Question on sub-accounts

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What banks allows sub-accounts? I heard ING Direct is one of them, right? Are there any other ones? Does GMAC do it? Also, how user-friendly is it for online use?

Actually, let me expand that some more. I believe I am almost ready to transition from my current brick & mortar credit union to an online bank exclusively.

What I am looking for is a Money Market Savings account that will accept direct deposit, let me write checks once in a while, and do billpay and transfer to other bank accounts. Sub-accounts and free ATM preferred but not required.

Is there an online Money Market account that can do it all?

[sweeps]

Re: Question on sub-accounts

GMAC and HSBC do not.

This has been said before, but is it worth giving up 1/2% or more to have a subaccounts feature? One could always use Excel to keep savings goals separated.

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Re: Question on sub-accounts

No, I'd rather have higher yields than subaccounts too. That's why it's preferred but not required.

More importantly, can you direct deposit with GMAC?

[jmjj215]

Re: Question on sub-accounts

GMAC and HSBC do not.

This has been said before, but is it worth giving up 1/2% or more to have a subaccounts feature? One could always use Excel to keep savings goals separated.

Sweeps, you forgot to mention that their site is also very orange.

[poundwise]

Re: Question on sub-accounts

This has been said before, but is it worth giving up 1/2% or more to have a subaccounts feature?

Absolutely!

Let me explain. I set my parents up with an ING account. The sub-account feature has been vital to helping them manage their money.

For anyone who is saavy with Excel (which they aren't) or who are otherwise well-organized (also, not) then I'd say go with the interest. However, for them (and me) this feature is wonderful.

Also, as was mentioned, everything is soooo orange.

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Re: Question on sub-accounts

Thank you for the response so far, but I really have to know: Can you direct deposit in ING or GMAC???

This is the biggest thing for me.

[sweeps]

Re: Question on sub-accounts

I believe practically all online banks support direct deposit (given the routing and account numbers). Especially GMAC which sends you a checkbook for free -- you can always use one of those checks (voided of course) to set up direct deposit.

Keep in mind with money markets you typically get a maximum of 6 transactions per month. May not be an issue, but could be a factor.

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Re: Question on sub-accounts

Thank you sweeps!

Yes, the six transactions per month is a factor, but my basic plan is to use a credit card to use for my regular purchases, and then just use one of those six transactions to pay off the card every month.

[sweeps]

Re: Question on sub-accounts

No problem. Here is (unofficial) info on how to do direct deposit with ING:

There are two ways to automatically transfer money into your account. One is to setup an "automatic savings plan" where money is transferred, on a regular basis, from your brick-n-mortar checking account to your account at ING Bank. The other method is to use Direct Deposit for third party checks (payroll, affiliate accounts, etc.) To set up an automatic savings plan, you go into your ING account, click on "my links" and follow instructions. To setup Direct Deposit, you go into your ING account, click on the savings account you want money deposited, then click on a link labeled "direct deposit". The form will contain ING Bank's ABA routing number (which is also listed in footnote 3 below.) You can also print the form and give to whoever handles your paychecks.

Source

[BTC]

Re: Question on sub-accounts

I'm surprised that people find the sub-accounts to be of that much benefit. I'm not saying it isn't a handy feature, but I'm taking the money.

Poundwise, are your parents aware they could be getting a significantly higher return elsewhere? Or is this a decision that you made for them?