Online Savings Accounts & Current Rates

[m3racer]

Looks like Wachoiva is starting online banking. 3.5%, but with 10k, it's 3.75% if you're in the right zip code, like CA.

Lot of fees though, like outgoing transfer fee.

www-wachovia.com/savings/money-market.html

Outgoing electronic transfer fee? No one in their right mind will sign up for that account.

[weissheit]

I've transitioned my working funds (checking & MMA) over to Century direct to maximize interest on them. I've put my rainy day funds in Capital One Costco online savings. The Costco/Capital One Joint marketing program gives you an extra 20 or 60 USD (for regular and executive members respectively) and if your balance is over 10k you get 3.75% APY. All of these rates are not able to keep up with the ramped inflation out there but you've got to keep your funds in safe, liquid FDIC insured accounts somewhere and this arrangement appears to be the best I can find out there. Anyone see/find anything better? Thanks in advance.

[emmy123]

This is quiet helpuf. Thanks

[mrpaseo]

* Special Online Savings 3.50% Annual Percentage Yield (APY) is accurate through 09/15/08. Minimum balance to obtain APY is $1.00. HSBC reserves the right to change or terminate this promotion at any time. Any change or termination will not affect existing customers who took advantage of the promotion. After promotion period interest rate and APY are variable and subject to change.

[mrpaseo]

Does that actually say through 09/15/08...lol. I wonder what it is after that.

[weissheit]

New Entrant into the online savings bank arena:

https://www.dollarsavingsdirect.com/DollarSavingsDirectWeb/index.jsp

A division of Emigrant direct. Not sure why Emigrant did not just raise their rate.

CNN article:

Online bank touts 3.75% savings rate - Aug. 25, 2008

Basic terms:

3.75% APY for deposits of 1k+

[sweeps]

HSBC struggles with customer transactions after crash of computer system

[saverbootay]

I wonder if DollarSavings will make us mail in checks again to get external accounts setup. I wonder if they can just take our info from our EmigrantDirect account.

Anyone have a gut feeling on where they think interest rates are going? Wamu has an online 12 month CD for 5% currently.

[kork13]

realistically, the economy cannot suffer the Fed cutting the rates again, which is why they have quit that policy and have held it constant recently. So in theory, the Fed's rates can only go up, and banks tend to tie savings account interest (at least somewhat) to the Fed rate's ups and downs.

That said, however, our economy is in a sticky place... Inflation prevents Fed rates from coming down, but the suffering economy warns against it being brought up. So on that count, it's anybody's guess.....

I wasn't good in my economics class (figures, huh? here I am as one of the more "financially stable" posters ), but I know the government has other means besides the Fed rate to influence the economy..... does anyone understand it better who can explain those things, and perhaps the likelihood (and potential effectiveness) of those processes being utilized?

In either case, I think if any change occurs, rates are going to very slowly begin to rise. Personally, 5% is a very nice guarantee if you don't plan on needing the money within those 12 months.

[saverbootay]

Interesting, Emigrant's BancoFortuna Fortuna Savings website redirects to this new DollarSavings site. Maybe if you had a BancoFortuna account, it automatically converted to a DollarSavings account.

I guess inflation will play a large part in the Fed's decision. In that case, maybe it'd be worth it to lock up some cash for 12 months at 5%.

[weissheit]

I'd steer clear of WaMu they specialized in toxic mortgage lending, their stock is down over 90% Y-O-Y and while I do not know their Texas ratio I do know they are dealing with alot of non-performing assets they need to take more write downs on. Basically by offering such short term above market interest rates they are signaling the significant need for capital/liquidity and I for one do not want to see how long the FDIC takes to send me back my money after they take over another bank that over indulged in the RE bubble.

[okaythen]

hi guys everytime I signed up for some high interest online saving account, half year or so later they will drop their rate to pretty low. What are some online savings banks that offer consistant, decent,and are reputable banks? thanks

[weissheit]

hi guys everytime I signed up for some high interest online saving account, half year or so later they will drop their rate to pretty low. What are some online savings banks that offer consistant, decent,and are reputable banks? thanks

Century Direct & provident seem to be the most steady/stable in terms of rate offerings.

I'd stay away from any bank that is linked to toxic mortgage lending, e.g. HSBC, WaMu, AmTrust etc.

Good luck, I feel your pain I've had to switch way to often to keep a decent APY

[okaythen]

Century Direct & provident seem to be the most steady/stable in terms of rate offerings.

I'd stay away from any bank that is linked to toxic mortgage lending, e.g. HSBC, WaMu, AmTrust etc.

Good luck, I feel your pain I've had to switch way to often to keep a decent APY

hey thanks a lot, so century direct and provident.

You got a link for the toxic mortgage lending banks? thanks

[aurielle]

HSBC struggles with customer transactions after crash of computer system

I had just transferred a large amount (to me) of money the week before to purchase a used car. I didn't even know about the system failure until I got an apology email from HSBC. Thank god the transfer had already gone through, I would have been HIGHLY upset if I didn't have access to my money. The article in the above link is scary. I'm thinking of switching to ING now.