ING Direct vs Emigrant Direct Bank

[robby]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

Baselle:

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

Bluezy

[jmjj215]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

I see MetLife Bank is at 3.05%.

[robby]

Re: ING Direct vs Emigrant Direct Bank

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?

[VJW]

Re: ING Direct vs Emigrant Direct Bank

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/products/ibonds_glance.htm

[baselle]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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]

Re: ING Direct vs Emigrant Direct Bank

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

Torch - aka al0061

[terry1156]

Re: ING Direct vs Emigrant Direct Bank

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