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Online savings and CD accounts
Old 07-03-2012, 06:58 AM   #1
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Online savings and CD accounts

Hello Everyone,

I was wondering if anyone had experience with online savings accounts or CD. I am looking for a place to build up a cash reserve. Maybe get a little better return. What has been your experience? Who do you use?

Ally Bank?
ING?
MetLife?
Discover Bank?
Any others?

Any advice would be welcome?
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Old 07-03-2012, 07:07 AM   #2
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Quote:
Originally Posted by Paws View Post
Hello Everyone,

I was wondering if anyone had experience with online savings accounts or CD. I am looking for a place to build up a cash reserve. Maybe get a little better return. What has been your experience? Who do you use?

Ally Bank?
ING?
MetLife?
Discover Bank?
Any others?

Any advice would be welcome?
Over the years I have used a bunch, ING, EmigrantDirect, FNBO, HSBC and DollarSavingsDirect.

I have never had any issues, transfers in and out have been easy and all take about 3 business days to process, 1099's were easy to access too. As long as they are FDIC insured I would just go with the best rate but with rates so low I don't think it matters. Pick the one you like best.

http://www.consumerismcommentary.com...ings-accounts/

As one comment on the the link above noted, lowest min balance is probably more important in this interest rate environment than a fractional point higher interest rate.
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Old 07-03-2012, 07:25 AM   #3
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I have used ALLY for years for an online insured savings/money market account. Of course it was formerly GMAC. I have them linked to my Bank of America checking account and transfer money back and forth as needed. Depending on the time of day you enter a transaction, it takes two to three days for a transfer. Last one took two days. I can write checks against ALLY account if I need to but almost always use on-line banking.

No minimum balance. Maybe $100 to keep account open.
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Old 07-03-2012, 08:13 AM   #4
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ING. Nothing to write home about, but still earning 0.8% beats Wells Fargo's 0.1%. Linked to WF account. Takes about 3 days for a transaction, but pretty easy with proper planning.
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Old 07-03-2012, 09:02 AM   #5
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Ally. 5 yr CD's. Two month penalty for early withdrawal. You come out ahead over online savings after just a couple of months. I keep a little bit in the savings account for swings in spending, auto withdrawal from my kid's 529 etc.
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Old 07-03-2012, 09:09 AM   #6
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I have had an online savings account with DiscoverBank for over a year and have been pleased. Started ~ 1.0% but now .8%. Service has been good.

TIAA Direct is a new player and is offering 1.24% last time I looked on regular savings to attract deposits.

From what I've seen the online savings accounts offer a better return and don;t lock up your money like a CD does.
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Old 07-03-2012, 03:11 PM   #7
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We've got both savings and CD accounts with ING, for going on 6 or 7 year now. They are linked to our local 'brick & mortar' bank for transfers n or out, which normally take about 3 days. I have a monthly automatic transfer from our local bank into my ING account at a set amount, that is for future car purchases.

1099 forms are downloadable PDF files.

We've had absolutely no issues or problems with ING.
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Old 07-03-2012, 04:21 PM   #8
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The Fatwallet forum keeps threads up to date for various rates, here's a link to the CD thread:
CD Thread, Post The Best Rates You Can Find Here!--Best Nationally Available Rates--

I usually try to balance the rate vs having too many accounts at too many places, so I usually don't bother getting the best rate, but try to get close at the places I already have accounts.
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Old 07-03-2012, 04:25 PM   #9
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American Express Personal Savings - Excellent service and rates are currently 0.85%. Also FDIC insured.
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Old 07-03-2012, 11:12 PM   #10
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Quote:
Originally Posted by Paws View Post
I was wondering if anyone had experience with online savings accounts or CD.
Any others?
Any advice would be welcome?
Does PenFed have a brick & mortar branch? I've only done business online with them, and I have no idea which category they fit into.
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Old 07-04-2012, 06:08 AM   #11
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Does PenFed have a brick & mortar branch? I've only done business online with them, and I have no idea which category they fit into.
Two of them near you:
Fort Shafter and Tripler AMC

I used to enjoy using their main location when I worked in the Pentagon, and there are five other locations in DC.

Also Alexandria and Arlington Virginia, Fayetteville NC, Hanover MD, Killeen TX, West Point NY, and Puerto Rico, Guam, Turkey, Japan and Portugal.

ATMs all over.
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Old 07-04-2012, 06:58 AM   #12
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Ally. 5 yr CD's. Two month penalty for early withdrawal. You come out ahead over online savings after just a couple of months. I keep a little bit in the savings account for swings in spending, auto withdrawal from my kid's 529 etc.
I've had a checking and savings account with Ally for years and they have provided good service. I am also using this 5 yr CD strategy with them for a chunk of cash.
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Old 07-04-2012, 12:44 PM   #13
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ING for years. Parked a lot of money there when I was thinking of buying a house (which I ended up not doing.) Interest rate then was very high (around 5%) and now earning less than 1%, but still better than BofA. Moved some money to Discover CD and Vanguard (index funds). Still have like $25K sitting there. It takes a couple of days to transfer money to my BofA account, but that's fine with me.
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Old 07-04-2012, 01:10 PM   #14
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Two of them near you:
Fort Shafter and Tripler AMC.
Hunh. I guess I knew about Fort Shafter, but I'd have to hunt for both of them.

And Tripler?!? "Honey, it's not stressful enough here in the hospital, so let's go visit the credit union"...

NFCU has actually been cutting back on branches & ATMs around here.
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Old 07-04-2012, 03:17 PM   #15
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Have used both Discover bank and Ally (GMAC) for years. No complaints. Both have 24/7 live bodies available on the phone , here in the us, not offshore.
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Old 07-10-2012, 03:10 AM   #16
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I buy all my CDs with Edward Jones. I like the service I get (discussed recently in another thread also).
Quote:
Originally Posted by Paws View Post
Hello Everyone,

I was wondering if anyone had experience with online savings accounts or CD. I am looking for a place to build up a cash reserve.
Any advice would be welcome?
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Old 07-10-2012, 08:59 AM   #17
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INGdirect has been bought by CapitalOne, so there may be changes to both.

For reasons beknownst to themselves, TIAA-CREF's bank seems to be the yield leader for an online savings account and has ben for some time. However, the highest yielding name regularly changes so if you don't fancy switching banks all the time to chase yield, you might just want to piuck one of the perenially highest yielders and stay with it.

I have actually been moving money out of my savings account (have been using Cap One) to try to find better yields elsewhere. I bonds have been a favorite lately, although from time to time a decent opportunity in a CD pops up. Otherwise, it is watch and wait.

There is a nice summary write up about chasing safe yields here:

Life, Investments & Everything: Where to Invest "Safe" Money?
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