Online Savings Accounts & Current Rates

[poundwise]

Well, I called FNBO ready to cancel my account, but I spoke with a gentleman who was able to straighten everything out for me and fix the online problems I've had. Kudos to them for excellent customer service.

I should be off and running for now and will see how everything works out.

-an

Thank you for posting about your experience with FNBO. They are relatively new to the list and, until you, I did not know of anyone specifically who had opened an account with them.

[poundwise]

Update, May 1st

Amboy Direct Premium rate drop from 5.25% APY to 5.05% APY

Capital One rate drop from 5.00% APY to 4.75% APY

HSBC 6.00% APY promotion ended in April

New FNBO 6.00% APY promotion through September

E*TRADE $25 sign-up bonus ended in April

[RJB1180]

Apple Bank Grand Yeild

from apple bank
"With a great rate and direct access to your savings account, Grand Yield Direct is the worry-free choice for savings. Just $1 to earn interest and $2500 to open. So relax… your banking is done for the day."

[poundwise]

from apple bank
"With a great rate and direct access to your savings account, Grand Yield Direct is the worry-free choice for savings. Just $1 to earn interest and $2500 to open. So relax… your banking is done for the day."

Hm... that's new. Thanks for the heads-up.

[krayziebone33]

I'm not trying to sound crass or disrespectful, but why do some people on this board still have ING accounts? There are so many other banks that offer way better interest rates than ING. What is it about them that keeps people signing up/maintaining accounts with them? I just don't get it. Is their website that much better than some of the others? Are their transfer times instantaneous? Is their customer service far-and-away better than the other online banks? Can someone shed some light?

[kv968]

I'm not trying to sound crass or disrespectful, but why do some people on this board still have ING accounts? There are so many other banks that offer way better interest rates than ING. What is it about them that keeps people signing up/maintaining accounts with them? I just don't get it. Is their website that much better than some of the others? Are their transfer times instantaneous? Is their customer service far-and-away better than the other online banks? Can someone shed some light?

I think it's a combination of marketing, ease of use and complacency. ING is one of the oldest and best known online banking sites so people sign for up them without really knowing about the others out there. The $25 sign-up bonus probably plays a big part too. If someone is looking to get into high yield online savings accounts they're likely to ask a friend, who probably has an ING account, about them and when that friend says they can give them a $25 bonus for signing up, the deal's done. Once the account is set up, it's just a matter of complacency with not wanting, or knowing, to chase the best offers out there. Even if they do know about them, most don't feel it's worth their efforts for the extra 50 basis points difference in interest to open yet another account. That's my opinion anyway. And just as a disclaimer, that's somehow I got an account with them but have since switched to GMAC.

[safari]

I'm not trying to sound crass or disrespectful, but why do some people on this board still have ING accounts? There are so many other banks that offer way better interest rates than ING. What is it about them that keeps people signing up/maintaining accounts with them? I just don't get it. Is their website that much better than some of the others? Are their transfer times instantaneous? Is their customer service far-and-away better than the other online banks? Can someone shed some light?

For people with lower balances it makes sense to open an account with ING to get the $25 bonus. If you're depositing $1,000, the difference between ING's 4.5% and GMAC's 5.3% is only going to be $8 a year. Then after people get their $25 bonus from ING, they just leave the money there because they don't want the hassle of opening a new account and transferring the money there just to earn an extra $8 a year.

[m3racer]

Here'a an update on my experience with FNBO Direct. Setting up linked accounts was fairly easy. It's not lilke GMAC where you have to verify micro-deposits with the linked accounts. However, it did take 4 business days before the transferred amount was considered complete in my FNBO savings account. I'm not sure if this is considered a long time or not. Otherwise, everything appeared smooth.

[poundwise]

Updates: May 19th

Indy Mac rate drop from 5.00% APY to 4.75% APY

Zion's Bank rate drop from 5.30% APY to 5.18% APY

Umbrella Bank rate drop from 5.10% APY to 4.95% APY

Also, Umbrella Bank has reneged on their promo offer. They offered a higher rate through July 2007 and then discontinued that offer. They now employ a tiered system that requires a minimum balance of $1000 to earn the reasonable rate listed here.

[kv968]

Uh oh, how long until our beloved GMAC follows suit and drops their rate also?

[poundwise]

Uh oh, how long until our beloved GMAC follows suit and drops their rate also?

I don't know but I've actually been impressed that GMAC has held the rate for a while now.

There was a time when they fluctuated up and down. Though it was not by any great amount at any time, it was annoying.

After having managed this list for so long, I can say that GMAC appears to be one of the better choices.

[vsjhoc]

[Updated 05/19/07]

UFBDirect (High-Yield): 5.31% APY link
$1 to open/No min to avoid fees
Note: Offering this high of a rate is relatively new for this bank. May be

Lbwise - you can probably update this comment (which got cut off some time ago anyway) -- I've been with them for 7 - 8 months and the rate has been constant. Or do you have a longer time for rates to prove themselves?

[poundwise]

Lbwise - you can probably update this comment

Done.

[sofiafamily]

Thanks so much! I've found that GMAC treated me the best and was very quick with transactions, etc. GMAC gets my vote and my money anyday!

[lindadylan]

Thanks so much for the info on high interest savings banks. I used this info to choose AmTrustDirect which offers the highest interest of all listed. I have had them for a couple months now and couldn't be happier. In a couple weeks I have a cd that is maturing, and I am going to transfer that money to a cd at AmTrust. Thanks again for the most helpful info.