Zion's Bank?

[Scrooge]

I am thinking of opening yet another online account now that my EmigrantDirect and HSBC accounts are maxed. Anybody happen to have dealt with http://www.zionsbank.com/ , by any chance? They have competitive interest rates, but how are the user interface and customer service? Good, bad, ugly, indifferent?

 

[LOL!]

For what purpose?
May I ask what a competitive rate is nowadays?

 

[Cut-Throat]

I am thinking of opening yet another online account now that my EmigrantDirect and HSBC accounts are maxed. Anybody happen to have dealt with http://www.zionsbank.com/ , by any chance? They have competitive interest rates, but how are the user interface and customer service? Good, bad, ugly, indifferent?

The rates on Zion looked a bit low compared to Emigrant. Have thought about ING?

 

[LOL!]

ING rates are relatively low as well. Vanguard Prime Money Market was 5.07% last week, so any online bank has to beat that IMHO.

 

[Cut-Throat]

ING rates are relatively low as well. Vanguard Prime Money Market was 5.07% last week, so any online bank has to beat that IMHO.

Yeah you're right ING is low. - I just looked!

I'd also probably go with Vanguard MM.

 

[MJ]

Don't forget Citi eSavings @ 5%

 

[Scrooge]

For what purpose?

Well, I am (and have always been) 100% in cash and cash equivalents. Call it an endearing quirk, if you will   Since I have close to $100K with EmigrantDirect and approximately the same amount with HSBC, there is nowhere for my new money to go. My local checking account is well into the 5 digit range and I would like to open a new account that would be earning more than 1-2%.

May I ask what a competitive rate is nowadays?

Any FDIC insured account that pays as much as TreasuryDirect's 4 week bills or a close approximation thereof is competitive in my book. I just pull all MMAs up at BankRate.com and sort by rate. Zion is pretty close to the top and doesn't require me to maintain a big balance, so I figured it might as well be my next choice if their customer service is decent.

Vanguard Prime Money Market was 5.07% last week, so any online bank has to beat that IMHO.

Don't forget Citi eSavings @ 5%

Thanks, I'll investigate! BTW, are Vanguard's MMAs FDIC insured?

 

[saluki9]

Thanks, I'll investigate! BTW, are Vanguard's MMAs FDIC insured?

No, but all they buy is 90 day tbills or shorter.


If the US defaults on tbills I'd say you have bigger problems than your investments

 

[Martha]

Money market funds offered by brokerages are not FDIC insured. In contrast, a money market account offered by a bank probably will be FDIC insured. A credit union will have similar insurance under FCUA.

 

[d]

I just pull all MMAs up at BankRate.com and sort by rate

i expect you'll find better rate info at http://www.fatwallet.com/t/52/437553/

Vanguard Prime Money Market was 5.07% last week

apples to apples ... that's a "7-day yield" ... MMAs usually quote the annual yield (VMMP apy approx 5.2%)

 

[Scrooge]

No, but all they buy is 90 day tbills or shorter.

If the US defaults on tbills I'd say you have bigger problems than your investments

Granted, but is this fund separate from Vanguard's other holding? Will I still get my money back if Vanguard goes belly up after investing in tulips? 

expect you'll find better rate info at http://www.fatwallet.com/t/52/437553/

Thanks, I'll check them out

 

[REWahoo]

Granted, but is this fund separate from Vanguard's other holding? Will I still get my money back if Vanguard goes belly up after investing in tulips?

That question has been discussed several times. Here's a sample thread:
http://early-retirement.org/forums/index.php?topic=3508.0

 

[BarbaraAnne]

If you have over $50,000 to invest try Countrywide Bank. They are paying 5.25% and are FDIC insured.   You have to link it to your bank account to get the 5.25%, just like ING or Emigrant. We have been very happy with the service.

Here's the link http://my.countrywide.com/

Edit: The product is called SavingsLink.

 

[LOL!]

Cut out the middlemen and invest directly with the US Treasury. www.treasurydirect.gov

But I don't think you will get your money back if the US Government goes belly up.

 

[Scrooge]

That question has been discussed several times.  Here's a sample thread:
http://early-retirement.org/forums/index.php?topic=3508.0

Looks like the key section is:

The only concern might be cash in the account, which they typically insure for a million or so.   Second, I think Vanguard has built a structure in which each fund is a stand-alone entity with joint ownership in the Vanguard Corp.

Sounds like a good start, I'll follow up with Vanguard 8)

Here's the link http://my.countrywide.com/

Edit:  The product is called SavingsLink.

Thanks, I'll add them to my hit list

 

[laurence]

Scrooge, your entire portfolio is cash or cash equivalents? And it's always been that way? Are you just that good of a saver that you don't need the ROI to ER?

 

[Scrooge]

Scrooge, your entire portfolio is cash or cash equivalents?  And it's always been that way?

My taxable accounts and my 401k are (and have always been) in cash. The rest of my NW is in my house, which is made of wood and cement since I am yet to figure out how to live in cash 

Are you just that good of a saver that you don't need the ROI to ER?

Well, I live on $15-20k/year in a rather expensive part of the Mid-Atlantic region. In another ~3 years, when my NW is about $1mil, I should be able to retire in a less expensive part of the country on, say, $13-14k/y plus health insurance (always a big unknown). It helps to be single and cheap, in that order 

If I had to pull the plug now, it would still be borderline doable, although I would have to rely on roughly 60-70% of my estimated Social Security benefits later in life. One of the reasons to keep working for another ~3 years is to see which way Medicare winds blow. Medicare means testing would change a great deal in terms of ER...

 

[astromeria]

Zion's Bank...must be where Larry Fishburne keeps his loot :

 

[scrinch]

There's a promotional 11 month CD at Redwood Credit Union in the north SF Bay area. The APY is 5.55% for $10K and 5.7% for $100K. I've banked at the CU for 20+ years, so I can vouch for its legitimacy. Try redwoodcu.org.

 

[baldeagle]

I've had several Zions MMAs for 2-3 years now.  Interest rate has tracked Fed changes quickly, and is currently 5.13% with $1K minimum, I think.  Service is good, and I'm a happy customer.