Virtual Bank

[MonkeyMama]

All this talk of ING & ED, does anyone use Virtual Bank?

Just wanted throw it out because I learned of ED from Suze ORman show and did a little research. I found much higher yields at E-Trade and almost signed up when I saw their customer service is just HORRID. So I did more research and came across Virtual Bank.

I tested it 60 days before I started referring and even tested their customer service. IT is impeccable , hold time is 0 when you call.

Interest rate right now is 4.50%, compounding daily. Minimum $100 to open a savings account, links directly to your checking account for transfers. No fees.

I don't think this was the highest interest rate out there, but I thought it was important to have semi-decent customer service which I heard horror stories on all of the other virtual banks.

Virtual Bank has a high rating, FDIC insured, all that. I Am meticulous when researching thse things.

I wonder too why they are not mention on this site - any reason???

[MonkeyMama]

Oh - reading some more posts - the fine print is that I believe there is a fee if you close before 30 days and HOLD period is 10 days for the first 30 days you open the account. Do not put any money in you may need right away. After that hold time is 3 days technically, but they have transferred my money in 1-2 days directly in my checking most of the time.

This is all for the eMoneyMarket account.

They have c.d.s, but they have a $10k minimum.

[sweeps]

Originally Posted by MonkeyMama

I wonder too why they are not mention on this site - any reason???

Because the interest rate is not that great and no bonus to join. 5.25% or so is the current target to shoot for.

[MonkeyMama]

So is everyone happy with the customer service at ING and ED? Truly curious because I am trying to balance the 2 - high yield and customer service.

[boefixepa]

I've personaly had zero problem with ing, but I've never had a reason to call.

[MonkeyMama]

I don't even call that much - just heard the horror stories so makes me nervous when I need my money if there would be problems. Though I am sure VB will have the same issues if they gain a huge customer base as some other online banks have.

Sweepsplayer - I found the thread - "Summary post of online MMA rates." I saw VB was mentioned, as well as how it compared to other rates, and so I guess I missed it before. Still figuring this site all out. Thanks!!

[sweeps]

No problem, MM.

A comment about customer service. It can be very subjective. Depends on why you had to deal with their customer service. Auto insurance companies are a good example. If someone tells you their auto insurance company has great customer service, ask them if they've had to make any claims -- often they'll say no. Customers who hate their auto insurance company have typically had 1 or more claims in the last year.

Also a comment about referral bonuses. As a general rule of thumb, I shy away from banks that offer referral bonuses. Typically if a bank is handing out lots of bonuses, (a) their interest rates aren't good enough to attract customers on their own, (b) the bank can't afford to pay out the highest rates because it's paying out all these referral bonuses, and (c) the bank won't attract the kind of long-term, high deposit customers that will keep it in good long-term financial shape. Just my $.02.

[lilmidge]

I opened a Virtual Bank account two years ago when they were still offering a $20 sign up bonus with a $100 deposit. I haven't had one problem with the account.

[LuxLiving]

Is this compounded daily AND paid daily???

[bootsmam]

There are a couple of things to watch for with Virtual Bank. First, you have to keep your initial deposit in for at least 14 days. You also cannot close your account within 90 days or they charge you $50.

[Ima saver]

I am lucky, I keep my cash stash at my local bank where I can walk in, 6 days a week. I am earning 5.25%. I did open an ING over a year ago to get the bonus, but I never added to it cause I can earn better and stay local.

[tinapbeana]

Originally Posted by Ima saver

I am lucky, I keep my cash stash at my local bank where I can walk in, 6 days a week. I am earning 5.25%. I did open an ING over a year ago to get the bonus, but I never added to it cause I can earn better and stay local.

great rate for a brick and morter bank, Ima!!! i too prefer to keep my money local if possible, rather than having MegaCorp headquartered in Who Knows Where, USA using.

[bootsmam]

5.25% is awesome. I wish I had a local bank paying that. As far as Virtual Bank goes, I put in a $100 and now have $200. That means I made a 100% return. I can live with that. Plus, I can access my account 24 hours a day from my computer or via phone. No need to drive to the bank.

Also for whoever wrote the blurb on keeping your money local - I wish I lived in your world. Every local bank I have near me is owned by a holding company located "who knows where." Plus, I don't know if you ever noticed but the truly local banks who are not owned by a holding company are often owned by a families who have been raking in it for years and charging above market rates to those who need loans the most. Thanks for your input though.

[fake_usa]

Originally Posted by bootsmam

As far as Virtual Bank goes, I put in a $100 and now have $200. That means I made a 100% return. I can live with that.

how did you do this??