Advice on Online Saving's

[Starry436]

I keep hearing about online savings accounts and I need more information on these. I am not one who easily trusts new things and it takes lots of research and convincing for me to trust certain things. That being said, other than a traditional savings account at our bank, I really don't know the other options out there for storing our savings.

I want to start being smarter with our money. We're earning cents on our savings sitting at wells Fargo right now. I recently read a blog on Marcus by Goldman Sachs online banking and thus my investigations start... Can anyone fill me in on Online banking pros and cons? Where's a good place for a young person to store their savings that's secure and safe?

[bjl584]

I used to have several online accounts about 10 years ago when interest rates were at 5% or more.

There is nothing really all that different about having an online account. There is just no physical building to go to. Everything is done electronically. If you need money immediately this could be a CON. If you make an electronic transfer it might take a day or two to hit your account, but other than that I had no issues with online banking.

[sblatner]

I have Barclays online savings accounts that are paying 1.65% interest. I've never had a problem and when I call with a question, they are super helpful. It does take a day or two to transfer money between accounts.

Our son has an Ally Bank account and doesn't have issues either.

[msomnipotent]

I had a slight hiccup when signing up for the Capital One money market account. I called them and had it straightened out in a minute. I don't remember what the problem was but the new account wouldn't activate at first. I'm 90% sure it was something I did or didn't do. I get money transferred within a few business days and I can't complain about the interest rate. I would not recommend HSBC. Paltry interest, poor customer service, and it takes 5-7 business days to get money transferred. I called them to close the account and the guy actually told me no. It did not go over well, but I still have the account. I just keep it as my "worst case scenario emergency fund" and only put $100 a month in it.

Don't forget to shop for bonuses. I started to sign up online for Cap 1 and decided to look for a higher interest rate. When I came back to the Cap 1 website, a code for a $200 bonus popped up. So even if the company you choose doesn't have a bonus available outright, you might be able to get one.

I would not lock myself into a CD right now, especially one that is longer than 12 months.

[snafu]

https://en.wikipedia.org/wiki/Online_banking .

I believe the initial authorization for 'Virtual Banking' was sought in 1978. Wells Fargo Bank has been fined yet again for failing to abide by banking regulations.

[Starry436]

I'm not a fan of wells fargo anymore, too many issues too close together and unless we hit every credential each month we get fees on every account. We've had our debit card numbers stolen multiple times, they don't call to alert us. And when you call them it's always some less than friendly rep plus some other issues that were a hassle. I've been their customer for a number of years but I'm having more bad experiences than good lately.

I really hadn't heard of online savings until recently, as I get older I've definitely realized that I need to get more savvy when it comes to saving money and making money on that money. I'm going to look into the accounts that you all have mentioned.

[Drake3287]

Being in my late 50's you'd think I would be the last to use online banks but in fact I started using them a couple of years ago and have never had an issue. Nothing but good service.

I started with a $100,000. Capital One 360 CD when they were offering a $500. bonus for opening an account. It's currently paying 2.25%. I also have 2 other $100,000. CD's in brick and mortar banks and when they come up for renewal I plan to open CD's with Ally Bank and Synchrony Bank which are also paying either 2.25% or 2.35%. And no, not all my savings/investments are in CD's.

As long as it's FDIC insured I'm fine with them.

[disneysteve]

I'm with Capital One. My daughter is with Ally. Both are great, though Ally pays better. I'm probably going to switch. They are at 1.6% for any balance. Capital One's saving account is at 1% and their money market is only 0.85% unless your balance is over $10,000 at which point it's 1.6% also.

[TexasHusker]

Online Saving's? Is that apostrophe in there to keep the "s" company?

[Starry436]

I don't correct my phones idiocy anymore. It puts commas after everything, my texts, look, something like, this.

[chestynuts]

Well, I have my online accounts and hoping I would not experience any risk at all. I actually check those from time to time.

[Nutria]

Thumbs up to Ally!!!! I like it's website, ACH transfers always work, and the online savings account pays a competitive rate.