Comments on: How to Choose an Online Savings Account

By: CalLadyQED

CalLadyQED — Mon, 23 Feb 2009 20:16:43 +0000

I have and Orange Savings Account w/ING. They do NOT offer ATM access. You have to get the lower interest checking account (Electric Orange) for that. Also, ING has drop there rates several times in the last few months. They’re giving me 1.85% now. I’m getting out.

By: David S.

David S. — Thu, 19 Feb 2009 05:34:01 +0000

Don’t forget about GMAC Bank. Now with a 4-star rating, an actual “bank” status, and soon (this year) to get a name-change ridding itself of the GM affiliation.

GMAC currently offers two no-minimum accounts: online savings, with a 2.75% APY, and money market, with a 2.25% APY. The money market comes with checks and a debit card (and they refund a limited amount of ATM fees). Customer service has always been good, online banking interface is simple and clean, and transfers are FAST (often next-day).

My only complaint: no electronic statements option. It would only SAVE them money, but oh well.

By: The Passive Dad

The Passive Dad — Fri, 13 Feb 2009 23:56:42 +0000

I’ve enjoyed using ING for the past year, but also feel frustrated watching our savings rate dwindle. I hate to move after a year to another bank, but might consider another option if rates continue to fall. BTW, have you noticed rates falling for HELOC? Our line of credit is at 3.25% Unbelievable.

By: Mike J

Mike J — Thu, 12 Feb 2009 14:12:51 +0000

GAH!! DollarSavingsDirect just dropped their rate AGAIN . . . this time to 3.05%.

I moved all but the minimum balance for DSD into my rewards checking at 5.01%, hooray!

-Mike J

By: thomas

thomas — Thu, 12 Feb 2009 05:07:11 +0000

Unless you are operating in the 10’s of thousands range, rate hoping may not be worth it. Back when regular banks were offering 3% and online rates were in the 6%+ range, it was a practical goldmine. Rates have really dropped lately, so getting even 1/2 a point higher doesn’t have as much value. Security, service, and convenience are what to look for now.

By: SuburbanDollar

SuburbanDollar — Thu, 12 Feb 2009 04:08:43 +0000

@PR
The main thing you need to watch out for is to make sure you do not exceed the transfer limit on your savings account, by law I think you can’t transfer out more than 6 times a month or something like that so moving money through the savings accounts to each other could get you into trouble.

By: PR

PR — Thu, 12 Feb 2009 01:01:41 +0000

A question for you online banking pro’s out there —

I have accounts with ING Direct and Emigrant Direct. Based on this article, I opened one at DollarSavingsDirect because the interest rate there is higher with DSD than the others (by at least 1% for ING, and nearly that for Emigrant Direct).

Here’s the thing – I try not to have too many online accounts linked to my brick and mortar checking account. So, I’ve been linking one online savings account to another one, and using one account as the ‘funding source’ for another.

Every online bank seems to ask for a b&m checking account for funding, but I just put in the routing and account info for my online savings, and it seems to work fine.

Am I asking for trouble by linking a bunch of online savings accounts together when the banks clearly ask for a b&m checking account?

Thanks in advance for your input.

By: Craig

Craig — Wed, 11 Feb 2009 19:17:06 +0000

I am doing research and planning on setting up my first online bank. I have read a lot of good testimonials from both ING and FNBO Direct. Is there any losing situation by picking one over the other?

By: nickel

nickel — Wed, 11 Feb 2009 18:53:17 +0000

brad: Good point. E*Trade bank is likewise integrated with their brokerage account. I’ll try to add this in somewhere.

By: brad

brad — Wed, 11 Feb 2009 18:30:44 +0000

It wasn’t mentioned in the article, but one of the nice convenience factors of ING is its integration with Sharebuilder Online Stock Brokerage Account. ING bought Sharebuilder a few years ago and you can link your Savings and Brokerage accounts together. So, if you want to make a stock purchase, or transfer the money you made on a sale to your savings…you can make these transfers instantly. No waiting a day or two for the transaction to go through.

I guess this benefit all matters on whether you already have a brokerage account that you like. Sharebuilder from my experience is not bad. If you’re in the boat of wanting to open a brokerage account and have ING or are looking for an online savings account..then its worth checking out.

By: Angie

Angie — Wed, 11 Feb 2009 16:48:13 +0000

I use ING with subaccounts and FNBO Direct for savings. Not only because FNBO has a higher rate, but the couple day delay between transfers lets you forget about the money in there and leave it alone.

Can’t beat the ING Electric Orange. Sends paper checks for you? Totally Awesome. I’d really appreciate a more user friendly interface though. Like being able to forecast your balance out based on set transfers. Overall its a little clunky but it does EVERYTHING.
The lower rate doesn’t come that much into play with lesser amounts in there.

By: nickel

nickel — Wed, 11 Feb 2009 16:47:35 +0000

Jeff: No, I wouldn’t chase rates under those circumstances.

By: Stephen

Stephen — Wed, 11 Feb 2009 16:41:22 +0000

Suburban, we use a strategy that might work for you. We keep subaccounts at ING for things like “entertainment” or “dogs”, which will have lower balances usually and we will access more. We then keep our “emergency” savings at DollarSavingsDirect, which will eventually have a much higher balance (once we are able to save up enough). This provides the flexibility of ING for things we use more often and the higher rate of DSD for our emergency savings, which will hopefully just sit and earn interest.

I’m in the process of adding a second “linked” account at DSD using snail mail, so we’ll see how that goes…

By: Jeff@StretchyDollar

Jeff@StretchyDollar — Wed, 11 Feb 2009 15:01:28 +0000

What suggestions do you have for those like us, with ‘limited’ savings and a history at one bank? Realistically, because of our balance, switching from ING to FNBO would net us only a four dollar increase – is it worth it to rate chase?

By: SuburbanDollar

SuburbanDollar — Wed, 11 Feb 2009 12:31:04 +0000

Do you find the other advantages at ING worth the reduced rate? I am considering opening an ING account but it isn’t at the top of the rate game. I like the idea being able to do subaccounts and haven’t heard of any other bank offering that option.