Comments on: Online savings accounts – what’s the catch?

By: The Sarcasticynic

The Sarcasticynic — Mon, 02 Apr 2007 00:42:22 +0000

Yeah, but I do miss that personal interaction with a teller. To have him or her smile and ask how my day has been is priceless. OK, I’m over it.

By: MSMomsmoney

MSMomsmoney — Sat, 31 Mar 2007 16:37:22 +0000

I have an ING savings account and really like having it so far. I haven’t checked into the other online savings accounts yet. I’ve considered the Electric Orange checking account–but I do not see a huge advantage to getting one–since I will still need my regular checking account, and it is free.

By: bluntmoney

bluntmoney — Fri, 30 Mar 2007 23:17:48 +0000

I like the slight delay myself — it’s sort of incentive to plan ahead. I have both an ING and an HSBC account, but don’t have Orange Checking or the HSBC ATM. My theory is that if I really have an emergency I can just put it on the American Express, and then transfer the money to pay it when it’s due.

By: Bas

Bas — Fri, 30 Mar 2007 17:31:36 +0000

I have an ING Internet Savings account in which I deposit $200 automatically every other week, 2 days after I receive my paycheck. They won out over the Citibank internet savings account since even though the latter’s interest rate was somewhat higher, they required you to open a checking account with them. I don’t need any more accounts thank you very much, so they lost.

By: me

me — Fri, 30 Mar 2007 17:30:12 +0000

HSBC’s online savings account (HSBC Direct) eliminates the “catch” by providing an ATM card. Their bank-to-bank transfers still take a few days (some claim they’re slower than ING Direct, Emigrant Direct, etc), but you can also immediately pull your money if you need it. This additional option is great for emergency situations.

By: Peggy

Peggy — Fri, 30 Mar 2007 15:57:32 +0000

Now that ING is offering a checking account, they have eliminated virtually any wait period on your savings as long as you can get to an internet connection to transfer money. Personally, I don’t want that much access to those savings funds so I’m not going to open an account but I imagine for some, this is the last barrier to using these much better rates!

Peg

By: Clifford

Clifford — Fri, 30 Mar 2007 14:04:19 +0000

I have both an ING Direct and Wells Fargo PMA account, paying 4.5% and 5% respectively. It takes a few days to get money in or out of these accounts but that’s alright. If I’m worked up about buying something, this forces me to think for a few days and cool down before the money arrives. It helps more than it hurts, let’s put it that way.