ING Direct vs Emigrant Direct Bank

[disneysteve]

Originally Posted by Mathew Green

Let's say you put the $500 in ING and leave it there a year. You get the $25 (5%) plus their regular interest rate (4.4%) for a total of 9.4%.

You actually only need to deposit $250 with ING to qualify for the bonus which makes the percentage earned even higher.

[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.

[Mathew Green]

Originally Posted by disneysteve

You actually only need to deposit $250 with ING to qualify for the bonus which makes the percentage earned even higher.

True. But Albies5 was wondering where to put $500 and will have another $400 to invest next month, so my reply was based on those figures.

While we're at it, we should mention Jeffrey has posted links in the Everything Else forum http://www.savingadvice.com/forums/forumdisplay.php?f=7 for people who want to get the $25 ING bonus.

[sweeps]

Originally Posted by Mathew Green

While we're at it, we should mention Jeffrey has posted links in the Everything Else forum http://www.savingadvice.com/forums/forumdisplay.php?f=7 for people who want to get the $25 ING bonus.

Brown noser.

[Albies5]

I was just letting you guys know how much i plan to put away to see if it makes a difference- since someon had mentioned somthing to the effect that depending on how much you invest will tell you which way to go- so i just wanted to give you some backgroud info. I have 500 currently and then will have 400 each month so i guess a yearly total of 5,300. im thinking the 25 bucks bonus is a pretty good "added"rate/deal ontop of the rate offered -but i dont know if in the long run where its best to put my money.

[sweeps]

Originally Posted by Albies5

i dont know if in the long run where its best to put my money.

The answer is: No one knows. Just look back through the history of this thread. At one time (a looonng time ago), ING was the best. Then ED came, and everyone jumped on that bandwagon. Then HSBC. Then GMAC. Now there are a dozen reasonable alternatives.

Very few people can give you a fair comparison of all the banks out there. Because in order for that to happen they must have an account at all the banks. Not very likely. From what I hear, ED is very good particularly after their recent enhancements. But like all these banks, that is subject to change.

Final note: Don't get paralysis by analysis. Pick a bank and get your money to work.

[disneysteve]

Originally Posted by Sweepsplayer

Final note: Don't get paralysis by analysis. Pick a bank and get your money to work.

This deserves repeating. It is better to open any high-yield account than to leave your money in a low-yield account. Agonizing over a few tenths of a percent is a waste of time unless you are talking about huge sums of money. On $5,000, 1/2% difference equates to just $25/year.

[Mathew Green]

Originally Posted by Sweepsplayer

Final note: Don't get paralysis by analysis. Pick a bank and get your money to work.

Yep. It's just like buying ice cream. You can buy one brand this month, a different brand next month, and stick with whichever you like best.

Opening an online savings account really is a very simple process, and the major players all seem to be within 1% of each other. On $5000, 1% is $50 a year. With the way rates have been going up and down, I wouldn't sweat it. Just pick one. Among the major players, almost any choice is probably a good choice.

I went with ING because I've read very few negative coments other than their interest rate being low. My account will never have more than $1500 in it, so for me customer satisfaction trumps the small amount of extra interest other banks will pay. Your mileage may vary.

[WellManicuredMan]

Originally Posted by Potato_Picker

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.

I've been seriously considering getting ED's credit card. Right now I use Citi's Dividend Platinum Select Mastercard for all my cash back but they are lowering their cash back on gas and groceries in October I've heard from other posters.

Anyways... what kind of a limit did you get with your ED card? How is using the website to access your account? I noticed that it is through Juniper bank so you have to use their site.

[joseblanco]

Originally Posted by WellManicuredMan

I've been seriously considering getting ED's credit card. Right now I use Citi's Dividend Platinum Select Mastercard for all my cash back but they are lowering their cash back on gas and groceries in October I've heard from other posters.

Anyways... what kind of a limit did you get with your ED card? How is using the website to access your account? I noticed that it is through Juniper bank so you have to use their site.

WMM, FYI Juniper was bought out by Barclay's, a British Bank, this past year and is expanding their presence in the US Banking Market in general.

[Potato_Picker]

Originally Posted by WellManicuredMan

I've been seriously considering getting ED's credit card. Right now I use Citi's Dividend Platinum Select Mastercard for all my cash back but they are lowering their cash back on gas and groceries in October I've heard from other posters.

Anyways... what kind of a limit did you get with your ED card? How is using the website to access your account? I noticed that it is through Juniper bank so you have to use their site.

I got an initial limit of $20K, which is more than enough for me. Website access seems fine. I've only had the account for a few weeks, but I have made charges on the card. I will be scheduling my first online payment soon. So far it looks like any other credit card website. The account is managed by Juniper, but the website has all the requisite ED branding!

Let me just repeat a word of caution for all posters/readers of this thread. This is clearly designed for someone who has some decent savings ($10K min.) and pays off their credit card every month. Their interest rates are in the double digits (14% !!!). So clearly this is not a card you want if you're carrying any balances!

[WellManicuredMan]

Originally Posted by Potato_Picker

I got an initial limit of $20K, which is more than enough for me. Website access seems fine. I've only had the account for a few weeks, but I have made charges on the card. I will be scheduling my first online payment soon. So far it looks like any other credit card website. The account is managed by Juniper, but the website has all the requisite ED branding!

Let me just repeat a word of caution for all posters/readers of this thread. This is clearly designed for someone who has some decent savings ($10K min.) and pays off their credit card every month. Their interest rates are in the double digits (14% !!!). So clearly this is not a card you want if you're carrying any balances!

Thanks! Now only if they had a bonus for signing up for the card...

The $10K in savings I knew about already. Pretty soon I'll have over $20K in ED so this won't be a problem (waiting on a CD to mature). My Citi card has a high interest rate so I'm already used to this and paying off the card every month and never carrying a balance. The idea of paying a credit card company interest sickens me.

[wyett3]

Going after the cashback rates?

Originally Posted by Potato_Picker

...Let me just repeat a word of caution for all posters/readers of this thread. This is clearly designed for someone who has some decent savings ($10K min.) and pays off their credit card every month. Their interest rates are in the double digits (14% !!!). So clearly this is not a card you want if you're carrying any balances!

HSBC's card has a 1% cashback rate, no tiers. It's interest rate is double digit too but there's no balance requirements to get the cashback rate.

Originally Posted by WellManicuredMan

Thanks! Now only if they had a bonus for signing up for the card...

The $10K in savings I knew about already. Pretty soon I'll have over $20K in ED so this won't be a problem (waiting on a CD to mature). My Citi card has a high interest rate so I'm already used to this and paying off the card every month and never carrying a balance. The idea of paying a credit card company interest sickens me.

Credit card deadbeats like me, to parrot the SciFi channel's new show.

Take a look at AMEX's Blue Cash card; I don't spend enough money each year to make its tiered rate worth it but it sounds like you do. Its highest rates at 5% (gas, drugs, supermarkets) / 1.5% (everything else) could beat out ED's 1.4%

The Discover card folks have a quarterly 5% cashback on a random category of purchases. I hang on to my old card and use it when what I want to buy coincides with their 5% cashback offer.

[safari]

Originally Posted by wyett3

HSBC's card has a 1% cashback rate, no tiers. It's interest rate is double digit too but there's no balance requirements to get the cashback rate.

My dad has an HSBC card with 1% cashback, but he can only request cashback in incerements of $100, which is ridiculous. It would take him several years to earn that much cashback. Unfortunately, he didn't know that until he tried to request the $25 that he accumulated so far.

[wyett3]

Originally Posted by safari

My dad has an HSBC card with 1% cashback, but he can only request cashback in incerements of $100, which is ridiculous. It would take him several years to earn that much cashback. Unfortunately, he didn't know that until he tried to request the $25 that he accumulated so far.

Wierd I have cashed out at $25. They do have several different kinds of cards. Call their regular bank and ask for a credit card rep (as I recall I couldn't find a phone # on their credit card page).

[disneysteve]

Originally Posted by safari

My dad has an HSBC card with 1% cashback, but he can only request cashback in incerements of $100, which is ridiculous. It would take him several years to earn that much cashback.

Sounds like he doesn't use his CC very much. My average monthly CC bill is about $2,500, so I'd hit the $10,000 in charges needed to collect the $100 every 4-5 months.

That's why I always say it is important to be sure the reward card fits the user. While a card like that would be just fine for me, it doesn't make sense for him. I agree with trying to find an alternative that would give him a more realistic reward structure.

[safari]

Originally Posted by disneysteve

Sounds like he doesn't use his CC very much. My average monthly CC bill is about $2,500, so I'd hit the $10,000 in charges needed to collect the $100 every 4-5 months.

That's why I always say it is important to be sure the reward card fits the user. While a card like that would be just fine for me, it doesn't make sense for him. I agree with trying to find an alternative that would give him a more realistic reward structure.

Just curious, what kind of things do you charge on your credit card that amount to $2,500 a month? I wish I could charge my mortgage and car payment on a credit card; that would earn me a hefty cashback.

[disneysteve]

Originally Posted by safari

Just curious, what kind of things do you charge on your credit card that amount to $2,500 a month?

Local, long distance and cell phone bills
Cable tv
Internet access
Gas
Groceries
Alarm company fee
Medical expenses (like DD's braces)
Dining out
Netflix
Magazine and newspaper subscriptions
Family activities (museums, movies, shows, etc.)
AAA membership
Auto insurance
Auto registration
Professional dues
All household purchases and clothing
EZ Pass (electronic tolls)
Ebay fees
Travel (hotels, airfare, rental cars, activities)

I'm sure there are some I'm leaving out, but basically we charge everything we possibly can.

[WellManicuredMan]

Originally Posted by wyett3

HSBC's card has a 1% cashback rate, no tiers. It's interest rate is double digit too but there's no balance requirements to get the cashback rate.

Take a look at AMEX's Blue Cash card; I don't spend enough money each year to make its tiered rate worth it but it sounds like you do. Its highest rates at 5% (gas, drugs, supermarkets) / 1.5% (everything else) could beat out ED's 1.4%

I actually don't spend very much every month. I've had some car repairs and other car expenses recently so my monthly credit charges have been around $900 but when I don't have any unusual expenses I average about $500 a month. If I could put my monthly apartment rent on a credit card it would be double that. I've tried getting the apart. owners to accept credit cards and they always refuse.

I hate tiered credit cards since I'm not a big spender. My Citi card already gives me 1% on all purchases except for those that they give 5% on. I just got another statement today from Citi and they are still giving me 5% on groceries and gas. So for my personal use I think the ED card is the best that I've found for the "everything else" type of purchases that other cards only pay 1% that don't have tiers.

[joseblanco]

Originally Posted by WellManicuredMan

I actually don't spend very much every month. I've had some car repairs and other car expenses recently so my monthly credit charges have been around $900 but when I don't have any unusual expenses I average about $500 a month. If I could put my monthly apartment rent on a credit card it would be double that. I've tried getting the apart. owners to accept credit cards and they always refuse.

I hate tiered credit cards since I'm not a big spender. My Citi card already gives me 1% on all purchases except for those that they give 5% on. I just got another statement today from Citi and they are still giving me 5% on groceries and gas. So for my personal use I think the ED card is the best that I've found for the "everything else" type of purchases that other cards only pay 1% that don't have tiers.

WMM, If anyone is or was in the military then they are eligible to be members of Pentagon Federal Credit Union which has a 1.25% flat rate rebate which is returned to the cardholder monthly & No Strings Attached. Anyone can bank at USAA banking services which also has a flat rate cash back rewards card, the military affiliation requirement is for the other services USAA offers, namely auto insurance. But I think the rebate accrues. AAA offers a flat 3% rebate for all pay at the pump gas purchases that is credited monthly.