go with them at all, It took forever to open the account, and if you want more than one savings account (I have 4) you have to open each separately (which takes forever).
Currently I am trying Emigrant Direct.
Thanks for the link, Brad, but I did in fact find Grand Yield Direct on Bankrate.com. I looked up high yield MMA and Savings accounts at Bankrate and Grand Yield Direct is near the top of the list. Bankrate ranks Grand Yield/Apple Bank’s financial condition as 4 stars.
Guess I’m old and blind, Michael… I see it there now…sorry.
Zions.bank did get finally back to me today, and they gave me a link to their Deseret account. It is indeed 5.56% for over $50k, and 5.30% (APYs) for $1000-$49.999.99. You can’t find it on their website directly, but the link is:
http://www.deseret.zionsbank.com
brad/michael…i have to say that i just read the terms and conditions for applebank, but i personally have had an acct with them for a few years now and have NEVER received a charge (the $3) for ACH transfers. i even looked at my previous transfer history just to make sure i wasnt going bonkers…and im not.
i dont use this acct all that often, but ive done THREE (3) external ACH transfers in the last year from my applebank.com acct to my personal bank acct in my local area (that would be considered ‘external’). under the “charge” heading for all 3, it says “FREE”.
so, im a bit puzzled, i guess as to why they would even put that on there if its not true…especially if its a positive selling point since nobody else i use has any transfer fees.
hope this helps.
AppleBank *might* be meaning that it would charge $3 if you performed the ACH to your external bank *FROM* your external bank…instead of their desire that you do it *FROM WITHIN* the Applebank transfer system *TO* your external bank?
You’re right…very puzzling, the way they have it stated. Unclear writing abounds these days…
i would agree with that IF it were possible. when i try to transfer FROM my local brick and mortar (from the drop-down menu) TO anything through the website…it ONLY allows me to trans to the applebank acct, NOT any of my other external accounts…which is the same thing with my HSBC acct.
so again i ask, why even put that in there? makes one ponder.
Brad,
I am not an expert on how these interests rates work but I opened an account with Amtrust just after the interest rate dropped from 5.36 to 5.21 about 2 weeks ago. I checked the site a few days ago and it was 5.16. Today, I go on the site and it is 5.06!!. I really am considering closing the account as I feel they are dealing in deceptive practices. Like I said though I am not an expert but I dont see the other banks dropping in increments like this (HSBC went from 5.05 to 4.5 in one instance). Im afraid by Monday it will be below 5%. What do you think about all this? Thanks
Well, I think it does sound a little too reactive for them to put out multiple changes like that. The others I am with (HSBC, ING, Emigrant) were all pretty stable and each just took a 1-step drop this time. I’m in the process of trying out Zions, UFB and IGO right now. I already think UFB might not have been the greatest move, as you can’t fund it via ACH, and I did see there is a $30 “Early Closing Fee” if one closes within 180 days. BUT, it is the highest rate for me for a $1 minimum at 5.19–5.31%APY.
If you do leave AmTrust, it looks like there is a $25 “Early Account Closing Fee”…with no explanation of what “early” is. I “left” ING when it dropped so far below HSBC and Emigrant, but that still meant I kept a small amount in there. Too much work to get these open, I’ll just keep them all but put my money where it earns the most…which, as we’ve all seen, varies depending on the bank and its need.
Hope this helps…
I have been with Emigrant (Both Suze Orman and Clark Howard (radio talk show host)) had recommended them. In addition to the great interest rates and customer service with links to checking accounts they have a fabulous credit card program as well. If you keep 10,000 in your savings account, they will pay you 1.4% back each year. This is better than “bonus points” which are usually 1% back per year in gift cards. This is cold hard cash to your savings account.
Money magazine for October had these rates for Savings:
UFB Direct 5.31 (min. $1)
GMAC Bank 5.30 (min. $500)
IGObanking.com 5.30 (min. $1)
Security Savings Bank 5.25 (min. $100)
Transportation Alliance Bank 5.25 (min. $25)
Newbie to this site. Has anyone checked out the Bank of Toledo? They are offering 6.01% with no min balance. They require 10 transaction min and one ACH per period. Doesn’t sound too bad. What’s your take?
GMAC down to 4.9%
IGO.com down to 5.17%
They are dropping fast. I have a question. If you open one of these accounts and link the account externally to your normal bank to withdraw funds into the new account do you also have to set up the external accounts at your original bank? My new online account already withdrew $ from my original bank when I opened the account. I now added my original bank as an external account and I am waiting for it to be verified. Once it is verified, am I now done?
Thanks in advance.
[...] J.D. takes the intimidating topic of personal finance and makes it approachable for any person. Which high-yield savings account is best? is a great example of what to expect when you subscribe to Get Rich Slowly. Subscribe by RSS Feed [...]
Watch out for capitalone. I signed up for their savings account for my emergency fund, only to have my account access restricted. The reason for the restriction was that I had moved residences a several months prior to setting up the accounts. Apparently this looked like fraud to CapitalOne. I suppose this would not be a problem, except CapitalOne never sent me checks or an ATM card for the savings accounts. The net result: I can’t access my emergency fund. CapitalOne will be mailing me checks, but those checks will not arrive for several weeks, I will not be earning interest on these funds during this period, and it took me more than four hours to try to figure out what was going on (I had to wait on hold). I would warn anyone to seriously reconsider putting aside money in a CapitalOne savings account for an emergency fund, as they might find that when an emergency arises they cannot acces their own money!
5.31% Money Market @ UFBDirect.com ($1 min.)
4.00% Interest Checking @ Presidential.com
I have accounts at both and have no complaints. UFBDirect has the best rate of return with the least about of restrictions. Presidential offers the best “Checking Plus” I’ve ever seen. But they do have 2 req. to obtain that rate of return. They are pretty simple - 1) Balance can’t go below $1,000. 2) Have one payroll direct deposit a month. They do have another req. - $1,500 to open an account (one time only).
Forgive me because I am a former finance major and have not looked into high yield accounts until now! : )
I have about $15,000 sitting in my checking account at any given and I pay my monthly bills from this account. Which of these online accounts (ING, HSBC, etc.) if any, can I use to do the same thing? Can I be earning money on my “bill money” without incurring too many fees? Can I link it to my Bank of America checking account and transfer enough from the high yield account to checking periodically?
Paypal pays 5.05% right now for money left in there, it has for awhile. that is hard to beat right now, adn they obviuosly have no minimum
But I was told that PayPal is not FDIC insured. That means your money can go with its bankrupcy. Is that true?
[...] I encourage you to subscribe to my RSS feed. Thanks for visiting!Last March I shared a list of the best online high-yield savings accounts. Rates have been dropping, and I intend to post an update. Meanwhile, I’ve received a couple [...]
you may want to buy gold,just to be safe
You all have been so inspiring. I am closing and opening accounts right now with better rates. I’m just wondering if it would be safe for me to open an out-of-state account. What the heck, I’ll start with the minimum and see after a couple of months. It’s worth that great rate.
Eric, I’m opened my accounts with Amtrustdirect.com and I love what they have to offer. Their e-money market apy is 5.06 and just opened the new e-savings at 5.36 apy and a free checking account with a visa debit card.
Im headed home from Iraq and wanted to put some money away for a year or so. Someone recommended iGObanking.com for short term savings. I’m curious if anyone has an opinion on their savings account?
I’ve used EmigrantDirect for a couple of years now. Never had any problems. Transfers back and forth have always gone smoothly, no problems.
ChrisCD
ING just dropped their rate from 4.30 to 4.20. :/
@The Dog Clothing Company (#297):
Yes, that is effectively true. You’re covered if you hold a regular PayPal account AND the bank in which PayPal keeps your money goes under. However, you’re not covered if you have a PayPal Money Market account or if PayPal itself goes insolvent:
http://tinyurl.com/2qz3l3
ETRADE Complete Savings Account –My Experience and Review
I attempted to open an ETRADE/Complete Savings account at the end of September. I applied online and mailed in a very low deposit (there was at $1 min to open, I did it with $5 just to be safe since I’m new at this.)
After two weeks or so I got a call saying they need to verify my address, so I sent them that information. Then I called to see if they received it and was told they closed the account and I would need to start over. I started the process again with the same deposit amount.
My complete savings account with ETRADE was opened on Oct. 22, and I got a welcome letter with account details including my $5 balance from the deposit.
Today Nov 3, when I accessed my account online I see that it has $0 balance and no history of deposits ever. So I call the bank and speak to a customer service representive.
She says she sees no history of deposits and tells me they would have to investigate the matter. She tells me to call back in 2 business days. I was just about to close my main saving account and transfer all my funds over to the new account, but at this point I’m afraid. So I ask the customer service rep. how often are deposits misplaced. She tells me she can’t answer that. There was basically no real assurances given to alleviate my fears. I read this nonresponse as, “I work here and I can’t begin tell you how bad this bank is.”
I just wanted to share my experience with ETRADE. Follow your instincts. My instincts are saying stay away!
p.s. I opened a IMG account and it was opened very quickly even though I did it by mail. I also opened an Emigrant savings account.
Status report on a few of the Internet banks:
I’ve successfully opened up iGO, Zions and UFB Direct accounts this past month and so far so good. They pay substantially more than my old accounts and seem to be working just fine.
Each has different rules about whether they will allow ACH transfers from within the account OR from another account. This makes 6 different internet accounts I’ve had and every one of them is just slightly different. The only trouble I’ve had so far is that iGO, which will perform ACHs from within your account, doesn’t seem to have the correct ABA number listed for UFB Direct. Other than that, all has gone well.
UFB Direct doesn’t directly say you can use ACH from another bank, but when I asked them they said yes…and I successfully made a deposit (from the sending bank…no ACH from within UFB).
Zions doesn’t allow ACH from within, but accepts them from outside and the “Deseret Account” is actually a checking account, currently paying up to 5.40% APY for larger deposits, 5.19% for a $1000 minimum.
Appears my ING rate got dropped again to 4.2% and my igobanking account was dropped to 5% even. Still beats the crap out of my credit unions .45%!
I am going to open up an ING savings accounts. Seems everyone overall likes them the best.
I have a question.
Now with the Electric Orange available, is it good to test it out and possibly get rid of my Wells Fargo account? Or should I keep it? I guess I’m just wondering if ING is good to do everything with, Thanks
I’ve had my ING Orange Savings account for two years now and couldn’t be more pleased. The customer service is second to none, the website is well laid out and easy to use and best of all I haven’t incurred a single fee while I’ve banked with ING. Along side an Orange Savings account I also recommend getting Electric Orange. A feature I particularly like about Electric Orange is free online bill pay. When its time to pay my monthly bills I can transfer funds instantly from Orange to Electric Orange and pay everything from credit cards to utilities.
The interest on Electric Orange varies from 3.25%-4.90% APY depending on balance while Orange does not employ a tiered interest rate and is currently at 4.20% APY.
For those of you looking to get that $25 referral, shoot me an email at rad_lobster@yahoo.com and I’ll be happy to send you one.
Here are some links to the ING Direct Orange Savings Account $25 promotion.
If you open this account with an initial deposit of at least $250, you will receive a $25 bonus to get you started. To qualify for this bonus, you must use the link provided below.
Each link can only be used once so make sure there isn’t a paragraph of red text stating the promo is no longer valid or has expired.
Enjoy!
ING Direct $25 Bonus
ING Direct $25 Bonus
ING Direct $25 Bonus
ING Direct $25 Bonus
ING Direct $25 Bonus
I’ve arrived at the conclusion that Zions is the best place to do everything. First open a Deseret Checking account with a $1000 minimum and earn 5.19% APY (the low tier) and then open a connected free regular checking account. Free bill pay and unlimited checks from the regular checking account…so just transfer money immediately online from the Deseret account as you need to write checks. Only limit issue is 3 moves monthly from Deseret to the regular checking account. Then unlimited free billpay and checks from there. Minimal interest in that checking account, but maximum in the Deseret account.
The one thing I don’t like about ING is how long it takes for a transfer to be available in my account. But I found a work around for that, inititate the transfer from the outside account! I explain on my website at
http://allenjoiner.googlepages.com/ingtransferhack
Hi all… I am looking to open a new ING Orange Savings Account. Does anyone have any $25 referral bonuses left that I might link to? Thanks!
Maria, I don’t have a link per se, but you are welcome to email me with your contact info (I just need your email address) so I can send you a referral. Just put something in the subject line about ING Direct referral and Get Rich Slowly so I don’t forget I offered.
Not sure why anyone would select ING right now. It is by far the lowest of the six that I watch. Today’s rates are:
UFB Direct: 5.31%
Zions: 5.08-5.23%
iGo Banking: 5.00%
Emigrant: 4.75%
HSBC: 4.50%
ING: 4.20%
Thank you Steve, I used one of your codes.
All all… I recently signed up for an ING Orange Savings account and now have the $25 referral bonuses available if anyone would like to sign up as well. You get $25 deposited directly into your account if you open an account with $250 or more. Please just shoot me an email at mpalladino@gmail.com if you would like the referral link. I am on my email all day long. Thanks!
Hi all,
I was just wondering why no one has mentioned Washington Mutual (WaMu)Their online savings account is 4.6 or 4.7% with no minimum balance. I already bank there, but i’ve been lookin on many sites, and no one really mentions this bank. Just wondering if someone knows something I don’t or if there is something negative I should be aware of.
In response to the poster above about why anyone would choose ING: ease of use (including signing up, access, transferring funds, etc); GREAT customer service; top notch security; and finally, having a reliable place to keep your savings if you’re not into rate chasing.
After all, unless you have $50,000 or so to put away, a percentage point here and there is not that significant. I’m very satisfied with ING.
[...] banks, check out My Money Blog’s list of online savings accounts and Get Rich Slowly’s bank comparison (make sure to read the 90+ reviews made by [...]
[...] I want to save at least $10,000. Ultimately, I’d like to have a twelve-month cushion in a high-yield savings account. Excessive? Perhaps. But it’ll help me sleep easier at [...]
What about FNBODirect.com. I think their rate is currently 5.05%
“3 Reasons Not to Use Online Bank Accounts”
(http://banking.about.com/od/savings/a/3onlinebankacct.htm)
Online banks are not all that well reviewed here.
Is the reviewer correct? What you folks think?
Is he right? If not, what is he missing?
Just signed up for Emigrant Direct today. So there is a light at the end of the tunnel after paying student loans for 9 years and a few more to go.
Thanks for all the postings here. They have been very informative.
@324 Craig,
That review is in my opinion poorly thought out and not in the least bit convincing. About the only serious legitimate point he makes is the second one - the time it takes for deposits to clear (I have no experience with writing checks against an online-only bank account so I can’t comment on that).
His first point (poor customer service) is too general and vague to even be considered a genuine concern. You “may” run into bad service? You can run into bad service just about anywhere, including at your local, family owned business. Just as a data point, I once had an issue with my EmigrantDirect account (I got locked out of it). I called customer service and the issue was resolved immediately. The representive was helpful and polite. Maybe next time I have to call I won’t be so lucky but so what? That’s the crap shoot we take when we call *anyone’s* customer service.
As to the third point, I guess that’s technically true but I think most people here would see that as an advantage rather than drawback. Online accounts are good, safe places for parking a wad of cash that you won’t be needing for day-to-day living. If you’re just starting out, trying to get out of debt or trying to build discipline and reign in your spending having an account that doesn’t lend itself to impulse purchases is a very useful thing.
Every point he makes argues for keeping a separate, more liquid checking account and maybe other redundant savings accounts with other banks. But nothing he says is a very persuasive argument for avoiding online bank accounts alltogether.
i think i have a headache, i read all 325 articles and i forgot, which one is the best? i want to open a savings with high yield, be able to move $ without penalties for an emergency,do not want to touch it for 5 yrs, but have the ability to do so without penalties if need to. currently have bank of america for checking, savings (keep the change) program, love this. looking into also considering puting $ into 403(b),but if i do that i will get penalized right?
For those of us with a social conscience, ShoreBank (sbk.com) offers an online HYSA currently paying 5.00% interest. ShoreBank is a community-development, environmental bank. The is a $1.00 minimum deposit required and you can link to your other bank accounts. Transfers take about 3 business days. You can also schedule recurring deposits from your other bank account(s). This is not a CD so there are no penalties for “early” withdrawal. Like other HYSAs the rate is variable. I had an ING Orange savings account previously, but switched to ShoreBank after seeing a report on The News Hour with Jim Lehrer. I’m getting a higher interest and I’m supporting the bank’s mission. I will say that ING’s setup process was more streamlined and their website is a little prettier to look at, but I feel better with my money in a bank that supports community-development and the environment. And I’m getting a better return to boot!
Good morning… thanks for all of the great advice on here. This website is very informative!!
I signed up for an ING Orange Savings account with the intention of opening another account at either Emigrant, Zions, or Shorebank (see post above.) I need to research Shorebank a little further and am looking for any additional feed back in regards to it.
Also, with the new ING account, I now have the $25 referral bonuses available to pass out to anyone that is interested in them. You get $25 deposited directly into your account if you open an account with $250 or more.
Feel free to send me an email at wahhutch9@hotmail.com if you would like the referral link. I’d be more than happy to send it to anyone that’s interested!
Thanks!
I opened up an iGO account a few months ago it had the best APY. THough it has dropped now (Etrades is better) I also dis like how long it takes to transfer funds. A minimum of 3 business days, but it is more like 5. That could be a long time in an emergency. And that is 5 days you lose out on earnings. I am shopping around. Has anyone tried the Etade… how fast are their quick transfers? Have you found any hidden fees??
Oh yes I forgot to mention that not only does it take between 3-5 days to complete the transfer there is a few more days wait for the funds to be available to you. This worries me abit. How long will it take them to send me my money when I need it, say tax time or an emergency?? I suppose I should test it out and see.
[...] experience with any of these, let me know - I’d be interested to know myself. JR, PiggyBanker, Flexo, Bankaholic, Bankdeals, and Ken have all crafted up posts of their own on the [...]
My HSBC account just dropped to 4.25% today.
Currently:
ING Direct is at 4.10%
Emigrant Direct is at 4.65%
E*TRADE is at 5.05%
HSBC had dropped to 4.50% in late October. I wonder if the higher ones are just lagging a bit. It looks like interest rates are going to be sunk for a while.
Hey I saw others were doing this an thought it was a good way to get some free money! If you are interseted in opening an ING savings account with at least $250. Email me first and let me refer you. Opening it this way will give you an extra $25 and me $10. Email bjohnson618@gmail.com with first, last, and email address, and ill send you the referral ASAP.
Thanks!
I opened a UFBDirect savings account (currently 5.22%) a little over a month ago. Went fairly smooth. I opened an interest checking account (low interest, about 0.50%) with them a couple weeks ago so I could link the accounts and have quick access to my money. Transferred money from savings to checking one time so far, but it was painless and posted quickly. It does take a few days to mail and post the deposits, but I expected that. I don’t foresee any problems accessing my money since I can just transfer it to checking and then write a check. Maybe I’m wrong but so far everything seems to be going well. I just sent in paperwork for a direct deposit monthly to the savings account. We’ll see how it goes.
I’m still very happy with UFBDirect…they are the highest in my little group of 6…followed by Zions. Those are the only 2 I have still over 5%. UFBDirect is the only one that hasn’t taken a drop in the last two rounds of drops…so I expect to see one any day now…but am pleased each time I look and see 5.22% APY still on their opening page.
I will be positive and say that both HSBC and ING had the courtesy to email me when their rates fell. They don’t all do that.
I saw no posts in which Countrywide Bank was mentioned. (I read only the first twenty & last twenty.)
Countrywide currently pays 5.3% APY, consistently the highest rate around.
The online service is easy to use, transfers go through quickly, there are no fees or charges and a low minimum.
The rub is that Countrywide is in financial trouble, bankruptcy can’t be ruled out. Thus I keep a close eye on the price of Countrywide stock (CFC)and never keep more in my account than the maximum insured by the FDIC, $100k.
I have had ING, HSBC and ETrade.
Here is my review:
HSBC sucks big time. They give incorrect information and outright lie. Their customer service is terrible. I ended up getting locked out of my account and even after verifying all my information their cs reps in India said the info I was providing did not match. (I think I know my Mothers maiden name).
ING - Top notch customer service. No incredible customer service. Very easy to set up an account.
However I switched to etrade due to higher rates and the ability to have my trading account in the same place.
Etrade customer service is so so. Sometimes it sucks, sometimes its good. The transfer system is awesome and the ability to open trading accounts and view your money in one place easily is great to.
I currently still have my high yield savings with ETrade but I am considering moving my mutual funds and stocks to scottrade due to less fees associated with trading.
If you are considering and of the accounts mentioned in this article I would say go with what you think is the best fit. To me its worth dealing with a few more idiots in customer service with ETrade to get a higher rate and quicker transfers.
However I recommend staying away from HSBC no matter what. It is one of the worst companies out their and their credit card offers are damn near mafia like.
Hope this helps!
Merry Christmas and happy investing in 2008!
Question for Brad and Kjoe (or anyone else):
Just opened up a UFBdirect absolute savings account and free checking. Plan on linking the accounts so I can quickly transfer funds through deposit with my debit/atm card and then electronically transfer to my savings account. Do funds post right away, and if not, when do you start earning interest on the transfer?
Also, sent a question via bankmail about 3 days ago and havent heard anything. Is this normal?
Brian: No, it isn’t normal. They responded quickly to my questions a few weeks ago. I imagine they are a little short-staffed thru the Christmas season…
They post as soon as they get it, and this is one of the few that actually post daily interest gains…even tho it isn’t paid until the end of the month. When you click on your account, it has a line that says “Accrued Interest This Period”. Handy. Can’t believe they are still at 5.22 APY after recent rate cuts….
Thanks for the info Brad. The only downside to UFB seems to be the waiting time to mail in the initial deposit and wait for the check to post. Not bad I guess if its a one-time thing though. Thanks again.
Does anyone hold more than one of these online savings accounts, and transfer between them when rates change? ANd does this really pay off with the couple of days interest you lose in between accounts? Just wondering, My Igo has dropped and I am think of opening another for a higher rate and if I could find quicker transfers. Maybe the UFB.
I signed up with ING about two months ago–by far the EASIEST and fastest set-up of all the online banks. Great, great customer service and interface is very user friendly. Only downside is the rather low interest rate. (4.10%)
Just opened up a UFB account for the higher rate (5.22%) but I wont be transferring funds from my ING account. Plan on using the UFB more as an emergency fund since you get an ATM card which will refund any ATM fees other banks charges up to a certain amount. (Plus, its a little tedious to transfer funds into and out of the account–UFB does NOT allow FREE ACH transfers initiated from your account). I would recommend getting a free checking account so you can just instantly transfer funds back and forth to your savings.
Alicia, I have 6 of them now. I opened ING first, then added HSBC and Emigrant. As ING got money and press, it started downward and I moved it to the other two which have remained higher than ING over time.
I left that sit until a few months back when they all started to fall. I then opened iGo Banking, UFB and Zions at once.
I ended up shifting all but small amounts to UFB and Zions as they are still both over 5%. Yes, it is a pain to wait and lose the interest for the few days between, but the difference in earnings from say ING at 4.21% or UFB at 5.22% is almost a 25% increase at UFB. That is substantial and I’ll take a hit of losing 3-5 days interest in return for 25% more.
I don’t transfer all that often to chase it and it has always been a one-way transfer. I have not seen any bank that was lower in ranking of interest paid go higher than another bank I had transferred money into.
HSBC and iGO both do free ACH transfers (in and out) and both serve well as conduits to or from the ones that don’t. UFB and Zions both will accept deposits via ACH from other accounts…altho that is hard to discover. iGo has some very goofy restrictions of both incoming and outgoing transfers, tho…and you have to contact them to get “permission” to move over a certain amount. At 4.9%, they are in the middle of the pack anyway.
Zions is my favorite as it has all the options of a real bank except the ACH capability…which I think they may eventually work out and add. With free bill pay from checking accounts, it is handy to do your quasi-ACH transfers in that manner. Beware there is a limit if you only have their Deseret Checking account…like 3 check or bill pays per month before they start costing. They will happily open up a regular type checking account for you and then you can move $$$ from the Deseret Checking to the regular one for bill paying instantly online. Regular checking pays lower interest and NO interest for balances under $1000, so I don’t keep much there.
Today’s APY rates are:
ING 4.21%
HSBC 4.25%
Emigrant 4.65%
iGo 4.90%
Zions 4.86 (or 5.14% over $50k)
UFB 5.23%
I now focus my short term savings in two places — Emigrant (4.65%) and a Vanguard Money Market Account(4.61%).
I’ve opened an Emigrant Direct account (I consider it a smooth process) and have been pushing/pulling small amounts into the ED account. Am I reading correctly that Wachovia charges a $3 fee to ACH “push” money out to a non-Wachovia account? Is that commom at brick and mortar banks? I like banking with Wachovia, but I just might direct deposit into an ING Direct Electric Orange if Wachovia charges a fee.
ING has great customer service and a simple to use interface. My transfers have all been done in a timely fashion. As stated above, the slight difference in percentage does not really hurt you as the average saver simply looking for a bank you can trust. Not to mention the referral bonuses are great.
Email me with your full name for a referral link and receive $25 with an initial deposit of at least $250. After that, whenever you refer a friend you will receive $10. - parenthetics @ gmail.com
[...] Which On-Line High Yield Savings Account is Best? [...]
Hey Bianca, thanks for the offer. I may take you up on your offer later on. I do like a lot about ING. Last night, I decided to go with FNBO Direct in addition to Emigrant already opened earlier. What tipped the scales for me was a feature called Bill Pay, which is essentially a checking account without an ATM card or checks. You transfer (immediately) an amount from the Savings account over to your Bill Pay account (interest @ ~3.5%) and then direct the money where you want. This will give me two strong banks to work with in terms of APR (can move back and forth if I choose). As said earlier, my next move will be to open an ING account because they seem so cutting edge.
I haven’t read many of the comments, so sorry if this was covered… I am a rate chaser and recently opened up my WTDirect account. I have to say that out of all my online accounts, it feels like WT’s takes FOREVER to move the money. This feeling could be partially caused by the fact that I get emails from them 1) when I initiate the transfer, 2) when it’s pending, and 3) when it’s complete. Since Ing and Emigrant don’t email me when the transfer is complete, I might not readily be aware of the transfer duration.
I put some cash in WT on 12/18, got a status report on the 21st, and it completed on the 24th. 6 days is a long time.
I already had an INGDirect account, but after reading all the posts, I just opened up an Emigrant account as well. Hopefully it all works out well
I don’t recall seeing a mention about http://www.savingssquare.com at 5.0% APY. I think the lack of discussion caused me to choose Emigrant over Savings Square, but they seem to be a solid option. I’ve saved them to my favorites for future consideration.
Can’t go wrong with ING. I’ve been with them since 2001…..and it just keeps getting better and better. They try to make it easy to do all your banking online, and have recently added a sharebuilder brokerage account that you can branch off of your savings acct. Best of all, they try to keep things SIMPLE. Their rates may not be the absolute highest, but good enough to keep me loyal. Also, the founder is a unique fellow who is on a mission to provide customers top rate online banking in a straight forward and honest manner without a bunch of marketing teaser rates and such. I look for ING to be the WalMart of online banking in the next 5 years or so….provided the electricity stays on here in America.
I have a high interest checking account (brokerage) someplace around 4.5% . It’s through my financial planner at Ameriprise. I like it because it’s a checking account. Yes I could find a better rate on a savings account but having 1 account and not worrying about transferring money is great. I have a debit/credit card and checks.
Update on UFB sign-up process:
For anyone interested in opening up a UFB account (5.22%) I signed up for my account on the 18th and sent in my initial deposit and signature card (required for them to issue your checks and ATM or debit card) on the 19th.
The check was received and credited to my account on the 24th and I received my debit/ATM card (also signed up for free checking so I could instantly transfer funds into my savings via ATM) on the 27th. Pin number came next day in separate envelope.
So the worst part is waiting for your check to arrive and post, but overall a good experience. (Although not as painless as ING)
@319 KEW
Washington Mutual’s Online Savings is fairly new. I don’t think it was available 6 months ago. If you will notice, you only get the high interest rate if you also have another account (checking I think) with WAMU.
I must admit - this does look like a pretty good option for me since I already bank at WAMU - this would give me that instant access to the high interest money by direct transfer.
Check the # of transfer restrictions carefully. WAMU seems to have those hidden.
I so far have 1 Orange savings account with ING direct. They are not the highest % interest right now but everything has been going smoothly with them and I enjoy their site interface and usability.
I also do still have many referral links left if anyone would like to contact me to receive a link (either for an orange savings account or the electric orange checking/savings account) to sign up for an account. You receive $25 for signing up with a min. of $250 or more. A nice little bonus for nothing! Just drop me an email at mpalladino@gmail.com and I will shoot one your way.
[...] Sign up for a high yield savings account and transfer money that’s just sitting in your checking [...]
ING just gives you a feel good vibe. I’ve been with them for a couple years now and I’ve never had any trouble. The online interface is great, easy and trouble free. If anyone wants to open an ING Account and get an initial $25 deposit, shoot me an e-mail and I’ll send you over a “sign up” link! z3trkrnr@gmail.com (the trkrnr stands for track runner, I ran track in High School and College)
Has anyone tried Charles Schwab high yield checking account? If so what do you think of it?
[...] you’ve saved $1000, then you can attack your debt. Open an online high-yield savings account and add $20 or $50 to your account ever time you get paid. Last summer, I opened an account at ING [...]
Hey all!
I’ve been telling myself i’m going to open an online savings account for months now but still have not (I realize the interest I have cost myself) Was anyone else concerned of opening an online account at first? It’s the first real time I’ve ever set a money savings goal and reached it, now i’m afraid to do anything with it.
Hey Wayne, here’s the thing. Since 9/11, when planes were grounded and so were billions in checks/monetary issues, all banks have gone digital/electronic. At Walmart, they don’t even want a check anymore, just a scan of it. Having a not-always-friendly-face behind the counter at your local bank when you make a deposit/withdrawal is costing folks alot of money. If there’s a catastrophic event causing people to race down to their brick and mortar to withdraw all of their money, we’ve probably got bigger problems. And good luck getting all your money. I believe banks only carry what they expect they will need for an average day’s worth of withdrawals. Most transactions are just digital.
We used E-trade and were greatly distressed. Trying to get our money back OUT was almost impossible and took months!
I would steer clear of them for sure.
I have used ING, with no problems. Lower interest, but, I know I actually can access my money!
I just signed up for ING Direct’s Orange Savings account. Awesome! If anyone needs a referral for the $25 bonus for signing up and depositing $250 or more into an Orange Savings Account or Electric Orange checking account, let me know by sending an email to bsdewell@hotmail.com
I just made someone else here $10 by signing up through their link they emailed me, so I can verify that it works. I got the $25 credit within 24 hours (I didn’t get around to check until now)!
Double Your Savings In One Year
This is a great idea for people who only have a couple of hundred dollars to start saving now.
ING Direct is a reputable bank, and above you can read many good comments on their stability and customer service. Open up an ING savings account(currently at 4.10%APY) with $250 through a link I can send you if you email me. ING will immediately deposit $25 in to your account just for opening it, and then offers you the oppertunity to earn $10 for every account that is opened that you refer.
So if you break it down, you deposit $250, and right off the bat earn 10% return on that. Then simply refer 2 people a month to double your savings in one year. OK I know every one hates affiliate programs, but hey this is a savings account, your not selling anything. Just sharing a savings tip, which people WANT that is why this blog is so active.
Lets say your refer 2 people a month
that is $25 the day you open it…
$20 the first month
$20 the second
$20 the third
and so on
equaling $265 by the end of the year. You will have doubled your money AND have earned interest on it throughout the year.
If you are interested in setting up this plan email me with your name and email address and I will send you an email allowing you to open the account and get the $25, I will also email you telling you how to set up the referrals so you can earn the $10 thank you bonuses.
alicia_schutte@yahoo.com
UFB rate just dropped from 5.22% to 5.12%
Well, Brian…it had to happen eventually. But that is still pretty darned good compared to the others…..
My husband and I opened an ING savings account online in late 2006, and received a $25 bonus. But since then the interest rate has slowly been dropping and now it’s 4.1% instead of closer to 5%. I actually prefer dealing with Alliant Credit Union (formerly the United Airlines employee CU), and it is open to almost everyone (PTA, Lifetime Fitness members, etc.) and offers great rates on savings (4.85% APY), HSA’s (5.15%, highest I’ve found), home equity, auto loans, etc. I’m consolidating our accounts there since their rates are so great across the board.
I still have several referrals to give away. So if you want to start your savings well, send me an email and I will send you a referral. But do not forget that you will only be eligible to get the $25 if you make an inicial deposit of $250+. My email is, rodrigo_serrao@hotmail.com
It is never late to start saving. Take advantage on ING bonus and start saving now.
Rodrigo
Wow, you guys have been so helpful! I’ve been wanting to set up a high yield savings account online for the past month or so but was a little unsure where to begin. Luckily I found this thread and between reading all the posts and recommendations and following the links, I feel pretty educated on the subject now!
I do have one question though, is there anyone who has experience with both the ING savings account and the Emigrant Direct savings account? I’m trying to decide between the two of them and I was just wondering if there was someone that could compare the pros and cons for me after having used them both.
My Better Half and I met with our new financial adviser last night. One of the many things I brought up was moving my emergency fund to an online account.
I mentioned learning about ING Direct from this website and asked for his recommendation. He said to do it. According to him, ING is the easiest to use, very popular among his clients, web-based, and, best of all, free. His own clients use it. He does not.
Why? He uses his own company’s online banking system. He himself has gone totally paperless, which was another one of my questions. He recommended going paperless, too.
I asked him why would he not use ING himself, but recommend it to others. Well, being an employee of his company, he gets a break on their fees, which could get steep for non-employees or for others, like us, who would simply not have enough money moving into the account every month.
I also brought up HSBC for comparison, but he firmly recommended ING. The only drawback to ING that I can see is a lack of ATMs in our area, but I can live with that.
Megan Said (on January 9th, 2008 at 11:26 pm)
‘anyone who has experience with both the ING savings account and the Emigrant Direct savings account? I’m trying to decide between the two of them and I was just wondering if there was someone that could compare the pros and cons for me after having used them both.’
We have accounts at both, opened around 2004-2005 timeframe, we drip-fed our ING account with a small amt each month to go towards car insurance, but since the rates were/are higher we used/do use EmigrantDirect most. I have never had a problem with either. I also have ETrade Complete Savings which has a higher rate than EmigrantDirect right now and have moved some $ into there. We don’t want all our eggs in one basket, though no problems with any of them to date.
So returning to the question I’d say from my experience go with whichever makes you feel better. They’re both FDIC insured to 100k and both seem to work as advertised.
I have accounts at Emigrant and FNBO. Emigrant @ 4.65 and FNBO @ 5.05. However, for me, Emigrant has been painless and easy to use, no complaints, everything truly handled online. Not so with FNBO. Not sure of dates, it just seems like it takes forever for FNBO to do anything, compared to Emigrant. My point is that I’d be willing to accept a .4% drop in rate to get the kind of service I get from Emigrant. At the time of opening these accounts, if ING had been just a little bit higher, I would have opened an account with them then. However, I’m impressed with ING and will probably open an account with them in the near future. I’d recommend opening an account with both. That way, you have the option of moving money back and forth for whatever reason, like rate changes.
I just signed up for ING’s Orange savings account using a referral from someone on this page on Tuesday night. It was SO easy, quick, and the $25 bonus was in the account the very next morning.
I have several referrals left that I can send out if you’re thinking you want to sign up and get the $25 bonus. You can sign for either the “Orange Savings” account or an “Electric Orange” account. Just send an email to trishahaywood@gmail.com if you’re interested and I’ll send you an email with a link to apply. If you sign up online, you won’t receive the bonus. You HAVE to sign up through the link in a referral email. And remember, you must sign up with a starting deposit of at least $250 to recieve the bonus.
It’s totally worth it. Again, just email me at trishahaywood@gmail.com.
I opened an account with Etrade and 2 weeks later they were still trying to find my account and kept saying that I did not have account, even though I had an account number and a reference number.After several phone calls and several emails I decided that my deposit was not big enough for them to concern themselves with me.I emailed them finally and told them to forget trying to find my account, that I would go with someone else.They have TERRIBLE CUSTOMER SERVICE!!I let them know that,but as I said before my deposit was not big enough for them.I will go with ING or Ameritrade or anyone but them!!! Take my advice and don’t even mess with them!!!
Pamela,
That is terrible… thanks for the heads up!! If you still want to open ING drop me ans email alicia_schutte@yahoo.com
and I can send you a referral. And I had to call ING because I lost my customer number and the rep was Fabulous! Polite, knowledgefull, helpful, and no ascent. (Sorry I hate calling places that you can not even understand what the rep is saying.) He even asked me about my weather in a polite, conversational security measure.
Have A great day everyone!! And earn your selves lots of interest this year:)
Alicia
I also signed up for an ING account using a referral from this thread. The process was quick and easy and I my 25 dollar bonus was in the account almost instantly. I have a few referrals to give out if anyone is interested. If you’re going to start a new savings account @ ING you might as well make some extral dollars in the process. Good luck and happy savings.
email me at juniah@earthlink.net.
I just happened onto the website today. I have had an Emigrant account for 4+ years. Currently in NY, but was living in LA during Katrina. Emigrant deposited $1000.00 into any clients account that lived in a zip code that was affected by the storm (not a loan…they stated that if the $ was not needed to donate it to charity). For anyone trying to decide between similar accounts, that says it all- they have a customer for life in me!
Thanks Maria. I opened the ING Electric Orange account and received the $25 bonus.
I have some referral links which I will gladly send to anyone that asks. All you do is open an Orange Savings or Electric Orange Savings/Checking accout with a minimum $250 deposit. You’ll get an immediate $25 bonus and I get a $10 referral bonus. It’s a good deal for all.
If you would like a referral link to get your $25 bonus, email me at jmaris@raylindseyco.com.
I’ve had an ING Direct account for several years.
For me, the pros are the ease of use and the ability to have subaccounts (for example, one for saving for a car, one for vacation, etc.).
The cons are that you can’t link to your Fidelity accounts (even through the associated United Missouri Bank checking account) and the rate is a little lower than the most competitive online savings banks.
If anyone’s looking to put their money with a slightly smaller, though very secure, professional, friendly establishment with a high interest online savings account, take a look at http://www.nittanysavings.com (in Pennsylvania). Since I’ve had it for over a year now, the interest is always over %4.5 (now %4.65). The customer service is excellent and you do not have to be a Pennsylvania resident (I thought so at first).
I have been using emigrantdirect.com for over a year and half. It has a nice 4.55% rate plus if you use their no annual fee Mastercard you can earn extra savings. They will place 1.4% of all your credit card purchases quarterly into your savings account (requires $10,000 minimum in savings). It is a nice little extra and a great place for an emergency fund.
The only negative is that it takes a day or so for the money to transfer from your checking account into your Emigrants savings account. Other than that I have been very happy and recommend it to all my friends and family.
Has anyone had any experience WTDirect currently a 4.90% rate for accounts with a balance of $10,000 or more. Bankrate.com gives it a 4 star “Safe & Sound” rating and the their website states that it’s rate’s are consistently in top 5% of U.S. banks. I was just wondering why there hasn’t been many comments for this bank. Is there something I need to know before moving my money?
After reading most of these comments, I have decided to open an account with IGN. I just want somewhere to keep my money while I wait to either invest it or keep it around as an emgergency fund and get some good interest on it.
If anyone wants a referal, I’ll do it with the first person to leave their info after my post!
Email me at jdick@northstar.org
I’m a recent college grad. with no experience in finance and 27k in debt. I’ve just landed a decent (though boring) job paying 43k a year and am looking to being paying off my debt and start saving cash. I had exactly $73 when I got my first paycheck so I am really starting from nothing. Right now I have a MMA that I’m using to save money up with Chase paying .89% interest. After reading this, I see no reason why I shouldn’t move to someone like e-trade. Am I wrong?
James,
Yes definatly move your money to a high yield savings account online… the question always is which one? And the market is always changing and banks are always coming out with new offers, and raising and lowering their APYs.
I thought I would provide alittle insight in to which account to open for people that don’t have $10,000 to invest today.
I have recieved emails questioning whether it is better to open an ING account and get the upfront $25 and only 4.1%APY or open one with higher APY. So I did a little math and broke it down. This only reflects 1 year of earnings.
With the following banks and their current APYs you would make more in interest with ING unless you can open and mantain the balance I have listed here…
Etrade (5.05%) $2631.58
iGO Banking (4.9%) $3125.00
Citibank (4.5%) $6250.00
If you have the ability to open your account with more than the balance listed above, and maintain that balance for the entire year, then it is in your best financial interest to open one of the above listed banks. However it is interesting that you make the same return in one year with a $250 deposit into an ING Orange savings account. That is why I opened one for my personal savings, and still have my payroll in a higher yielding account (it is in the thousands per quarter).
If you are interested in opening an account with ING and receiving the $25 bonus, and the ability to earn thank you bonuses, just drop me an email and I would be happy to send you a referral email with a link that allows you to open your account. And if you are interested in Doubling Your Savings In One Year, I included instructions in how to do this in an earlier post on this board.
alicia_schutte@yahoo.com
Hope you all earn lots of interest this year 2008!!!
Bless you all,
Alicia
James,
I can echo Alicia’s comments and her conclusion. The bottom line is that if you keep a substantial balance ($2000-$2500 or more) in the account, then you are better off with the highest interest rate you can find. However, if you need a revolving account with fluctuating balances, I recommend you decide which account will be most convenient in terms of accessibility and functionality. It is not worth one extra percentage point to hassle with an inconvenient website and/or poor customer service.
I have accounts at UFB Direct and ING Direct. UFB offers a higher rate (currently 5.12%), but it takes several days before deposits are available, and the funtionality is so-so.
ING Direct has a lower interest rate, but they definitely have a more convenient website. I have only had to call ING once. They provided fast, friendly service.
As stated in the previous post, you can earn bonus money by opening an ING account with a minimum $250 deposit. You will get a $25 bonus, and whoever sends the referral link will get a $10 bonus.
If you need a referral link, I still have a few available.
Anyone who needs a link can email me at jmaris@raylindseyco.com.
Happy savings!
I very much agree with the statement in regards to E*Trade as I had a nightmare opening up an account with them. My original application was submitted online on Dec 17th. I called on the 21st to find out what the problem was and was told that I needed to send in my license. The holidays came and went and I heard NOTHING from E*trade. So I called on Jan 3rd and was told that there was a problem verifying my address. I found this amazing since I have a loan on a home, car, college loan, and any bill that reports to the credit agencies goes to this address, not to mention I have a superb credit score. I was told multiple times that I would receive a call back and multiple times was given the name and direct extension of the person I was speaking with. That being said, MULTIPLE TIMES I called and DID NOT receive a call back. Long story short, they have to cancel my original application and finally did approve me for an account.
The thing that I was amazed the most about is that throughout the entire process I did not receive ANY communication from E*Trade stating that something was wrong. I had to call every single time. If I knew this were going to be the case from the start, I would have saved the trouble and done business somewhere else. Now lets just hope that having a higher APY is worth it.
I’m a little surprised no one has mentioned Charles Schwab’s High-Interest Checking Account. I opened one a few weeks ago (my first online bank) and I am honestly extremely happy with it.
It has a slightly lower interest rate than some of these guys (4.0%), but all rates are variable and I’m looking for a bank for the long haul. It has:
- FDIC Insured (it’s not a money market)
- No min balance
- No fees of any kind
- full ATM reimbursements for all withdrawals anywhere
- Checking Account with physical checks sent to you free (I hear ING doesn’t do this)
- Linked to the brokerage and a really great web interface (if you don’t have one, like I didn’t, it opens one for you without requiring a balance).
They even assign a service agent to call you up and walk you through the process and any questions you have.
I’m frankly amazed a bank would be this generous. I wanted to keep a small balance at my old bank, but they didn’t even have a free checking account with no monthly minimum-let alone one with all the perks above-so I’m closing it and depositing exclusively with Schwab.
And in response to the dates left by Aaron, I opend my Schwab account on Dec 30th and by Jan 1st was up and running. The part that took the longest was probably the initial deposit check I sent through snail mail.
Yes…will be opening up a Schwab checking and an ING savings account immediately.
4.0 checking and 4.1 savings..and free atm’s..works for me.
Cya Chase.
Finance Monk,
I’m close to deciding on Charles Schwab myself, but there’s one small snag I can’t seem to recall right now. I think it has to do with transfers into or out of the account, or maybe deposits. At any rate, whatever this function is that I can’t remember, you have to call to have this done, you can’t do it online. A represenative said this should be available online in the future. Sorry for being vague, I’m hoping someone can fill in the blanks. I don’t recall it being a deal-breaker for me, just a slight inconvenience. If I have time, I try to dig around today to see what the heck I’m talking about.
This is actually a discussion about savings accounts, which is why Schwab hasn’t been mentioned. But I don’t think J.D. would mind this one time
I was questioning my math (from a previous post) last night in my sleep. But I checked it out and it is correct. Though my statement that “you would make the same return on a $250 deposit with ING” is not entirely correct. Let me clarify: The figures I listed are the breaking point were if you invest less than that amount you will earn more with ING, if you maintain that amount or higher you will earn more with the perspective banks. Here I will include them again…
Etrade (5.05%) 2631.58
iGO Banking (4.9%) 3125.00
Citibank (4.5%) 6250.00
If you want me to run the numbers for any other bank and APY just ask and I can do that for you.
Though this page has many posts with really negative experiences with ETRADE, and I have an iGO account, and it takes a long time to set up. ING was so easy in comparison!
Have a great day everyone!
Alicia
PS If anyone wants to get the $25 sign up bonus I keep talking about (it is the key to making the best return this year on accounts maintained at under the above listed figures), just email me and I will be happy to send one to you. Then from that link it will take less than 5 minutes to set up your account, and the $25 is deposited right away.
alicia_schutte@yahoo.com
I would like to take your offer for the referal please. Do you have one that applies to ING?
and of course, you will need my email:
jdavis@firstcomp.com.
Thanks!
JDavis -
I just sent you a referral link from ING. If you open an account with a minimum $250 deposit, you will get a $25 bonus immediately, and I will get a $10 referral bonus. You must use the link to get the bonus.
If anyone else would like a $25 ING bonus link, I have just a few left. Send me an email at jmaris@raylindseyco.com.
KJoe
I still have a few more $25 bonus referral links for an ING Direct account if anyone else wants one. First come, first served. Email me at jmaris@raylindseyco.com and I will send you the link.
Also, be sure to note in your email if you want a link for an Orange Savings account, or an Electric Orange checking/debit account.
Great discussion but please understand why folks like Countrywide and E-Trade are offering higher rates. These companies are in financial distress and need capital to keep them afloat. They can offer higher rates in order to attract deposits but it is very questionable whether they will be around in a few years. I understand that both are FDIC insured but do you really want to wait in line with everybody else who could potentially lose money with these guys? Just be careful with Countrywide and E-Trade. Most of the others discussed above are safe banks that might struggle during a recession but will still survive. Just remember - in most cases interest rates are indicative of risk levels. As with most things in like - think about the risk/reward payoff when searching for an extra 50 basis points in an online savings account.
Please go to http://www. Alliantcreditunion.com. Rates are 4.85% APY (and consistenly high with no small print gimmics), free checking, debit cards - minimum deposit is $5 which makes you a member. I have been a happy member for a year. Low loan rates,no fees, and great credit card rates (with rewards). Can do all banking on-line. Nationwide surcharge free ATM network (including deposit ATMs) Online bill pay and tie in with Quicken. Cool feature coming up is electronic deposit (scanning bar code and instant deosit into account from your home, need to be a member for a year, though) - and of course there is always direct deposit - you know the adage - “pay yourself first”.
What else?
Government insured - but called NCUA (for credit unions)instead of FDIC(for banks).
Business model is web based which keeps costs down - no brick and mortar. They are a cooperative/not for profit so have tax advantaged status. No shareholders - so all returns go directly to members.
Just opened up a CD for my Mom who sold her house. Had to be thorough with my recommendation to Mom, so I am sharing my learnings. Found their jumbo CD rates are 5.40%APY on deposits of $25,000 . No involvement in sub-prime, underwriting is sound, more than adequately capitalized.
24/7 telephone support.
If you are a member of Lifetime Fitness or a PTA or a host of other institutions - join Alliant- go to the website.
@ Linda,
Looks great. I tried to establish membership from every angle to no avail. I’m still going back and forth with Fidelity and Schwab.
Well,I’m a new comer and I narrowed my choices down. With $2,000 to start off an account I figured the money earned like this…
E-trade 5.05% APY earning $101.00
EmigrantDirect 4.55% APY earning $91.00
HSBC Direct 4.25% APY earning $85.00
If anyone opposes me using one of the three please feel free to leave comments. All cons are greatly helpful. I pretty much know all the pros.
Bennie, according to Alicia’s chart posted on January 16th, 2008 at 10:00 am, you would earn more at ING with your $2000 starting amount due to the $25 bonus. Since the HSBC rate is barely higher than ING’s and there have been plenty of negative posts on HSBC, I’d definitely take that one off the list.
Bennie,
I have no personal experience with HSBC, but I have read and heard many troubling reports. If you consider the boost that ING Direct can give you with a $25 account opening bonus (minimum $250 deposit), they may be as good as the interest from HSBC anyway.
You can also earn additional rewards by referring friends and family to ING. If someone you refer opens an account (through a link you send them), ING will deposit $10 in your account. Not huge, but when you are considering fractional percentage points you can actually earn more than accounts paying slightly higher interest.
If you would like to open an account with ING and need a link, shoot me an email to jmaris@raylindseyco.com. I will send you a link for the $25 bonus.
If anyone else needs a link for an ING Direct account and the $25 bonus, just send an email.
KJoe
This is starting to sound like an ING pyramid thread. ING is one of the lowest paying accounts out there, once you get past that initial $25 gimmick to obtain/retain customers. Good only for a quick investment, if that is what you are looking for.
I have had HSBC for a few years and, as they are paying lower right now, there isn’t much in there…BUT, they are one of the fastest to transfer and have more ACH ability than many of the others. When they rotate back up to the upper paying levels again, as they probably will, I’ll be making a deposit again.
If you have enough to tuck away to make internet banking worthwhile, just go with the higher APYs of a place that is FDIC insured and put it in there. As most have low required balances, I just leave tiny amounts in an account as I move the bulk to the highest paying account.
5.00% at UFB is almost 25% higher than ING. That is a substantial difference. Each $102.50 interest earned at ING would have been $125 interest at UFB. Over the 4 years I have had an account at ING, they have been consistently falling behind the others in their rates.
Today’s APYs:
4.10% - INGDirect
4.25% - HSBC
4.55% - EmigrantDirect
4.60% - Zions Bank ($1000 min..higher available)
4.90% - IGoBanking
5.00% - UFB
I have had NO problems with any of these 6 institutions.
Bennie,
You can read many negative reports on Etrad and HSBC… you will have to decide if the extra interest is worth it, that is assuming their rates stay up, I am not sure how long Etrade can hold out up there, I am sure they just wanted to hold out until all the “new years” resolutions savers come in, maybe even through tax season, then expect a drop.
Also it is ok to go for the “quick return” with ING, this market is always changing, rates continually changing at every bank. Most do not stay consistant for more than one year… so go ahead and pick which will make you the most THIS year, then relook at it in 12 months.
That is ONE reason I chose ING (also fabulous customer service, and super quick and easy sign up), I can make the fasyest and highest return with ING. I am not going to pick a bank based on what the rates MAY be over the next few years, who could ever predict that. And this is not retirement this is our emergency or vacation funds, for many of us.
Best of luck in your decision!
I wont even peddle my ING refferral links on this post:)
I do have a few left.
Blessings!!
Alicia
Bennie,
I see you did not include the ING numbers. With a $2000 deposit in the ING with a referral link you would earn $108 in interest this year. (Because of the $25, the 4.1APY and the 11 months of interest you will make on the $25.)
Honestly if I were you I would open 2 accounts. The ING and the one of you choice. You would earn the MOST this way, and you would be able to decide for yourself which works best for you.
And I don’t just say this to get a referral.
ALicia
alicia_schutte@yahoo.com
Okay, folks: from this comment forward, I’m killing any referral e-mails/links. I’ve been leaving them in because I thought it would be good to spread the love, but Brad’s right: they’ve become a little too thick.
I’m not going to remove any current e-mails/links, just block new ones.
Good call J.D.
Then when I tell people how good ING is they won’t think it is just to make a quick buck.
Discover Bank has the higher rates on money markets and CD’s. Check there rates at discoverbank.com
Thanks Brad, Alicia, KJoe, and Jeff for all the helpful knowledge. I took in all the info and decided to go with what Alicia said and choose the one that will make the most this year. I may also open two. Are we able to pull out of the account and close it at any time or is it like a regular bank and you have to keep it active for 90 days?
Bennie,
I am not sure for all the banks but I beleive I read somewhere that I cannot withdrawl the the $250 or the $25 in the first 30 days. You should be able to access the amount you put in in excess of the $250 a few business days after it postes. But you will want to ask customer service for specifics on that. I encourage you to go ahead and call, the one I talked to was so friendly and helpful!!
Good night everyone!!
Alicia
Hey Hey ALL ING Direct Orange Savings Account holders… check it out, ING just uped the number of referrals we can give. Now it is 50!! That means we can earn up to $500, on only a $250 deposit. I’ll have to change my post because now you could TRIPLE your savings in one year:)
Just wanted to spread the word to anyone who has not logged on to their account yet.
Blessings,
Alicia
OOps It is still 25 for the savings and 25 for the electric orange. But they will be clearing all referrals that are already completed, allowing us to refer 25 new people. Still an exciting update.
It’ll be really interesting to keep an eye on all these rates over the next 24-72 hours since the Feds just slashed their rates.
I think ING will drop well below 4% and UFB has already dropped from 5.22% to 5.00% in a matter of 10 days. Ah well, I agree with everyone else–making a few bucks a day on my savings accounts is still better then getting hammered everyday with my mutual funds… :/
Hi everyone! I am so surprised no one has ever really mentioned KeyDirect, which is currently rockin an awesome 4.75% for a savings account which also allows you to write 3 checks/month (so like a checking account too with great interest). The check option is great because usually the biggest drag with these online savings accounts that don’t have ATMs or branches in your area, when trying to access your funds, is having to wait anywhere from 3-5 days to transfer funds back to your checking account where you then have to go to the bank to withdraw the cash or go to an ATM. With the check writing option, whatever you were trying to get immediate funds for (e.g. groceries, pay a bill, buy your grandma some slippers), you can just write a check immediately!
This post is already way too long, so for anyone who is interested and asks, I will then post more info (e.g. pros) as well as any honest cons I can come up with. But I have had it for about 6 months now and despite the negative customer service comments on bankrate.com, I have never had a problem and the perks and other details (which I will provide) are outstanding.
Give us the details, pros and cons.
I called in to ING Directs FANTASTIC customer service line today to find out the specifics on the referrals being cleared, and allowing 25 new ones. And they have cleared out referrals that signed up before Jan 9th. And wouldn’t you know I signed up on the 8th. I do still have a few left though. But for anyone who earned referrals prior to Jan 9th, those are cleared and you have the opertunity to enter in that many more.
Blessings Everyone,
Alicia
ING down to 3.65%.
Ouch! But I guess we saw that coming.
The service associate did give me a tip on referrals. If you have joint account, both holders can enter in referrals. That means 50 between the two of you!!
We will have to see what all the other banks do here… we will probably see some pretty major drops today and tomarro. Please all you rate watchers, keep us informed!!
Blessings
Alicia
I just signed up for FNBO Direct Savings with an interest rate of 5.05! I had signed up for Etrade a few days ago but today saw that they had lowered their interest rate to 4.40! Also, my ING Savings rate has gone down to 3.65 (i’m in the lowest tier). Just an FYI to all you folks shopping out there…
i’ve had my acct with HSBCDirect for some time, at least since 2002, and haven’t had any issues. placed the money i was saving to pay for my wedding in there, so it earned interest while things were getting finalized. the customer service was very helpful when i was changing my name afterward, too. their sign up process is a little lengthy, because they send everything via snail mail, but considering their security, it’s definitely something i’m ok with. chose them since i have a checking acct with HSBC, so it’s easy to just move some money over whenever i have an opportunity. not sure how long it would take for a bank to bank transfer with this, but i’d guess 3 or 4 days like everyone else.
also, when you sign up for the account, you have the option to ask for a debit card to be linked to the account (i decided against it, since i don’t need another card to lose!), so folks can have easier access to their savings.
Yah i am not happy about the ING thing .5% is crazy for them just to cut. I guess its all part of the business but they are about to lose mine.
I am a little disapointed that ING Direct dropped their rates again to %3.65 as I had just opened up an account earlier this month. However, just as others have said their customer service is great and the website is convenient.
Ok, thanx Bart.
So let me tell you all about KeyDirect, hopefully without too long of a post! As I mentioned, interest is currently 4.75%. Now to be honest, just 3-4 months ago when I signed up, it was actually 5.35% so they are one of those that were going through the “lowering craze” due to market issues, and perhaps it may dip again, but so far so good and 4.75% is still nothing to sneeze at!
I believe it was $50 minimum deposit to open, but after that, no minimum balance or weird tiers to get this interest rate. As I also already mentioned, you receive a whole book of checks, although you can only use 3 per month, but for me that is fine. You can also only do a total of 6 withdrawals a month (including those 3 checks), but again, no problem for me as my whole purpose is to save and invest, not take money out all the time! You can do ACH withdrawals at no cost so long as you initiate them through the other party (e.g. the creditor/vendor for an automatic bill pay, which I have 4 set up each month and they all go through smoothly and on time every month and no fees). Next, it takes about 3 business days for an online transfer/deposit to post and be available, but in my experience, that is the standard timeframe for most online banks. Ok, what else. For some reason, they are not offered to every state (the exclusion list is: AK, CO, ID, IN, KY, ME, MI, NY, OH, OR, UT, VT, or WA). That will obviously be the biggest con for anyone in those states. I will also admit that the initial application and set up process is a drag because you have to do some things by mail which takes some time, but it took a total of 7-10 days for me, which again, isn’t HELL! Also, guess what? You can make your initial deposit with a credit card/debit card payment, instead of having to transfer in or mail a check. Finally the website is very user friendly and despite 90% of the bad reviews for customer service, I have always had nice, helpful people.
Well, I have tried to cover most of the basics but would love any specific questions if I have forgotten anything.
Recent grad needing advice. I have about $2500 to put in savings till late this summer. Should i wait for the rates to stabilize before opening an account with any of the banks so i don’t end up with the bank that cuts rates the most? Is it not bad and does it not stay on your credit if you have too many saving accounts? kind of like credit cards?
Thanks
As a 21 year-old college student, I’ve realized placing my money in an online checking/savings account is a lot more profitable, and smarter, than just leaving it in a stagnant Bank of America account. FYI, I recently moved to Hawai’i, where there isn’t a SINGLE Bank of America branch.
I’ve only done a bit of research, briefly looked at ING Direct, FNBO, EmigrantDirect, and Schwab, and I’m still quite confused. I want to stay with BofA because of their ‘Keep the Change’ program, security, and customer service, but are there better options out there? I feel naive asking, but all this banking jargon is a little over me. I’d simply need an ATM/Credit card, quick deposits/transactions, NO minimum balance/NO NO NO fees/hidden scares, and reliability, as well as high APY.
I am not rich, by any means, and don’t have much to my name right now, but I’d like to start saving and building interest as soon as I can (I’m currently working full-time and taking a break from university). I’m currently looking at Schwab or FNBO, which, at this moment, is at 5.05%, but I realize these rates are extremely transient and could significantly drop tomorrow, for all I know. Any comments or suggestions would be greatly appreciated!
Kasey-
I have an account with ING and UFB Direct. Started with ING because of the great reviews–excellent customer service, easy sign-up process, user-friendly interface, etc–and all of them are true. The ONLY downside to ING is the rate–when I signed up about 7 weeks ago, it was at 4.3% and now its down to 3.65%. But again, that has to do with market issues more than anything else, and ING isnt interested in being the “rate leader” anymore. (for whatever reasons.) But if you want reliability and stability, ING is a no-brainer. You lose a little on your rate, but with the amount you’re putting in (less then 10K) the difference will be miniscule.
With UFB Direct, you get an ATM card that reimburses your fees if you use another bank’s ATM (which you will since there are no UFB branches in most states), and there’s a hassle with putting money INTO the account for some reason. I just linked it to my ING account and push money into the account via ACH transfers, but its takes 2-3 business days to post. And as I stated earlier, the rate has fallen from 5.22% to 4.50% in a matter of TWO weeks! But I use this more as an emergency cash source since you get the ATM card.
Do a google search of “FNBO Direct reviews.” I remember I was down to FNBO and UFB Direct, but went with the latter because of some issues I read about with FNBO. Hope this helps.
You won’t be able to set your eyes on a particular rate, as they are all moving lower at the moment. I have tracked the ones I’ve liked for a few years. All you can do is try to find the ones that generally stay at the top of the pack as opposed to those quick to lead the pack downward. Clearly, ING has been in the latter group for a couple years, while UFB, Zions and a couple others have historically fallen later and have less of a drop.
Now that ING has dropped into the 3.65% APY range, the several that are still at 4.50% APY and 4.60% APY are over 25% HIGHER in interest.
I haven’t seen much changing in their order over this period. My favorites are still UFB and Zions. Both have answered tons of questions online very rapidly and have stayed near the top of the packs…altho the packs are getting closer together.
Today:
Zions is 4.6% over $1000,
Emigrant is 4.55% over $1 (don’t think it is done falling),
UFB is 4.5% over $1,
iGoBanking is 4.5% over $1,
HSBC is 4.25% over $1,
ING is 3.65% over $1.
They all beat the 0.25% at some brick and morters… If you aren’t really looking for just a savings account, then carefully examine each account for what you need.
Zions has the standard limit of 3 checks allowed per month on their Deseret account, but you may also open a free checking account with them (no interest under $2500), and move money from one to the other online as needed. They also provide you with a free Visa Debit card and free bill-paying on that account. They accept mailed deposits or ACH transfers from another bank…but don’t do that internally. There is a $1000 minimum to open the Deseret account, but if you don’t have that to save, ist is hardly worth the effort as $1000 only will earn you $3.83 a month at Zions (or $3.04 at ING).
Yes, you can get a $30 bonus for each referral you make to Zions, but I’m not doing that….
ShoreBank still offers a 5% yield. You can link up to six accounts and make unlimited deposits and up to six free withdrawals per month. ShoreBank’s web site (sbk.com) is not fancy like ING’s or some of the other big banks. However, ShoreBank is a community development, environmentally friendly bank. If you’re socially conscious, this is where to put your money and get a great return that is not only monetary.
Charles,
I do not see any benifit in waiting. Most online banks pay on an average DAILY balance basis. So everyday counts, well probably pennies, but it counts. ING is still offering $25 which will make up for the cuts. Then if you are not happy with them or decide exactly which bank you want to go with after the market settles in to place, you can open another account.
And there is no penalty for having multiple savings account. In my understanding they do not even show up on your credit report, though an account like the ING Electric Orange Checking account would because it has a line of credit for a ready reserve.
Hope this is helpful.
Blessings,
Alicia
Thanks guys for all the input. I think that i will open one with ING and another with HSBC.
Do ING or any other online savings run a credit check when opening an account? If so, are the credit checks hard inquiries, and having too many may actually hurt the credit score?
Thanks.
J.D.,
I know you have killed the ING referral posts… they are still getting sent to our emails though, even if you are deleting them from the blog. Just wanted to let you know.
I’ve used ING for more than 5 years now - I’m VERY DISAPPOINTED that they are leading the pack in terms of lowering the interest rate. I’m seriously considering switching companies. Even though everyone is dropping, ING seems to be the worst in that respect. Anyone feelings the same way as me?
deerPhD:
My sentiments exactly. The first time they let Emigrant get way ahead of them, I sent them an email about it and basically got a response of: we consider lots of things as we set our rates, have a nice day…
I think they rely on catching folks with the $25 bonus who just stay there without looking at what happens later. They can pay those “bonuses” by penalizing the rest of us who simply maintain accounts there. If they didn’t pay them, they could pay us a higher rate. Since they get enough money for their purposes (loans and reserves) in this manner, they don’t seem to “need” more money.
Besides the Fed interest rate manipulations, individual financial entities go thru periods where they have cash flow issues and just “need” more money for various reasons (like making more loans to others and needing to increase their reserves). When they do, they send their rates up to attract it and those paying attention are able to benefit. I got a 5yr, 6% CD from my local credit union when it was offered for only about a 10 day period in July, 2005. It has not ever been offered since, so I expect it was just a very temporary cash need for the Credit Union.
Until ING develops a “need” by folks leaving them for greener pastures, they’ll continue to pay as little as they can (common sense Business 101). I never completely close accounts I have opened, just in case these needs develop and they change, but I’ve never brought money back to ING. That said, ING has CDs at up to 4.0% (5 yrs). This is pretty high in comparison to the other banks used here (at the moment).
Brad, I think you’re right on about ING. ING Direct has been a disappointment, consistently leading the pack downward.
i too am disappointed with their rates, i have been with them for half a yr, however, i am gonna wait and see what they do in that regards due to their excellent service.
I’ve been with ING for almost 2 years. I think when I opened my Orange savings account with them the rate was like 5.1% This just sucks seeing it drop month after month to a now pitiful 3.65%
I am strongly considering leaving them
If you want you’re initial check lost and no customer service what so ever, sign up w/ E*Trade. I have a $100.00 check floating around E*Trade somewhere and not one person that works there can tell me where it is. So, I had to pay $29.00 to stop payment on it.
I opened an online account with HSBC about a year back at somewhere around 5.5%. Since then, the APY has dropped 3 times, and is now at 3.8%. This doesn’t seem all that great, but understandable right now. Has anyone had a better experience with any other savings accounts?
HSBC is now down to 3.80%
David, that’s happening with all the other savings accounts. My HSBC Direct account was at 4.5% when I started roughly three months ago, and now it’s at 3.8% due to the federal reserve dropping interest rates. It has nothing to do with the the online bank we have!
i’m new to this online banking thing and wanted to ask a couple of questions:
1) why isnt anyone talking about WaMu? I guess they offer 4.25 APY and also have physical branches. Is there something i dont know?
2) How safe is keeping money in a bank which has only a website and no physical branch? Can someone share their experiences?
Thanks!
Hi, Aaron, Chris:
I opened an account with Amtrust Direct and was locked in at a rate of 5.11% for three months. I believe you can still get this rate today (1/29). After the intro, it goes to 4.6%, I believe. Still a very good rate compared to others. I know it’s only for 3 months at this intro rate, but while the rest are heading down, I can at least be assured it will stay this rate for a quarter of the year! Also, no min. balance, $1 min. deposit.
CJ:
I just checked out Amtrust Direct and they are at 4.6% but I didn’t see anything about the 5.11% introductory rate that you mentioned. Do you have to do something special to get that rate?
I too have been looking at AmTrust Direct and the 5.11% was offered only once you went through the account opening process. My only question is that I have read some unfavorable reviews about the bank and there service. Has anyone had any experience with them and can say one way or the other?
I called Amtrust Direct and was told the 5.11% deal ended yesterday. Bummer.
Do rate go back up once other companies start to compete again? I know E-Trade and Emigrant will compete alot of times
Here’s another one to add to the on-going list.
5.20% APR for their e-Savings
OneUnited Bank
http://www.OneUnited.com
Open an UNITY Gold e-Savings account with $1,000 min to earn 5.20% APR and that rate has been in effect since May 15, 2007.
I found them by using bankrate.com today.
Well both Paypal,and HSBC currently also have a mastercard/Visa logo debit card.
I use both.Paypal is currently earning a 4.29% interest,but my online checking at HSBC isn’t paying any interest,but it is free checking.
The only catch is you must do at least one transaction every three months with the HSBC account for it to stay as free checking.
So for a few minutes at least every three months you can either add a few dollars,or withdraw a few dollars and that handicap is fullfilled.So four times a year you must either add funds,or transferr funds,which isn’t much of a requirement,as it will help you to remember your account information.
HSBC has some of the most secure features to protect your online account.
A user must first choose their account type,then they must enter a user name,followed by a password,and then in addition the account holder must then enter their account security key that can only be entered using the mouse(no keystrokes to be recorded by hackers).
A failure of any of the above will prevent access.Also if you do not remember your security key you can reset the key if you successfully answer the security questions in which you set.If you fail to answer correctly after the third attempt,the reset feature will then be disabled.
I also have two credit cards issued via HSBC and I have never had any problems with them changing the rates,all customer inquiries have been prompt,and complete.
No real probs with ETrade. It does take a week or so to transfer money from my checking account, but it does eventually get there.
I’ve only called in once and the customer service was great.
Still, you guys all have me worried.
I’ll try to ride it out.
Ian
[...] spent some time yesterday updating my list of online high-yield savings accounts. With today’s fed rate drop, yields may drop further. I’m looking for a way to make [...]
You ask if there’s any info we’d like to see added. I’d like to see a rating based on reader’s experience, where you could maintain a poll which asks each person to rate their experience based a number of useful criteria like ease of use, customer service quality, ease of contacting customer service, etc. You mention that GRS readers love ING Direct, but not why. It would be wonderful to have a link to point to people who say “I love it because…” or “I hated it because …”.
I opened an online FNBO savings account in December at 5.05% and got an email after barely a month that the rate dropped to 4.30%. Ouch! I’m looking for better options elsewhere, but won’t move until the Fed rate cuts settle down. Any insight on whether these accounts tend to go back up eventually and how soon? Also- what banks offer rates that lock in for periods of time and what sort of time frame would be about average to expect?
With US rates falling and Australian rates rising, a little inconvenience might net you a gain and reduced currency risk for holding some cash in an offshore account. Local rates here in Australia: 6.4% with ING and 6.9% with Rabo Bank.
I’ve had my HSBC account for just under a year, opened it with my tax refund last year back when the rate was 5.05%. It’s hard to ignore all the positive reviews that ING customers have. While I haven’t had any problems with HSBC, I haven’t done much other than automated transfers from my brick-n-mortar checking on payday.
Anyway I’m wondering if it makes sense just to open an ING account with a minimum deposit just to get the $25 bonus and maybe earn some $10 bonuses. What do you folks think?
Offshore accounts in Australia? Interesting idea. Is this legal for a US citizen? Are there Australian taxes to pay on the interest? I’d like to learn more about this idea. Anyone have any links to get educated on the subject?
Don, why not. It’s basically free money. If you want to get started, email me at jdick@northstar.org and I’ll send you a referral.
Brad, I’m with you. I’d like to hear more about the off shore concept.
Every 100 comments or so, someone points out that you really should add WaMu to the list. I’ve been with my high-interest WaMu savings account now for about five months and I’m very happy. The web interface is excellent, I make transfers regularly online, and also bank at the physical branches, and haven’t been hit by a single fee. Yes, you have to open a checking account, but I just put $1 in and never touched it again. I even named the account “One Dollar,” which makes for amusing email statements.
I know the personal finance blogosphere is all gaga about ING, but I really think WaMu gives you the same thing with a better rate plus physical branches.
I agree with cameron. WAMU rocks….
I’ve had an AmTrust Direct account for about 8 months now. The rate was a little higher when I first got in, but it’s really still pretty good compared to other banks. I can also make transfers to/from my checking account at Chase, which is nice (but only 6 transfers per month).
I have been with HSBC for a while now…their rate just dropped to 3.80%. Everyone’s rate seems to be dropping but it is hard to see an account go from 5% to under 4%. Today I opened a new account with OneUnited, it was really simple. I will keep both accounts open, I have no problem with HSBC other than their low rate.
I opened an account with ING last year because their interest rates were higher than those offered by other banks. Like Aaron, I am a bit dissapointed at the rate they are currently offering, but it is still higher than citi, chase, WAMU, BOA, and my credit union (just to name a few) without having to maintain a minimum/high balance. I love how easy it is to get arround their site and the speed in witch they answer your questions. I give ING an A plus
Check out these must-have websites everyone! Between the two, you get the lowdown on pretty much all the main banks, and each seems to be updated fairly often:
http://www.bankaholic.com/money-market
http://www.bankrate.com/brm/rate/mmmf_highratehome.asp?web=brm¶ms=US,416&prodtype=chksav&market=416&product=33&state=US&sort=3
Also, this is a helpful website for plugging in numbers to compare different rates over the long run:
http://www.dinkytown.net/java/CompareSavings.html
I posted earlier (#436) about my disappointment with ING. After reading some follow-up comments and doing some research, I decided to open with ETrade. Well, a week later and nothing happened, so I called today. After waiting 30 minutes on the phone (which NEVER happened with ING), I was told there was a problem with my application and it was a “good thing I called”. I canceled my application right then and there - If a bank wants my business they’ll contact me to work things out. Since then, rates continue to drop…so it looks like it’s ING for at least a little while longer unless something wonderful comes by.
Sorry for three posts in a row, but I keep finding these awesome websites. This one provides an “Interest Rate Chaser Calculator” in helping you decide whether it is worth moving your money to a new bank for just a minimal difference in rate, given the lost days of interest, instability of the new rate, etc.
http://www.mymoneyblog.com/archives/2006/10/the-ultimate-interest-rate-chaser-calculator.html
Does anyone have any additional info on One United Bank?????
DreaDrea, thanks for the rate chaser calculator. That’s exactly what I needed. I just have one more question for you all. How does the frequency of compounding factor into the equation? I’m thinking of moving a chunk of my money from ING to a higher paying site. I was thinking AmTrust Direct but they compound monthly. I also noticed that OneUnited Bank compounds quarterly. Thanks in advance for your guidance.
I just found this site that answers my own question:
http://www.mymoneyblog.com/archives/2005/09/interest_compou.html
APY means Annual Percentage Yield. So if Bank A compounds daily and Bank B compounds quarterly, but both have an APY of 4.25%, then the compounding period becomes irrelevant… because the end result is the same. That is why APY become the standard instead of just citing “the Interest Rate”. For example, Emigrant (when I last checked) had a 4.21% daily interest rate, but reports 4.30% APY as that is what you’d get if the deposit was left in the entire year. If they paid quarterly, they could advertise probably a 4.24% Interest rate. APY is the great equalizer to stop the games.
The caveat is that if the account isn’t compounded except quarterly, when you withdraw your money 60 days into the quarter, you can lose 60 days interest. You don’t actually have the money earned until you reach the 90 day mark.
For these types of fluid accounts, I’d stick to one that “compounds daily, pays monthly”. I’ve never seen one to actually pay daily.
Here’s a good site to explain it:
http://banking.about.com/od/savings/a/apy.htm
Thanks Brad. I was wondering if one would lose out on interest by withdrawing funds during the period and you confirmed it. I’ll stay away from OneUnited.
[...] the rest of the money in a safe account. Put it someplace that will earn you interest while you decide what to do with [...]
WHERE WILL I MAKE MORE UPDATE…
With the market changes this past week I thought I would update the “Breaking Points” for the savings accounts as I mentioned earlier on this board. Please read my earlier post #388 and #395 for further explanation. Remember the key though if you are investing less than the figures below is to do it through the referral link.
I have recieved emails questioning whether it is better to open an ING account and get the upfront $25 and only 3.4%APY or open one with higher APY. So I did a little math and broke it down. This only reflects 1 year of earnings.
With the following banks and their current APYs you would make more in interest with ING unless you can open and maintain the balance I have listed here…
Etrade (4.4%) $2,500.00
iGO Banking (4.2%) $3,125.00
Emigrant (4.05%) $3,846.15
HSBC Direct (3.8%) $6,250.00
Citibank (3.5%) $25,000.00
Capital One (3.5) $25,000.00
If you have the ability to open your account with more than the balance listed above, and maintain that balance for the entire year, then it is in your best financial interest to open one of the above listed banks. If you do not have at least $2500 (I don’t) to start off, then you will make a better return this year with ING Direct. That is why I opened one for my personal savings, and still have my payroll in a higher yielding account (it is in the thousands per quarter).
Blessings,
Alicia
If you do not have a lot to start saving, but you are interested in doubling your savings in one year (or less) you can read how it is possible in post #366.
I have always banked with Etrade (also have IRAs there), so I opened a savings account there when the interest rate was at 5% or so. The customer service is GODAWFUL. Lately, though, it’s gotten better, but I do believe that’s because there is an alert on my account.
Wow everyone seems to agree on this thread that the customer service at Etrade is very bad. I have read it several times on here.
Hi, I want to open a high yield savings account and noticed that AmTrust Direct offers an APY of 4.6%, does anyone have any comments on AmTrust? Also, is there a difference between Money market accounts and high yield e-savings accounts? many banks have different rates depending on which one you want to open…thanks
Hi Sylvia, I was tempted by the 4.6% at AmTrust as well, but read some very negative reviews of it on bankaholic.com. I am considering Savings Square (savingssquare.com) which is offering 4.5% APY, $1 to open, no minimum, no fees, and seems to have a user friendly site. However I can’t find any reviews of them anywhere. Anyone have any experience with this bank?
Karen:
How funny! I, too, was considering savingssquare. Of course, just 2 weeks ago it was 4.8% and now it’s 4.5% and will probably continue on it’s way down with the others. I haven’t seen anyone on this site mention it in all of the 500 posts, but I happen to find it through an internet search and all sites referencing it all pointed out how bankrate gave it 4 stars. So that was my first interest. When I went to the website, I found their site neat and user friendly as well. And I read all the FAQ and small print and was still interested.
But all this being said, as we have seen over the last 6 months, everything is changing and continues to change. Shoot, savingssquare could be 4.0% tomorrow! Or even worse.
I’m no economist or financial expert, but sounds like we all need to wait things out as best we can and see where the dust settles (if it does) before we make any big decisions. You should check out my posts on 466, 467, and 469 for some helpful sites on comparing banks, updated interest rates, and a helpful calculator for switching banks. I’m currently at KeyBank and have been for 6 months. See my detailed post on 426. The interest rate is now 4% but you have to look at multiple factors besides just rate.
Sorry for the long post guys!
Karen:
Also, here are some blogs/threads on savings square:
http://www.americanconsumernews.com/2007/08/banking-reviews-savings-square%e2%80%99s-no-minimum-online-savings-account.html
http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=772455
http://www.savingadvice.com/forums/investing-banking/31608-savings-square.html
(especially towards the middle of the page)
These sites will of course be referring to slightly higher rates that SS had a few weeks ago, but they are helpful as to info about SS in general that you were looking for
DreaDrea, thanks for the great links! I have an account at ING, and I like them but they are now down to 3.4% which is disappointing. After reading about Savings Square they seem to have good reviews and one of the more decent rates at the moment, so I’ve started an application with them and I’ll let you know how I like them.
Is Oneunited a good savings plan? I see they are offering 5.15% APR with a minimum balance of $1,000. Anyone have this and think it is good, I need to get out of ING, ING just isnt cutting it anymore with the constant lowering of rates. I noticed Alicia did not have this on her lists of banks with top %, and I am not sure why since it is 5.15!!!
HSBC is now at 3.55%.
I also decided to open an account with Savings Square. I am not giving up on ING but I’m moving a decent chunk of money to get a better return. The application process with SS was quick. However, be prepared to answer questions about items on your credit report such as mortgages, auto loans, etc. They use this info to verify your identity. They also have an option to avoid using small deposits to verify your account by instead providing the ID/pw for the linked account. This seems a little scary but I opted to use it against my better judgement. From start to finish, my application was approved and the external account linked in less than 10 minutes. However, it doesn’t seem that I can access my account yet. I was provided with a reference number but I don’t have an ID/pw. I’ll add another post if there is anything significant to report.
FYI:
We are writing to inform you that based on the recent drop by the Federal Reserve, HSBC Direct has adjusted your Online Savings Account rate to 3.55% APY*. At 8x the national savings average**, you are still earning one of America’s highest savings rates.
All of these high yield accounts are going to drop the rates until the interest rates go back up.
But what I would like to say, is with high interest earning accounts there has to be other rates that are affected as well. I mean the lending rate will be higher, the cost to finance with cars will be higher as well.
Yes I would like to earn more with savings, but at the same time, I would like borrowing rates to drop. You cannot have it both ways. But 3% or so is better than all of your brick and mortar banks and most credit untions.
James, the thing to consider with OneUnited is that they compound interest quarterly. See Brad’s post #473 (Feb 1 2008) for a scenario on how you could lose out on 60 days of interest.
Thanks Jeff, yea I saw that. I am getting out of ING the rate is just too low. I have narrowed it down to 3, can someone help me pick one?
E-Trade* (have not heard great things about service, but does it really matter, savings are savings to not really touch often that being said I dont need to touch my savings for at least 6 months, if even at all in a years time, I usually save to save and dont want a way to withdraw with an ATM because that defeats my savings goal of not spending savings. This does have a GOOD RATE
IGOBanking
Emigrant
Would also consider any other ones you think are better? Like I said above, I do not need a ATM card and dont see myself making many if any withdrawals on this account for a year or so, if not longer, if that helps give you a background of my goals. I also have about $10,000 to switch into a savings account from my current ING direct account.
Looks like most of the dust has settled (for the minute). Zions ($1000 min) is still 4.18% APY and that is still close to the top of the 6 that I follow.
Only IGo Banking is currently higher at 4.20% APY. If you need the ability to initiate ACH to move things around, IGo is easier (with daily limitations that they will adjust for you if asked).
The Zions Deseret account, however, gives you a few checks (but no ACH initiation capability). They also will give you an additional free checking account with a debit card. Minimal interest in the connected checking account, but easy to move (online) from Deseret to Checking if you find you need a debit card or to write more than the few checks allowed on Deseret (3 per month I think).
Last I looked:
ING 3.40%
HSBC 3.55%
UFB Direct 4.00%
Emigrant 4.05%
Zions 4.18%
IGo Banking 4.20%
I’ve had no hassles to report with any of these…
James,
If you’re not needing liquidity, I suppose a CD would be fairly competitive interest rate-wise. I have accounts with FNBO, Emigrant Direct, and ING. Truthfully, ING is for my kids to foster an interest in savings. FNBO has currently settled down to 4.3%, and while setting up the account was a bit slow for my liking, that’s a pretty competive return and I have no issues to report. Emigrant has been a solid account for me. I think they have a track record for relatively strong interest rates. And I recently needed to move some money from there to my brick and mortar account, and it was there the next day.
Why is nobody talking about WAMU. Its giving 4.25% APY, debit cards, B&M presence in major states.
I’m with