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Online savings accounts
Old 07-19-2008, 02:55 AM   #1
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Online savings accounts

Just wondering if anyone tried out the online savings accounts like HSBC.

I noticed that they are paying 3.5% interest right now and that is about like having a 9 month cd.

And they are FDIC insured.

I thought this might be a better place to park short term cash than in Vanguard and Fidelity MM accounts.

Mine right now are yielding like 2.2% and 2.5%.

One of the only things is I trust Vanguard and Fidelity way more than these online savings banks...but they are FDIC insured.

Jim
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Old 07-19-2008, 06:15 AM   #2
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I have ING and I've never had a problem. But I'm new to this whole trying to manage money thing, so I couldn't say whether it's the smartest move.
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On-Line Savings Accounts
Old 07-19-2008, 06:43 AM   #3
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On-Line Savings Accounts

I have used several on-line savings accounts since 2005 without problem, ING Direct, Emigrant Direct, HSBC Direct and FNBO Direct. They all take a little time and effort to set up. They all "link" to an existing checking account at my local bank. It only takes a few days for money in or money out. All are FDIC insured. Currently HSBC offers the highest rate of 3.5% APR but I believe that is promotional and ends in August. FNBO (First National Bank of Omaha) has held steady with the highest non promotional rate of this group, currently at 3.5% APR. I keep my short term cash in them. Although I am not using ING or Emigrant at this time I keep them open with a $10 balance so I can use them quickly if rates change and or need to stay below FDIC limits in one account.
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Old 07-19-2008, 06:50 AM   #4
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I have used several and currently use HSBC. The 3.5% rate has been in existence for some time but may change in August (according to the Advertisements I have seen). I also have accounts at ING and Emigrant which I have used in the past. Never a problem with any of them and they are all FDIC. However, they take a while to "complete" transactions so the "float" IMO is excessive but then again they are Banks. Funny how Banks can "debit" a check almost immediately but take up to 5 days to credit a ACH transfer.
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Old 07-19-2008, 09:10 AM   #5
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I haven't stepped foot in a bank in years. Online banking is the only way to go. You can check the FDIC insurance and general ratings online. If you're looking to park cash in a safe place I savings bonds are currently paying 4.84% and you don't have to pay state income taxes on the profits. You pay no taxes until you cash them in. They do have some limitations. Check out the treasury direct site.
Individual - I Savings Bonds
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Old 07-19-2008, 09:13 AM   #6
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Quote:
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I haven't stepped foot in a bank in years. Online banking is the only way to go. You can check the FDIC insurance and general ratings online. If you're looking to park cash in a safe place I savings bonds are currently paying 4.84% and you don't have to pay state income taxes on the profits. You pay no taxes until you cash them in. They do have some limitations. Check out the treasury direct site.
Individual - I Savings Bonds
I also use I-Bonds through Treasury Direct - very easy to use. I also use Bank of Internet (3.46%) and HSBC on line in the UK fo my UK pension (5.35%).

All easy to use and manage.
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Old 07-19-2008, 09:15 AM   #7
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Pete, thank you for that!
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Old 07-19-2008, 09:21 AM   #8
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Pete, thank you for that!
Note that April this year the rules changed so that an individual can only buy $5k/year of I-Bonds. Also you can't withdraw for year 1, then years 2 thru 5 there is a 3-month interest penalty.
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Old 07-19-2008, 10:31 AM   #9
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E-Trade $25 bucks for new account $1 minimum to open & no fees

etrade is offering a 25 dollar sign up bonus right and prefer their transfers over HSBC....depends on how often you transfer but HSBC take 3 days..
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Old 07-19-2008, 12:32 PM   #10
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+1 for ING. We use it for our ES and other near term needs. We have a regular checking account for most monthly bills.

DD
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Old 07-19-2008, 12:44 PM   #11
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Find out if your bank offers a high interest savings account. My bank www.scotiabank.com offers a Money Master account which operates completely online and is linked to my regular checking account. Transfers between the two are instantaneous. Interest rates are lower than at ING/HSBC but the convenience factor makes up for the difference.
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Old 07-19-2008, 12:47 PM   #12
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I've used online banking for eight or nine years now. I can remember back when payday meant everyone had to go the bank and deposit their checks. The only good I got out of that was flirting with the cashiers.

The first online bank I used was Netbank. Never had a problem. They were in the same town I lived in at the time and one day I decided to try and go make a deposit in person. When I walked into their offices and asked to make a deposit, they looked at me like I had just shouted a muslim prayer on an airline. They were so geared up for online banking, that they had to stop what they were doing and fill out some extra paperwork to accept a check from a walk-in customer. I could have used the ATM outside, but I just wanted to meet the people I had been doing business with for the past several years. They were very helpful.

Netbank went under and their assets were assigned to ING. It was a seamless transition. At ING, I have a no fee, low interest, checking account as well as a savings account that currently pays 3%. I keep most of my cash in the high interest savings. I can move money form checking to savings with the click of a button online and it's effective immediately. I also have an Emigrant Direct account linked to DWs checking account and we can transfer money back and forth but it is delayed by a day or two. I used to use Vanguard for most of my cash, but now I use ING and Emigrant Direct. I personally like ING better. One other thing, ING has lots of ATMs all over the US. Just look up ATM locations on the ING website and you can see where the ATMS are located. The closest one to my house is within walking distance at a Walgreen drug store.
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Old 07-19-2008, 01:34 PM   #13
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ING is also interesting because they bought sharebuilder where you can buy stocks for 4 dollars. Some limitations there too check out the site.

ShareBuilder from ING DIRECT: Account Overview
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Old 07-19-2008, 01:48 PM   #14
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I used ING for about a year then switched to Emigrant Direct when their rates were higher than ING. I've been with Emigrant Direct for a few years....maybe 3 or more and have had no problems.

I find one year's income in Emigrant in December and move my monthly expense money into my regular checking account. Works great for me.
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Old 07-19-2008, 02:26 PM   #15
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I have ING, Emigrant Direct and FNBO. They all work about the same except that FNBO can take longer to transfer money out, like 2 days longer. Also, FNBO doesn't allow transfer between 2 FNBO accounts which is just STUPID. Last time I looked FNBO was at 3.50% and ING at 3.00%. Emigrant and ING are both great to deal with and transfer quickly and allow transfers between their own accounts.

Another one to look into is Amtrust Direct https://www.amtrustdirect.com/Pages/default.aspx which is the e-bank for my local Amtrust Bank in northeast Ohio. They usually have a good rate on CDs or an online savings account.
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Old 07-19-2008, 02:44 PM   #16
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We've had an ING savings account for a little over a year. It works flawlessly and we have no complaints.
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Old 07-19-2008, 09:03 PM   #17
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I've used ING, IGOBanking, HSBC, FNBO, and E*trade. I love ING, the interface is easy, can set up multiple accounts (vacation, new car, taxes and insurance, etc), transfers between brick and mortar credit union much faster. All the others would have much longer transfer times, some up to 5 days!!
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Old 07-19-2008, 10:07 PM   #18
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We have two separate savings accounts & some CD's at ING Direct. I've been with them for about 3 years, and have never had any problems or any complaints with them.
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Old 07-20-2008, 06:59 AM   #19
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I have had ING and HSBC accounts for several years. Easy to use and transfer $ and better pct than a bank cd.
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