ING Direct vs Emigrant Direct Bank

[VJW]

Originally Posted by 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).

Did this almost a year ago, good deal. There's a $30K maximum purchase limit, but that can be gotten around the same manner as the FDIC $100,000 limit (some in one name, some in another name, some in a joint account).


http://www.treasurydirect.gov/indiv/...nds_glance.htm

[baselle]

Originally Posted by jmjj215

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?

Exactly. And if your denominations are small, that loss might not be as much as you think. Matter of fact, the suggestion is to carefully watch the fixed rate piece of your holdings. If that's going up (as it is), it would be worth redeeming the low fixed rate bonds, take the 3 month interest hit, and buy more of the higher fixed rate bonds.

Notice that I didn't suggest that you put everything from your emergency fund into it - if you think of your savings as a layer cake, the ING account is the frosting and the first layer. This is your second layer that you can use for college or down payment on a house or the hurricane fund (as opposed to the rainy day fund). Your third layer is supposed to be your 401k, stock, IRA, etc.

[jmjj215]

Originally Posted by baselle

Notice that I didn't suggest that you put everything from your emergency fund into it - if you think of your savings as a layer cake, the ING account is the frosting and the first layer. This is your second layer that you can use for college or down payment on a house or the hurricane fund (as opposed to the rainy day fund). Your third layer is supposed to be your 401k, stock, IRA, etc.

Baselle, thanks for the straight-talk. I'm going to take a look at putting our house down-payment in here...

Also, I think I'll mention that you shouldn't eat the third layer of cake! Let it sit and it'll grow into a very nice, moldy, chunk of cake. Then, once you've decided you're done cooking cakes, just eat the mold the 3rd layer continually creates...just wanted to mess with the analogy - 'tis a good one!

[al0061]

Too funny, and rather icky.
I like the expanded analogy.

Torch - aka al0061

[terry1156]

lol...can I put my cake into the refrigerator or freezer so it doesn't mold?

[baselle]

Hopefully, you'll be using the third layer of cake during retirement - so you don't want it too moldy. And yet... green is both the color of mold and money.

[joseblanco]

Originally Posted by 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%

3.5% is here. While everyone has been watching the big boys ING & Emigrant, presidential.com a Metro DC bank has quietly been upping their rates. They now have 3.25% on internet checking and 3.5% on savings. The maximums are 25k & 35k respectively and they have reasonable minimums. With these rates this early in the year I think 4% is doable this year.

[genchan]

OK - With all these banks barely increasing their rates over the competition, when is it worth it to change? Is there a rule or does it just depend on how much money you have?

[goodtosave]

You have just to find a bank with the highest rate that best meets your requirements. I like Emigrant Direct the best because I can get my funds transferred in 1 business day(may depends on your bank). ING Direct takes 2 business days. And Capital One has a money market that allows you to write 3 checks a month. So it all depends on what your needs are.

I also like banks that's well funded meaning BIG banks with LOTS of money especially ones with MORE assets than liabilities. You can read up on the bank's balance statement by going to fdic.gov. As of 12/31/04, I believe ING Direct has 36B in assets followed by Emigrant Savings(incl. Emigrant Direct) with 10B.

[joseblanco]

Yes, I concur w/ good saver but also you do not want to just keep chasing the rate and have a zillion accounts along the way. You must go with what is most convenient and comfortable for you. I was ING loyal until Emigrant went to 3.25% and ING did not match and was slow to at least close the gap. I always had presidential internet checking because of the high rate and the fact I could write checks, use an ATM machine etc. Now that presidential has savings with a high rate I'm considering consolidating, but they do have ceilings so you get a lower rate when you go beyond, but its still respectable. ING & Emigrant both do not have ceilings. I do not like doing alot of EFTs over the web, despite all the security so presidential lets you keep it all in house, up to 60k at very good rates (3.25% checking & 3.5% for savings).

[jmjj215]

I prefer to consoildate also. I don't like having my money spread over a bunch of different places. You just need to run a cost-benefit if you're thinking of switching. How much will a .25% differenece make over a year? Is it worth it to you to make the switch partially, completely, or not at all? It comes down to how you personally value your time vs. reward.

[al0061]

Holy Cow. I just had a wonderful experience with ING.
I've spent the morning updating software and tidying up my computer in general. I noticed an icon on my desktop that was placed there when I installed Quicken a short time back. It was for a $50 ING bonus when you set up a new account through that link.
While cursing myself as an idiot for not using it when I set up the account, I decided to call and ask if I could apply it retroactively if I provided my Quicken PN number. (Fat chance, I told myself, as I dialed.)

They said yes, and credited the $50 bonus immediately!! And, they were extremely nice about it. It took about 3 minutes from Dial-to-$50 credit.

I praised them on their service, and their wonderfully superior and easy website, and that was that.

So if anyone has bought Quicken, and there's a $50 ING Bonus icon on your desktop, I recommend you use it, if you haven't opened an account yet, or call them, if you have.

Yippee.
Torch - aka al0061

[al0061]

I forgot to comment on the previous posts about consolidation vs. 'chasing the rates'. I can see both sides of those concepts.

I'm new to the concept of having money to save.

My natural inclination is to put my money somewhere and leave it there, unless the rate elsewhere is substantially higher. But these Bonuses that are available on these high yield savings accounts change that inclination in me. Since 5-2-05, I've now made $85 in bonuses. 50 at ING, 25 (paid at the end of May) from UFB, and a $10 referral bonus from ING. Not bad, for 20 days.

The bonuses are worth the chase.

Torch - aka al0061

[jmjj215]

The bonuses are worth the chase.

Especially (possibly) if you take that $85 and build it into your APR.

($60 / Balance invested at ING) / 21 days * 365 days in the year

If your balance invested at ING is $5,000 your annualized rate of return is 20.9% The trick is to use as little money as possible to get those bonuses - if bonuses are what you're after.

[terry1156]

Originally Posted by jmjj215

The trick is to use as little money as possible to get those bonuses - if bonuses are what you're after.

And have the the time required to get the bonus as short as possible.

On a side note, banks like ING provide a double bonus...a much higher than standard interest rate plus a bonus. That's the best of both worlds.

[al0061]

Jesse, you're sure good at those numbers. Thanks.
Terry, you're right, about the best of both worlds.
Now that I'm on a saving frenzy, I AM chasing the bonuses. I'm thinking that I'll look into the VirualBank one.
Then I stop and think I shouldn't. It's time for me to continue my learning about actual investing, Roth's, etc, learning about Index funds (to start) and choosing a company to go with. The savings stuff is so much easier, and the investing stuff is so foreign. With as crazy as my work life is right now, I keep putting off the foreign stuff.

Oh, sorry. You just got a 'stream of consciousness' bit there.
Well, off to my crazy job.
Have a great day, all.
Torch - aka al0061

[genchan]

Is anyone else disappointed that ING and Emigrant both haven't moved their rates up with the last two Federal Reserve increases?

[e-personalfinances]

I´ve been banking with ING DIrect and they have a great customer service, and also pretty good interest rates.

[sbsake]

Banks have started to fight back with online savings. Citibank and HSBC now offer a 3.25% on online savings accounts

Example : http://www.us.hsbc.com/personal/personal_home_page.html

[Bluezy]

Emigrant and ING are the forerunners of the high-yield interest for online banking. I'm sure that they will raise yields shortly. Large banks like Citi have such high expenses, they cannot hold high yields for long. And once they have you in an account, they slip in fees to cover what you thought would be profit.

Emigrant has been great to me, by the way. I'm still contemplating an account with ING.

Bluezy