Anyone use an onine only savings account?

[imbosile]

Okay so I want to open a savings account, so I have a few questions. I've been looking at interest rates of banks such as Wachovia, Bank of America, etc. I'm not really excited about earning next to nothing on my balance. So I started looking around at some online only savings accounts like ING Direct, HSBC Direct, and a few others.

I've never dealt with any online only banks before, so naturally I'm a little skeptical. But the interest rates are up to 10 times that of a regular savings account at a local bank.

Right now my checking account is though Wachovia. I have already looked up that they Wachovia will charge me $3.00 for every transfer that I make to an outside account (anything other than Wachovia), so that's not a big deal. And all of the online savings accounts I am considering do not charge you for any transfers. I also do not need to be able to right checks from this account.

So I guess I'm wondering does anyone have experience with any online only savings accounts, and which would you recommend?

Also, with the one that you use are there any fees for closing the account.

[hemi]

ING orange account....

5.5% FTW

[imbosile]

ING orange account....

5.5% FTW


What? I just looked at it a few minutes ago and it's only showing 3.1%. It was 3.4% a few days ago though.

[hemi]

I need to go look then....

When I opened the account last year it was 5.5

[imbosile]

I need to go look then....

When I opened the account last year it was 5.5


Do you lock in that rate? I doubt you are still making 5.5%. lol

[JennB]

I use ING. The interest rate is nowhere near 5% right now... I believe it's at 3.1%. Every time the fed cuts rates, savings rates fall as well. It's still 10+ times more than a traditional bank savings account. No fees, no hassle. It's been very easy and I've had it for about 3 years now if not more.

I set up an automatic deposit from each paycheck and it just grows.

If you decide to go with ING, let me know and I'll get you a referral that will give you $25 for free if you open your account with $250 or more.

No fees to open or close, no fees for transfers, the $25 is yours to keep.

[imbosile]

I use ING. The interest rate is nowhere near 5% right now... I believe it's at 3.1%. Every time the fed cuts rates, savings rates fall as well. It's still 10+ times more than a traditional bank savings account. No fees, no hassle. It's been very easy and I've had it for about 3 years now if not more.

I set up an automatic deposit from each paycheck and it just grows.

If you decide to go with ING, let me know and I'll get you a referral that will give you $25 for free if you open your account with $250 or more.

No fees to open or close, no fees for transfers, the $25 is yours to keep.


Okay great thanks, I'm leaning towards the ING Direct account. Seems to get great reviews from other websites as well.

HSBC is the other one I am considering. Rate is still 3.55%.

http://www.hsbcdirect.com/1/2/1/

[SampaGuy]

Okay great thanks, I'm leaning towards the ING Direct account. Seems to get great reviews from other websites as well.

HSBC is the other one I am considering. Rate is still 3.55%.

http://www.hsbcdirect.com/1/2/1/

Yes, HSBC has always had a better rate but I believe they do not have the whole refer a friend bonus thing. I made $45 in 2007 from bonuses with ING (and all of them were referral for IA members lol); that $45 alone more than made up the difference in interest rates between HSBC and ING and when I add that to my interest earned for 2007 it averages out to like 7% interest rate earned for last year. The more money you have the more the interest rate is going to matter, so if you are depositing ~$20k+ I would go with HSBC; if its not that much money I would go with ING because of the bonuses. Remember its pretty easy to just switch companies later.

If anybody else wants a ING referral pm me!

[imbosile]

Wow, ING is looking pretty good right now. LOL.

Thanks for all the help guys.

I'll be opening one around mid May, or maybe I'll just go ahead and open it sooner.

[HyPer50]

I use ING and have no complaints with it. Other than my account is very small lol.

[ISAtlanta300]

I also use ING and accummulated some nice dough from transfers..... so far so good... :)

[imbosile]

I also use ING and accummulated some nice dough from transfers..... so far so good... :)


Lawl, you could transfer me some of that dough. Haha.

Thanks for the testimonial.

Sounds like ING is pretty well known.

[imbosile]

Anyone know anything about these guys? 3.81%, I believe it was actually about 4.0% a couple weeks ago.

https://www.wtdirect.com/wtdirect/

[BB6dohcvtec]

I use ING as well i think when i got mine the rate was around 4.7%. it great deal! i just set a side a few bucks every now and then over there. Thats kinda messed up that wachovia is going to charge you $3.00 bucks every time you transfer out of there to another institution online.

[imbosile]

I use ING as well i think when i got mine the rate was around 4.7%. it great deal! i just set a side a few bucks every now and then over there. Thats kinda messed up that wachovia is going to charge you $3.00 bucks every time you transfer out of there to another institution online.

Yeah I know it's really stupid but I don't really have a choice. I think most banks charge you for that anyway. Plus my account is just a free student checking account, so I guess I can't complain.

[JennB]

I'm with Wachovia and I don't get charged a cent for transfers :thinking:

I have two ING automatic transfers from my Wachovia checking every month.

[imbosile]

I'm with Wachovia and I don't get charged a cent for transfers :thinking:

I have two ING automatic transfers from my Wachovia checking every month.


Hmm, I'll try and find a link to where I read that.

[imbosile]

http://www.wachovia.com/personal/page/0,,10_476_12331,00.html

From Wachovia:

Transfers between Wachovia and non-Wachovia Accounts

Securely transfer funds between your Wachovia accounts and your accounts at other U.S. financial institutions. This includes checking, savings, money market, and investment accounts.

Transferring funds to your Wachovia account is free. Fees for transfers to your non-Wachovia accounts are $3.00 or $10.00 per transfer based on delivery time.2

* Standard Delivery – Using one-time or recurring transfer methods, you can deliver funds to or from accounts in a minimum of three business days.
* Next Day Delivery – Need fast delivery? Move funds to or from accounts by the next business day.

[jR1_kS14]

I, too, am in need of this good information.


whatttt no wayyy. I'll try and transfer it directly from my pay check then. Those fees are crazy. It will add up to hundreds of dollars. I get paid every week so I'll see if i can transfer directly from my pay check.

[jR1_kS14]

I found some new ones

FNBO Direct- 3.85%
Washington Mutual-4.00%

[imbosile]

You only get 4.00% with WaMu if you also have a checking account with them.

[jR1_kS14]

You only get 4.00% with WaMu if you also have a checking account with them.

Oh i see.

[Nittanys1]

ING FTW! I HAD a 5.5% rate but the market is dow so its around 3.2 or something right now/

If you like free money sign up here and you'll get $25 when you deposited $250+ into your new account.

http://home.ingdirect.com/promo/promo_set.asp?t=%9D%7c%A0%A1%A7%9E%A0%A2%D3%9B%9A% A0%A0%A3%A7%9F%9F%9F%9A%9A%9E%A1

if that doesnt work feel free to PM me your email addy.

[JennB]

I think the fee is only if you initiate the transfer through Wachovia. If you do a transfer to your ING account, ING initiates the transfer. I've had my Wachovia checking for 3 years now and my ING for longer than that. I've probably done 100+ transfers to my ING. I've never been charged. I have a regular free checking account, I don't think there is anything special about it.

When ING withdraws money it shows up as "AUTOMATED DEBIT ING DIRECT WITHDRAWAL" not a transfer.

[imbosile]

I think the fee is only if you initiate the transfer through Wachovia. If you do a transfer to your ING account, ING initiates the transfer. I've had my Wachovia checking for 3 years now and my ING for longer than that. I've probably done 100+ transfers to my ING. I've never been charged. I have a regular free checking account, I don't think there is anything special about it.

When ING withdraws money it shows up as "AUTOMATED DEBIT ING DIRECT WITHDRAWAL" not a transfer.


Ahh thanks, that makes a lot of sense. Thanks for the info.

[imbosile]

ING FTW! I HAD a 5.5% rate but the market is dow so its around 3.2 or something right now/

If you like free money sign up here and you'll get $25 when you deposited $250+ into your new account.

http://home.ingdirect.com/promo/promo_set.asp?t=%9D%7c%A0%A1%A7%9E%A0%A2%D3%9B%9A% A0%A0%A3%A7%9F%9F%9F%9A%9A%9E%A1

if that doesnt work feel free to PM me your email addy.


Thanks for the offer but JennB already called dibs on it. Appreciate the info though.

[Nittanys1]

thats cool! I started my account in Sept 06 and it was making a good amount of interest for me. I only wish I had the money I have in there now with the 5.5%...

[JennB]

5.5%? Do you have a CD because ING's Orange Savings is not 5.5% right now. Interest rates have fallen quite a bit in the past few years.

[imbosile]

5.5%? Do you have a CD because ING's Orange Savings is not 5.5% right now. Interest rates have fallen quite a bit in the past few years.


I think he means he wishes that he had his current balance in his account back when the interest rates were 5.5%.

[JennB]

Oops, totally read that wrong.

dur

[Nittanys1]

yeah i wish it was back at what it was...they dropped again a few days ago :(

[imbosile]

Another noob question... When it comes to earning interest how does it work?

Do they take the APY, then multiply it by 1/365, then use that as a daily rate? And then add interest to your account each day that passes based on the balance at that time?

[Nittanys1]

they take the total in your account and at the end of the month you make interest off that. Its not daily, only at the end of the month.

[JennB]

Actually, it does accrue daily. At the top of your account statement page, there is a thing that says "Interest earned this month". It goes up every day. At the end of the month, they deposit it.

It's just as you guessed,. APY/365 and multiplied by your balance daily. I just did the math on mine and it worked out to the penny.

[imbosile]

Actually, it does accrue daily. At the top of your account statement page, there is a thing that says "Interest earned this month". It goes up every day. At the end of the month, they deposit it.

It's just as you guessed,. APY/365 and multiplied by your balance daily. I just did the math on mine and it worked out to the penny.


Huh, cool. Well I am glad I know how it works. Thanks for the help from everyone, you especially. You can send me over that referral code whenever you want, I think I will be opening an account within the next few days.

[imbosile]

Ahh! I'm not sure what to do, now that I am reading more about HSBC Direct I am starting to lean more toward them. Their interest rate is really attractive right now.

[JennB]

Well, if you decide on ING, PM me your e-mail and I'll send you a referral.

[imbosile]

Just looked up Capital One, they have a 3.85% rate right now. Does anyone use those guys?

[imbosile]

Update... I tried to open an HSBC account this morning, upon doing a background check they pulled up my credit report and found that apparently I have a mortgage out in my name that was opened in 1999, keep in mind I am 19 years old right now.

And as if that weren't enough, I have 3 other loans out right now apparently in my name and social security number. Again keep in mind I am 19 years old and have never had any sort of loan whatsoever, and I've never had a credit card either. So my credit report should definitely be completely blank.

Thank god I have a aunt who is a lawyer, she told me this sounds like a pretty big law suit waiting to happen. She told me there was a lot of mortgage scams going on around 5-6 years ago.

I've spent all day calling the three credit bureaus, Wachovia, and HSBC. This day has sucked.

[Julio]

Update... I tried to open an HSBC account this morning, upon doing a background check they pulled up my credit report and found that apparently I have a mortgage out in my name that was opened in 1999, keep in mind I am 19 years old right now.

And as if that weren't enough, I have 3 other loans out right now apparently in my name and social security number. Again keep in mind I am 19 years old and have never had any sort of loan whatsoever, and I've never had a credit card either. So my credit report should definitely be completely blank.

Thank god I have a aunt who is a lawyer, she told me this sounds like a pretty big law suit waiting to happen. She told me there was a lot of mortgage scams going on around 5-6 years ago.

I've spent all day calling the three credit bureaus, Wachovia, and HSBC. This day has sucked.



Lawyer? Lol... She made it sound so easy.

Get ready to suffer man... Sounds like identity theft to me...

If I was you I would "freeze" your credit to prevent anything else until you clear that **** up.. big pain in the ass..

[Julio]

BTW I have HSBC and ING.. ING is better.

[imbosile]

Lawyer? Lol... She made it sound so easy.

Get ready to suffer man... Sounds like identity theft to me...

If I was you I would "freeze" your credit to prevent anything else until you clear that **** up.. big pain in the ass..


No she didn't make it sound easy, I know this is going to be a huge pain in the ass. The biggest problem right now is that I can't even see my credit report, I don't want to freeze my credit or place an alert on it because I don't even know if in fact there is anything on it. The only reason I think there may be is because of these "test" questions that HSBC gave me coupled with the fact that for some reason I can't even view my credit report online, I've even tried paying the $40.

**** this. This is so ****ty.


What do you like more about ING than HSBC?

[JennB]

Why can't you view it? If it's giving you a hard time online because addresses don't match up or something, do the mail in request that they offer on their site. Try Equifax first. You mail in a form along with proof of identity. Since they are located right here in Atlanta, you'll get it back very fast. I've ordered mine over the phone before and had it in a day. I would think through the mail would be 3 or 4 days.

[imbosile]

Why can't you view it? If it's giving you a hard time online because addresses don't match up or something, do the mail in request that they offer on their site. Try Equifax first. You mail in a form along with proof of identity. Since they are located right here in Atlanta, you'll get it back very fast. I've ordered mine over the phone before and had it in a day. I would think through the mail would be 3 or 4 days.

I don't know why I can't view it, I've never changed my address or anything before. It's okay though, I've got it figured out now. Thanks for the help, I forgot Equifax is in Atlanta.

[imbosile]

Wow... HSBC is down to 3.05%, ING is down to 3.00%.

[imbosile]

Just opened an account with ING, thanks Jenn!

[Nittanys1]

when I went to Wachovia last week they were tying to get me to sign up in their new savings account. it has a few dumb things in it but also offers 5% for the first year. I was thinking of doing it but not sure what hidden rules they may have. Like having to keep your money/account open in there for a few years and limits on home much interest you can make....etc...

If anyone could figure it out and let me know what they think about it that would be great.

http://www.wachovia.com/personal/page/0,,11_481_12660,00.html

[imbosile]

when I went to Wachovia last week they were tying to get me to sign up in their new savings account. it has a few dumb things in it but also offers 5% for the first year. I was thinking of doing it but not sure what hidden rules they may have. Like having to keep your money/account open in there for a few years and limits on home much interest you can make....etc...

If anyone could figure it out and let me know what they think about it that would be great.

http://www.wachovia.com/personal/page/0,,11_481_12660,00.html


Basically every time you make a purchase with your check card, they will transfer $1 from your Wachovia checking account to your Wachovia savings account. At the end of the year, they will take this total number of dollars transfered and give you a five percent bonus on that money. So lets say you make 100 purchases with your check card throughout the year, that equals $100 transfered into your savings from your checking. A five percent bonus would be $5. Then the following years that bonus drops to 2%.

I guess it's kinda helpful if you don't trust going the online savings route, but it's really not as good as it sounds. Unless I guess if you use your check card 10,000+ times per year, then maybe.

[Nittanys1]

but you can also add money too it. I got that far but r you saying that you don't get interest on the money you add to it? and do you think there is any limitation to the amount of money you can put in there and gain interest from?

[imbosile]

but you can also add money too it. I got that far but r you saying that you don't get interest on the money you add to it? and do you think there is any limitation to the amount of money you can put in there and gain interest from?


Yeah I guess you're right, I see what you're saying now. I don't see any limitations, but I haven't read the fine print. Maybe it is a good deal, we need to make sure that you don't have to keep the account for X number of years before you actually get to withdraw the bonuses that you've earned.

[Nittanys1]

yeah, I guess I'll just stick with ING....you should have seen the lady at the counter in Wachovia...she wouldnt let me leave....I was like no thats ok I have another place i use for my savings account. Her manager (that was standing behind her) didnt like that response at all...lol

[imbosile]

yeah, I guess I'll just stick with ING....you should have seen the lady at the counter in Wachovia...she wouldnt let me leave....I was like no thats ok I have another place i use for my savings account. Her manager (that was standing behind her) didnt like that response at all...lol


LOL, Wachovia has never really been very helpful for me. I guess they're fine for my checking account though, it's nice that they have so many ATMs around.

[Nittanys1]

yeah same here...thats all I use them for...

[JennB]

On the Wachovia account, you get a 5% bonus once during the year and then 2% once a year for two years after that. You will get the bonus based on whatever amount you have in your account on the day they calculate the 5% bonus. It doesn't accrue the 5% as daily interest. It doesn't say what the base interest rate on the account is, if there is one like on other savings accounts.

Also, there is a $300 maximum bonus. So eligible amounts for the first year are $6,000 and $15,000 for the next two years.


"2 Customers enrolled in the program earn a 5 percent annual bonus in year one, up to $300, and a 2 percent annual bonus in years two and three, up to $300. Bonuses are calculated on an annual basis for the first three years on eligible balances. The eligible balance is equal to the savings contributions for the current year (i.e., the sum of the $1 transfers and up to $1,200 of the recurring transfers) or the Way2Save account balance, whichever is less."

[ShooterMcGavin]

i'm w/gmacbank, have been for about a yr now, great rates (comparatively, esp during ****ty times like these).

[imbosile]

i'm w/gmacbank, have been for about a yr now, great rates (comparatively, esp during ****ty times like these).

what's the interest rate over there right now?

[ShooterMcGavin]

flat 3% i believe.

[SampaGuy]

Im thinking of getting some money out of my ING account and buying government bonds. Not gonna help much but I want to get used to how bonds work and then ill buy some corporate bonds. The ING 3% just isnt cutting it lol.

[imbosile]

flat 3% i believe.


ING is 3% as well.

[ShooterMcGavin]

yeah well now that it's sh1tty everywhere i'm not surprised, but just 6 months ago gmac was at 5.25 while ing and others were under/at 5.

not to mention all the other benefits of having what's basically a free checking acct when you sign up w/gmac bank. hell they even pay your atm fees 3 times a month (yes, fees from both sides).

[imbosile]

yeah well now that it's sh1tty everywhere i'm not surprised, but just 6 months ago gmac was at 5.25 while ing and others were under/at 5.

not to mention all the other benefits of having what's basically a free checking acct when you sign up w/gmac bank. hell they even pay your atm fees 3 times a month (yes, fees from both sides).


Yeah that sounds pretty nice, I just decided with ING mainly because they were the only people that I had seen commercials about / billboards. So I trusted them a little more than the others.