General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDoes anyone here have an Internet Banking Account?
I have a small savings account at Chase (I know, I know, but they're at my food store). The interest rate is, wait for it, 0.01%!
I went to www.ratecatcher.com and saw that with an internet account, such as Ally, I can make 0.87%, with no minimum
deposit or balance. I was wondering if anyone has any experience with these accounts.
FSogol
(45,481 posts)TIA!
NRaleighLiberal
(60,014 posts)Better than the local banks!
Nye Bevan
(25,406 posts)With banks like Chase you are paying for the bricks and mortar locations which is why the interest rate is so low. There are many internet banks that will pay a much higher rate and also give you a checkbook, online billpay, etc.
I also use Capital One 360 (formerly ING Electric Orange).
politicat
(9,808 posts)However, we were using them for everything - checking, debit, savings, credit card, car loan at one point.
I really liked the first one -- great customer service, a reasonable interest rate all around -- but when the failures started happening, the spiral caught them. Our account was transferred to the orange one (IG something?) and it was just more... Complicated. We didn't have access to an ATM any more so everything had to go by mail; they didn't send paper checks at all (though they had excellent mobile ETF options) and we had found a local/regional bank that did everything we wanted.
Quick question: is your savings for something short-term, like saving up for a purchase? Or long-term, like rainy day fund/personal safety net? Or permanent - retirement fund? Savings accounts are fine for under one year, but no savings account is going to be rewarding financially in the long term. The inflation rate and the interest rate are either the same or the interest rate is below inflation, so effectively, you're paying the bank to store your money. (And that had been true for decades -- the savings account my grandmother had in the 60s had a 2% interest rate with a contemporary 2% inflation rate.) Long-term, you might want to look at CDs. The interest rate is around 1%, not great, and they're locked so you have to wait (which is the point of long-term savings) but you can cash out in an emergency. Permanent, you might want to look at an IRA, since those can't be touched without penalty until 55.5.
HipChick
(25,485 posts)One is a pain in the arse, as I keep forgetting my ID/password - on a good note though I have not drawn any money out, so have quite bit stocked up
panader0
(25,816 posts)I'm off now to vote in the Az primary.
jwirr
(39,215 posts)only a debit account. I cannot deposit anything to it. I have some bills that are paid direct.
whatthehey
(3,660 posts)We have one account with CIT Bank which pays 1% on anything above $10,000 and conversely there is a local bank here which pays 2.5% on amounts BELOW $15,000. However you have to meet a minimum amount of bill pay and ACH transactions but it's not very onerous.
rjj621
(103 posts)I'm very happy with it