5 replies to this topic

[schumia]

Hi,

After reading through the constantly updated bank rates at http://ibankdesign.c...p?showtopic=540, it puzzles me as to how to decide on a bank to put savings into?

I suppose i'm more inclined towards an online bank, then 2 big names came up as i peruse the list... obviously ING direct is the one where everyone's been putting their money in... but how abt HSBC Online Savings Accnt also at 3.00%?

How to correctly make the decision and what are the factors one should consider?

Thanks for your time!

Jeff

[mir322]

Jeff,

ING does not offer the highest rate. Virtual Bank is at 3.05% ($20 bonus if referred), Emigrant Direct is at 3.25% (no referral program) and UFB Direct is at 3.3% for their High Yield Money Market account (no referral program, but offering $25 to open an account before Aug. 31st.) All of these account have no minimum balance (except VB, which requires an initial deposit of $100).

VB and Emigrant have faster transfers than ING. Emigrant and VB typically transfer money within a business day, while ING takes 2-3 business days. I have heard positive experiences about Emigrant...there isn't much talk about UFB Direct. I do have an ING and VB account - both have been fine with me so far.

Here's a link to a discussion on UFB from Fatwallet: http://www.fatwallet.com/t/52/455945/

Here's a link to a discussion on Emigrant Direct:
http://www.fatwallet.com/t/52/420984/

Here are the websites:
www.ingdirect.com
www.virtualbank.com
www.emigrantdirect.com
www.ufbdirect.com

Hope this helps - let me know if you have additional questions

Miriam
[email protected]

[markber]

  How to correctly make the decision and what are the factors one should consider?

You want to have always the best rate, you may consider opening accounts in several banks that offer top rates and, then, move funds from one bank to another chasing the best rate. My observations suggest that most banks do not offer the best rates all the time. At one moment, ING Direct offered the best rates, now there are > 20 banks that offer better rates than ING Direct. So you may spend a lot of time trying to find a bank with best rates and, most likely, its rates will not be the best in several months.

If you do not want to spend time on getting absolutely the best rate or are not comfortable with having too many bank accounts, you may want to try to research history of bank rates and choose a bank that offers consistently high rates. ING Direct, Virtual Bank, UFB Direct, Emigrant Direct have been consistent in offering top rates of savings accounts. I have copied my list of best rates to MSN Online Banking board for quite a while. You can see past rates of many banks in these threads:

http://groups.msn.co...ID_Message=9574

http://groups.msn.co...D_Message=12341

[schumia]

Hi mir322 and markber,

I really appreciate you taking time to answer my beginner's questions.. I guess there's just too many of them options out there that it makes a daunting task to initially weed out the less worthy ones..

I'm take your advice and investigate on the major ones, namely, ING Direct, Emigrant Direct, UFB and Virtual Bank..

Thanks again for your help and sorry about my late response!

Jeff

[mir322]

Jeff,

Hey, Virtual Bank went up to 3.25%...just wanted to let you know

[doglar]

Hi mir322 and markber,

  I really appreciate you taking time to answer my beginner's questions.. I guess there's just too many of them options out there that it makes a daunting task to initially weed out the less worthy ones..

  I'm take your advice and investigate on the major ones, namely, ING Direct, Emigrant Direct, UFB and Virtual Bank..

  Thanks again for your help and sorry about my late response!

Jeff

ING is not a hungry bank anymore....they bring up the rear like a worn out horse....I would not consider ING until you need the gentlest horse in the world and cannot deal with more of a race horse...