Online Savings Accounts
Topic In depth:
- Online Savings Accounts vs. Traditional Savings Accounts
- 10 Easy Tips For Choosing An Online Bank
- How to Be Safe With Online Banking
- Is Online Banking Safe?
Online savings accounts are a great way to get the most bang for your buck while still keeping your cash liquid. In most cases you link your checking to your online account and then you transfer money between the two at any time. When you transfer money into this account usually there is a longer than normal hold period.
Because the accounts are mostly electronic and require minimum resources for the banks to maintain, you receive excessively good rates in most cases. The rates on these accounts in most cases will rival, if not beat, the local rates of CDs.
Many people worry about having their money accessible online. I have to say, about 3 years ago I was pretty much a fool for putting my money online. Today though the technology and level of security they offer is great. I feel more secure online bank than going to an ATM in my local town.
Let me share some of my experiences with you:
I keep accounts with these lenders.
1. HSBC Online Savings Account- I have my mortgage with HSBC, so I keep a save to pay off the mortgage account with them. They have always responsive to the market, which can be a good and bad thing. They usually offer a rate that keeps them in the top 25% as far as rates go. They played a lot of catch up with their technology, so they are a little behind in bells and whistles category. But, the better rate always trumphs technology for me.
Customer service is horrible on the phone. You will usually talk to someone in another country who is poorly trained. The last time I called it took about 15 minutes for the support person to realize the question I was asking them. I asked this same question to ING Direct support. ING Direct gave me an answer immediately. Their email support is handled well though. I usually get throughly clear answers.
2. ING Direct Online Savings Account- If their rate was better, I would without a doubt put all of my savings account money with them. The features of their web site is robust and lead the industry. I actually have a better day when visit their site. Their customer support is the best in the business. They actually sound like they love the company and what they are doing. I don’t know who trains these people, but the are awesome!
The sad thing is that the rate sucks in the last 18 months. They once lead the way and now I would say they are in the bottom 25% as far as large online banks rates go.
3. GMAC Online Savings Account-
4. E-Loan Online Savings Account-
5. CitiBank Online Savings Account-