Moving Money to Higher Paying Account

[mrvirgo]

I wonder if I am the only one waiting for the end of April to see what ED, Ing and HSBC come up with. I am ready to move all my savings from Ing and ED into HSBC if they don't do something spectacular to meet or beat HSBC.
Is anyone else also waiting to make a shift of funds?

[Ima saver]

Re: Moving Money to Higher Paying Account

I haven't done anything either.

[Haku]

Re: Moving Money to Higher Paying Account

I'm not an interest chaser, but I know several who are and they are all waiting with bated breath. Ha ha.

[JoyJoy]

Re: Moving Money to Higher Paying Account

I'm in for the long haul with HSBC since I like living within a mile of their branch office and because I have a credit card account with them as well.

I like my account with ED also. I'm just not one who wants to bounce around from place to place. It's been my experience that if you chase a rainbow, there will be another one after the next rainfall so why not enjoy the present one?

[Ima saver]

Re: Moving Money to Higher Paying Account

I like having a bank close by, but I do not live close to any of the ones with the good rates. My local bank is paying 4.14% and has been since last summer.

[rob62521]

Re: Moving Money to Higher Paying Account

Your bank is paying better than any of ours. We finally got to 4% in the past three weeks.

[BTC]

Re: Moving Money to Higher Paying Account

I'm curious to see what happens. I'm transferring all of my money out of ING, with the exception of just enough to keep the account active, on 04/17. I'm not sure yet whether I'm going to put it into ED or HSBC.

[SuzeOFan]

Re: Moving Money to Higher Paying Account

I'm not ready to drop ING for a slightly higher interest rate.

Others are just tempting people away from the leader with these little carrots... when in fact these places have all kinds of annoying small type attached to their savings, CDs and whatnots. Many of them have these crummy websites that just aren't very well set up or easy to use.

And isn't that HSBC rate only temporary? What's gonna happen after that?

The others are decidedly NOT easier to use or access when the money is needed. Heck, I'm STILL waiting for my confirmation letter 2 weeks after applying to ED for their 5% 18 month CD program (which I'm also having second thoughts about)

But here's something maybe you all haven't thought about.
While you're shuffling your money from your savings to your checking to another new savings account, there's this waiting period in between. Your money hangs in banking limbo for around a week or longer without making any interest at all. So in the end, you will have lost money you could have been racking up by just staying put.

I love INGDirect. Like Suze Orman, INGDirect gave me the incentive I needed when I needed it. They are SO easy to use! They make every kind of transaction easy. Their CDs are cool too because the interest can get directly deposited into your savings.

They have all kinds of educational programs too! For kids, for educators, for adults... They contributed an outrageous amount of money to the Katrina hurricane victoms. And they have free financial advice and tools (like the financial worksheets ...that I have found invaluable to saving more money besides the interest I make by having a savings account with them...

No. I am a solid fan of ING. And plan to ignore the other johnny-come-latelys...

[BTC]

Re: Moving Money to Higher Paying Account

Not to dog ING as I used to work there, but their rates are no longer competitive and will likely remain that way as long as their customer base remains largely complacent. Even after their recent increase they still trail Emigrant Direct by 12.5% and that's likely to increase. Assuming HSBC's post promotional yield remains at 4.8, that's a 20% disparity. That ain't just carrots, IMO. With a little math you can figure out whether the move is worth it and how long it will take to recover any lost earnings due to float.

[SuzeOFan]

Re: Moving Money to Higher Paying Account

Sorry, I may be a little slow in math, I'll be the first to admit it! But where do you get this 12.5%? The last time I checked ED has only a 4.5% interest rate. ING has 4%. Where's the 12.5% difference?

One thing good though that's come of all these johnny-come-lately's is good ol fashion competition. Good for us! I'm not complacent. I'm keeping a very close eye on everything. Hence finding this forum...!

I'm just waiting for that offer I can't refuse....!
Show me one ...and I'll be there in a nanosecond!

[SuzeOFan]

Re: Moving Money to Higher Paying Account

I think you may have a personal bone to pick with your previous employer? You shouldn't let that color your thinking.
The HSBC rate IS only temporary. Like I said before, what will the REAL rate be after the 3 month happy hour? ING too has been having a special winter savings rate of 4.75%.

I'm as curious as anyone what they will all do when the carrot days are over!
Then we can revisit this conversation and compare notes.

[SuzeOFan]

Re: Moving Money to Higher Paying Account

Sorry.... just had to add that INGDirect just entered the game again and upped the ante...


They are now offering a 12month CD with a 5% APY at a 5% interest rate.
(Effective 4/14/06)


That beats ED CD rate of 5% for 18 months.

Nothing like some good ol fashioned competition to keep things lively!

[mrvirgo]

Re: Moving Money to Higher Paying Account

Thanks SuzeOFan for posting the new (4/14/2006) Ing 5% CD rate info. I had a feeling Ing would do something to stay in the game. I am in no hurry to move money from my Ing savings. I'd feel like a moron if I started shuffling my money around to ED or HSBC only to find out that Ing decided to up their savings account rates as well at the end of April. But if their rate stays at a flat 4% too long and ED and HSBC raise their rates at the end of the month, I will make a move to another bank.

[Snoopy2645]

Re: Moving Money to Higher Paying Account

I am an interest chaser but I only do banks that our in our city or close to it for my cds I dont feel comfortable investing alot in a cd with only a website no reall branch that I can go to KWIM

[BTC]

Re: Moving Money to Higher Paying Account

Sorry, I may be a little slow in math, I'll be the first to admit it! But where do you get this 12.5%? The last time I checked ED has only a 4.5% interest rate. ING has 4%. Where's the 12.5% difference?

One thing good though that's come of all these johnny-come-lately's is good ol fashion competition. Good for us! I'm not complacent. I'm keeping a very close eye on everything. Hence finding this forum...!

I'm just waiting for that offer I can't refuse....!
Show me one ...and I'll be there in a nanosecond!

I was an independent consultant with ING. I have no bones to pick. It was actually a great place to work.

To calculate the yield difference in terms of percentage, I polished off my 3rd grade math skills. Emigrant Direct's yield of 4.5% is 12.5% higher than ING's yield of 4.0%. .5/4 = .125 * 100 = 12.5%. HSBC's promotional yield of 4.8% is 20% higher than ING's 4.0% yield. That equates to 12.5% or 20% more carrots.

Sorry. Didn't mean to spoil the Cheeto Party.