ING Direct vs Emigrant Direct Bank

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

JPWRana, it doesn't work that way. If you take your money out 26 days into the month, you will still have earned 26 days worth of interest, regardless of the compounding schedule.

There will be a difference in the amount of interest earned, but it will be ultra-slight -- probably less than a penny.

[okaythen]

Re: ING Direct vs Emigrant Direct Bank

also taking interests out every month vs leaving it there every month..does it really make that big of difference?can someone calculate the differences for 10,000 deposit, 4.5% interest and over a year period

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

Assuming 4.5% interest (not the APY), compounded monthly.

If you withdraw the interest each month: $450
If you let the interest accrue: $459.40

[fratkid21]

Re: ING Direct vs Emigrant Direct Bank

Assuming 4.5% interest (not the APY), compounded monthly.

If you withdraw the interest each month: $450
If you let the interest accrue: $459.40

This is actually significant, assuming you have $100,000 in the account.

[okaythen]

Re: ING Direct vs Emigrant Direct Bank

why is it significant if you have 100k in the account?

[fratkid21]

Re: ING Direct vs Emigrant Direct Bank

because you will make $90 more per year, rather than $9

[CJsoccerchic]

Re: ING Direct vs Emigrant Direct Bank

Goodness, I wish that I had that much money lying around!

[okaythen]

Re: ING Direct vs Emigrant Direct Bank

What's a max safe amount of money that you guys are comfortable with to leave in ED or ING?
especially when it's all your family members money...I know FDIC is 100k so is that what you will go up too? or less any input on this...

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

There are ways around the $100K limit. For example, married couples can have a joint account and 2 individual accounts for $400K in protection.

However, I think it's a good idea anyway to divide your savings between at least 2 banks. If one bank fails, you have another source of money to tap into while you wait for the FDIC to straighten things out.

[mrvirgo]

Re: ING Direct vs Emigrant Direct Bank

Okaythen you have posted an excellent question.

I have 65K with Ing, 50K in a one year CDs and 15 K in savings. I have often wondered what would happen should there be a natural, disruptive event like Katrina or worse yet a terrorist attack on the city where these internet banks are actually located. Eventually, I feel confident I would get my money but because of that, I still keep the bulk of my money here in Los Angeles in a brick and mortar bank where, if worst comes to worst, I can physically make a demand for my cash in person.

By the way, if ING doesn't match ED after April 15th, when their winter sale is over, I am moving 15K to ED. Why get 3.8% when I can get 4.5% on a savings account?

[fratkid21]

Re: ING Direct vs Emigrant Direct Bank

mrvirgo-

you have very valid points.... keep in mind that ING, HSBC, GMAC are all brick and mortar banks as well, they just may not have a local branch near you. I would recommend to keep no more than 100K (individual) or 200K (joint) in any ONE bank. Thats just my personal opinon. And not because of the limits of FDIC, but to keep diversity of banks, in case you have problems with one or the other.

Also, I am going to once again praise GMAC! All those who have HSBC, that is great they have good rates. I do, however, encourage the ING and ED crowd to consider GMAC, they are the easiest and fastest. I have a Visa check card/atm card and a 2 books of checks from them with my account. This way, I know i have immediate access to my cash, in the event of an emergency. Also, their rate is 4.65. And did I mention how fast their transfers are!!!

[sweeps]

Re: ING Direct vs Emigrant Direct Bank

If you're really concerned about a crisis -- terrorist attack, massive bird flu outbreak, whatever -- it may not make much difference whether your money is in an "Internet bank" or whether it's in a "local bank". If you really want to protect yourself, you must have cash on hand.

And for that matter, in a real crisis having cash on hand may not be that useful either. Stores, gas stations, or whatever could be mobbed or completely closed. You should have supplies handy to last at least a month or two.

[Bluezy]

Re: ING Direct vs Emigrant Direct Bank

I do, however, encourage the ING and ED crowd to consider GMAC, they are the easiest and fastest.

Wasn't GMAC having some recent financial problems? If so, what is the status?

I've closed all but my ING account. My rate chasing days are over!

[ken1706]

Re: ING Direct vs Emigrant Direct Bank

ING Direct just raised their non-promo rate on the savings account to 4% APY.

That helps a little but it is way below many others. After their Save Up Sale ends on April 15th, it'll be interesting to see what Emigrant does. It would be a perfect time for their savings account to hit 5%.

[jeffrey]

Re: ING Direct vs Emigrant Direct Bank

ING - ho hum

Ken - a big congrats on the Money mention