General Online Savings Question

[takeback]

New to this forum.
I have never used an exclusively online savings before and have been researching rates, fees etc.

Discover seems to have one of the better rates now and a low min of $500.
They list a $20 acct closure fee in the first 90 days.

Is it common to "hop" online savings accounts and chase the best rates, as long as the fees don't kill your return? I can see staying for the 90 days, and then if another bank offers a better rate just transferring the funds. IS this naive or a reasonable strategy?

Thanks all.

[Slug]

For account hopping you don't close any account, you just transfer the bulk of your funds from one to the other because it could be only a matter of weeks before you transfer the money back due to an interest rate increase or special CD deal. For me, I use ING and ALLY. There are many other good ones out there too. Seriously considering Sallie Mae.

[takeback]

For account hopping you don't close any account, you just transfer the bulk of your funds from one to the other because it could be only a matter of weeks before you transfer the money back due to an interest rate increase or special CD deal. For me, I use ING and ALLY. There are many other good ones out there too. Seriously considering Sallie Mae.

I was searching for reviews of Ally as they have one of the best no minimum rates now. There was pretty bad comments about their customer service (although not sure how much customer service you need on a basic online savings).....have you had any issues?

Any general feelings on ING vs Ally, one better than the other etc?
thanks

[Hector]

I am using discoverbank and capital one for online savings account right now

I agree with not closing accounts as interest rate keeps changing.

[Slug]

ING customer service is solid.

I have not had the ALLY account as long, and like you suggested, I never need to talk to anyone because it's all online.