So I'm going to be moving most of my funds to an online savings account. My question is...which one do you prefer and why? I don't really know the major differences between the two. They seem like they are the same thing, but I'm assuming that maybe people have had better support or experience at one over the other.

Here are the rates:

ING Direct: 4.10%
HSBC Direct: 4.25%
Emigrant Direct: 4.55%

How do they determine what the rate is each month? How can one be higher than the other. Right now, it looks like HSBC is a better choice just because of the higher rate.

Any input would be appreciated.

WIL

 

I had just opened a WAMU account, its 4.9%.

 

I have an FNBO Direct account and I am very happy with it. 5.05% I have had it for about 6 months. And I just opened a 9 month CD with them for 5.25%, although the rates have gone down since then. I did my research and they are reputable and they are FDIC insured.

 

Are you moving > $10K?

 

Unfortunately not. Spending habits have dwindled my Money Market account, hahaha. I am trying to be better at saving and this is one step...though I am looking to get a new bike in the Spring...

 

All numbers are calculated for a year span.

$5000 @ 4.1% = $205
$5000 @ 4.25% = $212.50
$5000 @ 4.55% = $227.50

With that being said I use ING and have no complaints about it. I direct deposit my work checks into the account and can transfer any amount I wish to my Wachovia checking account and/or my Fidelity investment account.

 

That's exactly what I was thinking. I might as well be safe and go with ING Direct since the return is not that big of a difference.

Thanks for the input guys. I actually just created my ING Direct account and transferred everything in my Money Market over.

 

FDIC insurance isn't everything. If you really want to protect your money, I'd be looking for institutions that have high Triple A ratings across the board from respected rating agencies and look at the company reserves.

Research FDIC Solvency and you'll see there's not much protection there.

In addition, with CD's, you really need to consider your tax bracket as well as the rate of inflation. Soon, that 5%+ rate isn't looking to great.

Here's a start regarding FDIC:
The FDIC: Worse Than Useless
Permalink Posted on 11-29-2006 at 09:44:22 am by Aaron Email , 1002 words, 4306 views

http://www.autodogmatic.com/index.ph...e_than_useless


On the other hand, if you insist, I offer this:
http://www.bankrate.com/brm/rate/mmm...pro_invest_all





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wait until february to make your move. fed just cut rates and there is speculation they might cut again at their meeting

banks etc will adjust their rates based on the feds action but the banks control their rates so the bank with the highest rate now might not have the highest rate here in a few weeks. would suggest waiting until they release their new rates

 

He's already done it, and it really doesn't make that much difference unless you have a lot of money to invest. $20-$40 isn't worth removing his money. If it were $150 then yes.

 

Yeah, too late now. I went with ING Direct...

 

I am kinda of confused with cd rate. The question is if i get a 6 month cd with a example 6% APY. Do I get the 6 Percent and once it over the 6 months can I get do it again and gain back the 6% making it 12 percent for me doing it two time.

 

I just got an email from HSBC yesterday saying the online savings rate is now 3.8.
It was 4.75 when I joined

 

My WAMU saving account dropped from 4.74 to 4.25 today.

 

Lets say you have a $1000 CD @ 6% for 6 months compounded monthly.

After 6 months you will have made $30. If you reinvest the $1000 into an exact CD then after 6 more months you will get another $30.

If you have a $1000 CD @ 12% for 12 months compounded monthly you will get $120 of interest.

So no it is not the same.

 

My FNBO has gone down from 5.05% to 4.3%

 

Damn, ING Direct went down to 3.65% from 4.10%. Ah well...its still better than 2.2% that I was getting through DCU Money Market.

 

^^ Noticed this yesterday too. That sucks. But, I was only getting .5% from my CU anyways

 

I just got an email from HSBC saying now their rate is 3.55%.
That's the second decrease in a month.
Fucking interest rate cuts.

 

Freakin' ING Direct is down to 3.40%

 

yea, told ya you should wait hah but it was already too late. ING always is the most conservative with their rates, ie: after a cut, they reduce fast and way too low. but, all the rate cutting by the fed doesn't help things either.

FNBO direct and i think wash mutual are some of the highest usually... at least always higher than ING and the like

 

There really is no difference between the 3.55% & 3.4% UNLESS you have $50,000+ in your savings account.

$10,000 @ 3.55% = $355
$10,000 @ 3.40% = $340

Even if it were $50k it would only be $75 difference...

 

Well, that's not compounded interest, but your point is true. The small interest numbers difference don't really mean much, even if you have a lot in there.

 

^Yeah very true. Still won't make that much of a difference like you said.

 

E-Trade is still paying 4.1%

 

We should start a mutual fund thread and stop bitchin'

 

oops 3.45% today

 

Its now down to 2.96%...

It was at 3.59% in January...

 

yay another email from hsbc about my savings account % dropping once again.

 

ING Direct is suckin a big one... i think i will move to WaMu... at least they are still showing above 3%... my monthly interest payment has just dropped over 75$... god... i need to find a nice house and put my money there...

 

You guys remember when savings accounts actually had nice interest rates?

HSBC down to 2.6% I guess it's to be expected when the Fed is basically making interests rate close to zero.

 

 

ING isn't any better, but neither is any of them. Your lucky to get 4% back on any type of account.
When our economy sucks it hurts everyone.

 

Rates aside (since they all suck now) -

I'm wondering if other online banks transfer money and have them available for withdrawl faster than ING Direct. Two days to transfer isn't a huge deal, but I don't understand the need for a 5 budsiness day waiting period before funds are available for withdrawl.

Do other banks do this?

 

I just did a transfer out of ING and my money was out within 2 days

 

I believe its pretty standard for all online banks. You can transfer money into the bank which takes 2-3 days, but then they require another 7 days before you can take it out again.

But, if you want to take money out of the online bank, it takes only 2-3 days to transfer I believe back.