VirtualBank vs ING Direct

[Fern]

Re: VirtualBank vs ING Direct

Virtual banking is a new concept for me. I've been to both the Virtual Banka nd ING sites, and i think i understand basically how it works, but in practice, how do people here use the account?

Since after the 30 day initial period it still takes up to 3 business days for a transfer to clear, how do you typically use the account? Do you just transfer the bulk of your checking account money there, then do, say, monthly transfers about a week before it's time to pay the mortgage or another big bill?

The 3+% is good, but i don't imagine it would make a big difference unelss you had a lot of money there. Granted, my current checking account pays no interest.

Just trying to learn how people typically use the account, how often they may do transfers back and forth and for what purposes.

[sarahfly]

Re: VirtualBank vs ING Direct

I am currently using VB as an alternative to buying CDs since the rate is better than many CDs at the moment and the money is liquid versus stuck in a CD for 3-12 months. It's a great way to start building up that nest egg for a down payment, a vacation, or a higher yield investment that requires a bigger chunk of money. Once the rates reverse and it's more effective to put money in a CD, then I'll probably switch. But for now it's a quick and easy way to make your money work for you with as little effort as possible -- and no risk since it's FDIC insured.

My monthly expense money is still in my brick in mortar bank since I like to keep things simple (plus, like any savings account, you can only make 5 transfers a month before they charge you a monthly fee of $5 or something like that).