ING Direct vs Emigrant Direct Bank

[goodtosave]

Resource Bank offers the 3.31% APY in a money market account with a min. of 10K. And you are also limited to 3 withdrawals a month. Can they keep up their competitive rates with ING Direct and Emigrant Direct.

My personal experience over the past 2 years with bricks and mortars banks are that their great rates don't last too long. I could be wrong with Resource Bank.

Here's the fine print with Resource Banks.

Balance Information: We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day. You must maintain a minimum balance of $10,000.00 in the account each day to obtain the disclosed annual percentage yield.

Limitations: You must deposit $10,000.00 to open this account. This account allows unlimited deposits. You are limited to three withdrawals per month from this account. These withdrawals may be made by check, preauthorized or automatic transfers, and by order or instruction.

Account Fees: A minimum balance fee of $10.00 will be imposed monthly if the balance in the account falls below $10,000.00 any day of the month. If you exceed 3 withdrawals in a month, their will be a $10.00 charge for each excess withdrawal.

[jmjj215]

I use my ING account for my emergency fund - those unplanned life events - so I don't think I'd feel comfortable with a limit on the number of withdrawals I could make per month.

Of course, three emergencies in one month is kind of a shot in the dark..

[genchan]

I only mentioned Resource because eddiecruz had 62K to invest and thought Emigrant was the best place to place the money.

[eddiehcruz]

thank you for your advice. the money is safely at emigrant for now.

[genchan]

I just read in another thread that <A HREF="http://www.cnbt.com/products_peraccounts.htm">City National Bank</A> is offering a rate of 3.45% There are some minimum requirements that you have to do though:

<b>Minimum Monthly Activity Required To Earn Interest</b>:

(10) Visa check card POS (Point of Sale) transactions (excluding ATM transactions)
Receive Monthly Statement electronically
Provide a valid email address
Direct Deposit of Payroll or Government Benefit

3.45%apy paid on balances between $0 and $25,000 and 1.10%apy paid on all balances above $25,000 each month minimum monthly activity is met.

*No interest will be paid on the account if the minimum monthly activity is not performed and after 3 consecutive months the account will be converted to a Free Checking with electronic statement delivery.

Limitations: You must deposit $100.00 to open this account. No Monthly Minimum Balance to maintain. Available to Personal Accounts Only

Account Fees: No Monthly Service Charge

Balance Information: We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. The daily balance that we use when calculating interest is the collected balance. That means we only include those funds for which we have actually received payment when we determine the balance on which interest is paid.

Rate Information: Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example. checks). Interest will be compounded monthly and will be credited to your account monthly. If you close your account before interest is credited, you will not receive the accrued interest. The interest rate and annual percentage yield may change. At the Bank's discretion, we may change the interest rate on the account at any time.

[VJW]

What about Western Financial Bank ? They are now at 3.30%.

Anyone have any prior experience ?

VJ

[terry1156]

I never considered them because of the $5000 minimum fee. UFB Direct offers the same 3.30% with no fees or minimum

[genchan]

If the fed raises interest rates again this Tuesday as the newspeople think they are going to do, do you think that both Emigrant and ING will raise their interest rates? I seem to remember with the last rate hike ING raised thier rates, but Emigrant didn't. Am I mistaken?

Do you think that any bank will be offering 4% by the end of the year?

[robby]

The rate hikes are good if you have savings, not so good if you have debt. I don't know if we'll see 4% this year, but I bet we will see some places offering over 3.5%

[jmjj215]

4% would be oh so sweet! One more reason to be on the positive side of the interest equation (saving vs borrowing). Not borrowing money is a tough and bloody battle to fight these days though, very tough.

[robby]

The Fed raised the prime rate to 3% today. Let's see if ING and Emigrant Direct can at least match that increase in the coming days (fingers crossed hoping)

[KTEACH]

Has anyone had any experience with METLIFE Bank? I realize they have a $5000 minimum to get the 3.05% but they are offering a $50 sign up bonus. They also limit withdrawls to 6 per statement period (nopt sure how long that is). I'm looking for a place to hold some $$ but not as restricted as a CD.

[Bluezy]

I must be one of the few who have had a positive experience with Emigrant Direct. The turn around time between my initial sign-up to the receipt of my letter was ten (10) days. My initial deposit transfer went smoothly and the two (2) small deposits were in my bank shortly after the initial sign-up.

However, at 3.25% I would be willling to put up with a bit of delay.

Bluezy

[baselle]

Guys, guys, if you are talking about minimum balances between 5-10K and restrictions on the number of withdrawls for a .5%, you might just as well put a small percent of your total pelf into an I-bond, which is currently paying 4.8% (up from 3.67%, which is still better than the interest rates you're throwing around).

The smallest I-bond you can buy is 50$. You have to keep your money in an I-bond for a year, but you can set up an online Treasury Direct account and link it to your ING account.

[Bluezy]

Baselle:

I had no idea that Treasury Direct existed! Many thanks for that idea!

Bluezy

[jmjj215]

I pulled this from the Treasury Direct site:

Early redemption penalties: Before 5 years, forfeit 3 most recent months'interest, After 5 years, no penalty

So if you want to avoid the penalty you have to hold it longer than 5 years, but if you don't mind paying the last 3 months of interest back, you cash out later than one year but sooner than 5?

[eddiehcruz]

Originally Posted by KTEACH

Has anyone had any experience with METLIFE Bank? I realize they have a $5000 minimum to get the 3.05% but they are offering a $50 sign up bonus. They also limit withdrawls to 6 per statement period (nopt sure how long that is). I'm looking for a place to hold some $$ but not as restricted as a CD.

i just opened up a metlife acct today. pay special attention to all of the conditions:

min of $5k, if it drops below that, only 1% return.
limit of checks drawn on the acct (3 per mo, i think)
if bal falls below $1500, another fee.

i'll leave it in for 90 days (just enough to get the 50) and then put it back in emigrant or maybe buy i-bonds like the prev poster suggested.

[robby]

Since there hasn't been any movement with either ING or Emigrant since the interest rate hike, does this mean there aren't going to pass along this last extra to their customers? How long does it typically take them to react to such increases if they decide to do so?

[KTEACH]

I see MetLife Bank is at 3.05%.

[robby]

Originally Posted by KTEACH

I see MetLife Bank is at 3.05%.

They were at that before the interest rate increase too. They haven't passed on the profit either. Is there any bank out there that increased their rates with the last Fed increase?