ING Direct vs Emigrant Direct Bank

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

Not meaning to PURPOSELY revive old threads, but this morning I just checked Emigrant's website, and low and behold, they just raised their (ALREADY BETTER THAN ING AND HSBC) rate to 4.50%
Now I am MORE INCLINED to open up with Emigrant

How is Emigrant's rate of 4.5% better than HSBC's rate of 4.8%?

[BTC]

Re: ING Direct vs Emigrant Direct Bank

https://www.emigrant.com

https://www.emigrantdirect.com

HSBC's 4.8 APY is temporary, unless they raise their rates.

I've found Emigrant's processing of transactions to be much, much faster than HSBC. That's something else to consider.

[JPWRana]

Re: ING Direct vs Emigrant Direct Bank

How is Emigrant's rate of 4.5% better than HSBC's rate of 4.8%?

because HSBC's rate of 4.80% lasts only until April (mid april?). You still have 1/2 a year left.

Emigrant's is 4.5% for THE WHOLE YEAR, AND add the fact that their compounding is done daily.

Is HSBC's compounding done monthly or daily?!?!?

[Ima saver]

Re: ING Direct vs Emigrant Direct Bank

Thanks, BTC!

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

HSBC's 4.8 APY is temporary

Aren't all rates temporary?

[fratkid21]

Re: ING Direct vs Emigrant Direct Bank

by far HSBC is the slowest!!!!! Having said that, HSBC has the best rate and a website that is just as good as GMAC. Indeed ED and ING historically had the best and fastest transfer times, HOWEVER, I now found out that GMAC has them all beat!

[BTC]

Re: ING Direct vs Emigrant Direct Bank

Aren't all rates temporary?

True. Maybe they just aren't advertised as such with the exception of the very fine print.

[BTC]

Re: ING Direct vs Emigrant Direct Bank

Isn't the rate of compounding immaterial when talking about yields?

[coffeebreak]

Re: ING Direct vs Emigrant Direct Bank

Emigrant's is 4.5% for THE WHOLE YEAR, AND add the fact that their compounding is done daily.

Is HSBC's compounding done monthly or daily?!?!?

ED guaranteed their rates to the end of 2005. No quarantee this year.

Also, the savings rates listed are APY (Annual Percentage Yield). The compounding is included in that figure. ED's interest rate is 4.4% with an APY of 4.5%. HSBC's interest rate is 4.7% with an APY of 4.8%.

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

You guys are right, compounding is included in the APY.

However, compounding does have some importance if you don't keep your money in the account for a whole year. We're talking small figures but a 4.5% raw interest rate compounded daily is better than the same 4.5% compounded monthly.

[fratkid21]

Re: ING Direct vs Emigrant Direct Bank

Question - ING compounds daily, I assume the others are all monthly, right?

[goodtosave]

Re: ING Direct vs Emigrant Direct Bank

Assuming an interest rate of 4.75%(not APY), the difference of compounding daily and monthly came to about $1 for $10,000 of deposit. So not a real significant amount.

[JPWRana]

Re: ING Direct vs Emigrant Direct Bank

Question - ING compounds daily, I assume the others are all monthly, right?

ING compounds monthly not daily. Or at least that's what I was told in this thread about 6 pages ago.

[okaythen]

Re: ING Direct vs Emigrant Direct Bank

HSBC compounds daily

exactly how much money difference between compounded daily and monthly? let's say a 10,000 dollars over a month period

ahh nevermind...goodtosave just answered it....about 1 dollar per month for 4.75%

[JPWRana]

Re: ING Direct vs Emigrant Direct Bank

what?! you say that like it's nothing!

that's a double cheeseburger a month baby! yeah!

I see it differntly. If I start and open an ING account on Jan 1, i dont get interest until the end of the month. Same scenario with HSBC.

If I have $10,000 on BOTH accounts, and for some emergency I must take all the money out (or alot of it) by Jan 26 due to emergency (pay for someone's funeral, emergency bill, etc.), with ING, I will get SQUAT of interest, because I will have very little.

With HSBC, I would have had interest for 26 days, since it had compounded daily, and lost only 5 days of interest, NOT 1 MONTH.