[Potato_Picker]

Just a general note from a newcomer to the site who has recently signed up with Emigrant Direct.

I wanted a high-yield internet savings account to build up my emergency savings (that 3 to 12 months of salary we're all supposed to have on hand ). My local credit union, which I'm happy with regarding its low fees and decent interest rates, had savings products that were only paying in the 2+% range, and CDs were in the 4% range. So a savings account in the 5% range where I could pull money out anytime was a no-brainer for me.

I did online research only (nobody I knew had even heard of Emigrant Direct; most knew ING only because of the Orange marketing campaign on the internet and TV). ING and ED stood out because they were known commodities and FDIC-registered. In the end, I simply picked the one that paid a higher interest. Since ED has typically paid higher interest over the last year or two, I'm hoping they continue to be at or near the top of the heap.

Registering at ED was quite easy. They do have more security questions than any other online bank account I've had, but it's not much of a hassle. Funding the account was easy. I could also find my ED account number through the website, so I'm not waiting for anything in the mail. I had no trouble, and I think as long as you follow the directions it goes smoothly. I've also transferred a few more deposits into the account with no problems. Note that they hold deposits for 5 days before they're available for withdrawal. I don't mind this because I plan on moving money into the account and not moving it out until absolutely necessary. If you want to switch money frequently among accounts, this might not work for you.

I also signed up for the ED credit card. A few years ago, my wife and I worked hard to wipe out our credit card debt. We've not had any since. We still use a credit card, but we pay it off every month. Right now, I use a card that accrues points towards Amazon.com gift certs. A few times a year a new one shows up in the mail. ED is working with a credit card company to offer a card that pays cash back twice a year. Right now, if you have a min. balance of 10K in an ED savings account, 1.4% of your credit card purchase amount will be deposited in your bank account twice a year. Note that the catch to this is that you need 10K average daily balance in your ED savings, and you need to pay off your credit card each month or else your 1.4% cash-back rebate will be wiped out by interest payments on your credit card balance.

So far I'm happy with ED. The web site seems to work fine.

I'd encourage anyone to at least look into these internet-only savings opportunities. The rates are far better than even CDs at most banks, and unlike CDs, you have far better access to your money.