online banks-I'm feeling overwhelmed

[LuxLiving]

Re: online banks-I'm feeling overwhelmed

Poundwise you seem curious as to why folks aren't going with some of these other online banks. I'll just cast my vote in with Bluezy on this one...I'm just a bit leery of all these newer players in the online banking industry.

I'm happier with my ED as it is a brick and mortar American player and is currently offering a decent return AND now I can have my subaccounts w/their newer interface. YEAH for the update!

The INGdirect is okay, rate rather sucks right now and I believe the parent company is in a foreign nation. Love the interface - get the rate up and they could hold all my savings.

So, for now, I'm eyeing HSBC or whatever their initials are, but have yet to make the jump or should I say I haven't reached out to touch them with even a portion of my savings. I want to give others a shot, just haven't got COMFORTABLE enough with them in my mindseye YET. There will always be first adopters out there that bear the risk for everyone. I'm probably a second or third waver. I let others test the waters 'afore me!

[jmjj215]

Re: online banks-I'm feeling overwhelmed

Frankly, I just try and limit it so I can keep things simple.

[Dixiebell]

Re: online banks-I'm feeling overwhelmed

I just looked at the site for Rate Edge and it says you need to live in certain counties in NY or have relatives, etc., there, which I don't. Or am I missing something? Was that the right bank?

[poundwise]

Re: online banks-I'm feeling overwhelmed


ED is not the only solid b-n-m American institition. In fact, they have some stability issues (as seen at bankrate.com), while old, established, American banks like Amboy (and others) are hardly mentioned though they offer higher rates than ED.

Look, I've got absolutely nothing against ING or ED, I just don't buy the 'sense of security' argument. I think marketing has as much to do with it as anything. ING, ED, and HSBC are the heavy marketers with magazine, TV, etc. advertising and, thus, they are the ones talked about most. I was just surprised that on a site of this nature there wouldn't be more serious discussion about other players.

To be blunt, I can see zero reason why anyone would open an ING account now. IF one had an ING account for a while now, I could see why someone might not want to mess with what works for them or in general deal with switching, etc. But why on earth would anybody choose ING over the dozen or so offerings from other institutions that are, and have been offering, consistently higher rates?

Same question for ED. IF you have had an ED account, then sure, why switch from 5.15% to 5.25%? Probably not much cause for most people to mess with. I wouldn't. But, IF you have no account, why would you choose ED over the several other offerings from as high as 5.50% to the more common 5.25%? There is really no reason.

There is a long-standing thread on this site called something to the effect of "ING vs. ED"... I realize that when that thread was begun, this may well have been an issue. Now, frankly, not only is ED clearly outdistancing ING, but the determination of which of these two is best is wholly irrelevant IMO.

Again, so as to limit anyone who wants to argue or flame me for this... I HAVE NOTHING AGAINST ED OR ING... NOTHING AGAINST PEOPLE WITH ACCOUNTS THERE... ETC... At issue for my postings here is the single issue that many people, particularly on this forum, have tunnel vision in regards to the MMA savings account options out there and limit the discussion to one or two banks, virtually inexplicably, in my view.

Understand too, that I am not befuddled as to why people don't agree with me. A person may have a very good reason for going with a certain company on a personal level, however, when it comes to facts and figures, ED, and ING especially, don't seem to merit the attention they are given.

[krayziebone33]

Re: online banks-I'm feeling overwhelmed

I can have my subaccounts w/their newer interface. YEAH for the update!

Can you explain to me how this feature works? How would one set up subaccounts? How did you set up your subaccounts?

[krayziebone33]

Re: online banks-I'm feeling overwhelmed

At this point, I am not limiting my choices to ing and ED-I only mentioned that Dave Ramsey had made a comment about those 2. I have been following the boards, and that extremely long discussion about ing and ED. My request was only to have some people describe their experiences with the bank they are using and have the info. in a new thread so I would not feel overwhelmed in trying to read that old thread again. I was hoping to understand the pros and cons of the different options out there.
Another thing I am trying to figure out is the credit pull. Some people say it does not matter-but a hard pull does affect your credit score to some extent, and I was wondering what people's experiences have been. We are not planning on a new credit card, but we are going to be shopping around for car insurance-and they do a credit check. (By the way, our credit is fine-no problems or late fees, etc. When we got our homeowner's insurance, the agent was shocked at how low the premium was, and she said it was because of our very good credit rating. Yes, we will see if it is worth it to have both policies together. We have had instances where the auto ins. was way overpriced, but the homeowners was good.)
Thanks for any guidance and taking the time to respond.

I don't know if the money you hope to save is sitting in an interest-bearing account but, if it is not, then I would advise that you just pick one of the online banks and get the show on the road. That would be better than having your money sit in your checking account or in your mattress or shoe box or wherever it is. I was kind of like you . . . I wanted to know about EVERY online bank and what the advantages to choosing one over the other would be until somebody kicked some sense into me. I currently have and HSBC and ED account and the only bad thing I have to say about either is that HSBC transfers take a very long time to complete. Aside from that fact I have been very happy with my decision.

[Dixiebell]

Re: online banks-I'm feeling overwhelmed

Well, I finally opened an online account. I know it took me awhile to get it done. Right now, I'm feeling very nervous. It is kind of scary transferring that much money to cyberspace (it's a lot of $ to me, probably not much to most of you). So, for the next few days, I'll be waiting anxiously to hear from eloan to see if everything got processed. Could someone please reassure me that my money is safe-I know it is FDIC insured, and I guess that is what counts. It is going to be a long weekend while I sit around and panic-I am a worrier. So far, worrying has not gotten me too far, but it is one of the things I do best. Pitiful I know. But I am ready to get some interest that actually adds up, (I'm getting 0.03% on the account the money is coming from. Now that is really pitiful!)

[Bluezy]

Re: online banks-I'm feeling overwhelmed

I just looked at the site for Rate Edge and it says you need to live in certain counties in NY or have relatives, etc., there, which I don't. Or am I missing something? Was that the right bank?

Hi Dixie

RateEdge is the online savings for Sunmark FCU in NY State. I do indeed have family in the required area, so I was able to open an account shortly after it was first offered. Unlike other CU's, RateEdge and Sunmark actually call and verifiy your family connection, so security is tight.

In your area where you live, check out the CU's that offer memebership in your area. Consider taking advantage of higher savings rates through something local, slowly working up to an online savings of your choice. If you don't keep it simple in the beginning, you might make mistakes with your money.

Good luck to you!

[Broken Arrow]

Re: online banks-I'm feeling overwhelmed

Don't worry, Dixie. Lots of people on here, including myself, bank online. Nothing bad has happened to any of us that I know of. The worst, I think is some of our interest rates have actually dropped! But really, that's about it.

[sweeps]

Re: online banks-I'm feeling overwhelmed

Nothing bad has happened to any of us

Famous last words?

Just kidding. Dixie, the online banks are FDIC insured so the federal government is on the line if something goes wrong. Having said that, I wouldn't put every last penny in my online bank -- keep a little bit at home and in a local B&M bank for quick access in an emergency.

[Broken Arrow]

Re: online banks-I'm feeling overwhelmed

Famous last words?

Oh come now. What Could Possibly Go Wrong? (tm)

[Bookie]

Re: online banks-I'm feeling overwhelmed

Oh come now. What Could Possibly Go Wrong? (tm)

"FLASH! This news just in: Internet worm crashes world wide web. Blackout initiated to protect uncontaminated servers. Stock Market plummets as electronic financial transfers are halted."

[Ima saver]

Re: online banks-I'm feeling overwhelmed

Don't let them scare you! That being said, almost all of my cash is sitting in two local banks earning 5.25% and 4.05% My problem is, when I sell this house, I will need to spread the money around more to stay close to the $100,000 limit for each account.

[poundwise]

Re: online banks-I'm feeling overwhelmed

Don't let them scare you! That being said, almost all of my cash is sitting in two local banks earning 5.25% and 4.05% My problem is, when I sell this house, I will need to spread the money around more to stay close to the $100,000 limit for each account.

That sounds like a good problem to have.