Does anyone here have an online savings account?

@thyst07 (2091)
United States
April 6, 2009 6:01pm CST
Not the kind with your local bank where you can access your account via their website, but something like ING Direct or ShoreBank where your entire account is online? These kind of accounts have higher yields than regular bank accounts, but I'm wondering what other people's experiences have been. So if you have one of these accounts, which company do you use, and do you like them?
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8 responses
@nanamag (20)
• United States
6 Apr 09
I do have a couple of on line banking accounts. I find the interest accumulates nicely and due to the fact that I have opted not to have an ATM or Debit card for them, it is less than convenient to get my money which, as you might imagine, helps the balance grow. I have a regular savings, a Roth Ira and a CD account. So far so good. I am sorry that I do not feel comfortable telling you which "bank" I use but, I am happy with it and have referred a couple of my friends as well.
@thyst07 (2091)
• United States
6 Apr 09
I can't really put any money into a CD right now, because I don't have any assurance that I won't need it for the length of the CD. The job I'm at right now is a temporary one and I don't know if I'll get a permanent offer when my temp status is over. But I do want to try to start saving a little bit each month so that I've got something to fall back on, so I'm looking for a savings account. It's ok that you don't want to reveal your "bank" name (can't be too careful these days) but would you be ok with sharing what interest rate you're getting on your savings? I just want to compare rates to see if what I'm getting is comparable to what others are getting.
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@ZephyrSun (7385)
• United States
7 Apr 09
We have a sharebuilder account if that is what you are talking about. It's not bad sometimes it's a little slow transferring money from that account to our checking account but most generally it all works fine. My husband's employer deposits the money from his pay check into sharebuilder.
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@thyst07 (2091)
• United States
7 Apr 09
Isn't Sharebuilder an investing account rather than a regular savings account? I know that it's through ING, but other than that I don't know much about it. I'm reluctant to touch anything that has to do with investing or stocks right now.
@ZephyrSun (7385)
• United States
7 Apr 09
We use ours as just a savings account. You as an account holder can use it either way. They don't say anything about not investing.
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@thyst07 (2091)
• United States
7 Apr 09
Ah, I see. Their website doesn't make that very clear. Thanks.
• United States
6 Apr 09
All I can say is be very careful. These are virtual banks as far as I can ascertain. Where exactly is the money if an actual bank doesn't exist? I imagine the yields are higher because the risk is higher. If they are not real "brick and mortar" banks, I wouldn't trust them. ‹(°¿°)›
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@thyst07 (2091)
• United States
6 Apr 09
Most of the ones I've been looking at do actually have "brick and mortar" locations, but also offer online services. In addition, they are FDIC insured. I wouldn't even consider it if they weren't.
• United States
7 Apr 09
Then they're not really "online" banks as you asked about. They're just banks that offer online services. If they're "brick and mortar" banks that's not the way it's described in your discussion. ‹(°¿°)›
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@thyst07 (2091)
• United States
7 Apr 09
What I mean is that the companies usually have physical headquarters where things are managed from, offices and such. The entire business doesn't exist exclusively in cyberspace. That would just be too dangerous. Sorry I wasn't clear on that.
@Jennlk84 (4219)
• United States
7 Apr 09
My fiancee has an ING account. I'm actually thinking about opening one up here in the next couple of months, also. They're secure and safe. Accounts from ING are protected just the same as your money at the bank. The interest rates are very high too! I'd highly recommend it.
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@thyst07 (2091)
• United States
7 Apr 09
Thanks for the recommendation. A lot of people online really seem to like their ING accounts, so that's why I'm currently considering it.
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@echomonster (2227)
• Greenwood, Mississippi
6 Apr 09
I have a savings account with Emigrant Direct. Unfortunately, they've halved their rates in the time I've been with them, but I'm happy with the online access and ease of use. It was quite easy to setup and fund the account, and transferring money to from the account is also easy. Online savings accounts are a good, safe way to grow your money, but they've definitely become less attractive due to the crashing interest rates. You should look up the Bank Deals blog if you're interested in shopping around -- that's how I found Emigrant originally, and I read it all the time to keep up on the new offers.
@thyst07 (2091)
• United States
6 Apr 09
Yeah, the slippery slope of lowering interest rates really sucks, but that's true for online banks and physical banks. The bank I'm currently with gives me 0.35 APY on my savings, which is about average around here. But ING Direct, for example, offers 1.50% APY. That's 4x what I'm getting now, and ING is one of the lower rates (although their customer service rating is much better than some of the higher-interest companies).
• Singapore
6 Apr 09
hi i have two with me ,one is ocbc ,and other one is posb,i guess you could have ocbc in your country is international. and is good . to my country is save .
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@thyst07 (2091)
• United States
6 Apr 09
I haven't seen either of those listed on the sites I've been searching, but I could probably look up the international one. I think I'd prefer something that operates in my own country, though, just for ease of access.
@adam1980 (517)
6 Apr 09
no for two reasons, firstly i dont trust online banking as you can never be sure of how secure it is and secondly i never have any money left to save at the end of the month
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@thyst07 (2091)
• United States
6 Apr 09
Most of the major financial institutions are rated pretty highly for their online security, but I agree that it can be scary these days.
1 May 09
I currently have accounts with HSBC online savings account and also ING saver ISA. I used to have good rates of interest though when the rates started tumbling down, I withdrew the money and started investing in stocks. With the stocks over 1 year I think interest rates could yield well in excess of 100% if the stocks are well chosen and of course rise in value based on luck. Savings accounts themselves tend to be low interest and also are taxable so another no no for me.