Best online savings account in 2011?
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Best online savings account in 2011?
Hi Bogleheads.
What would be the best online savings account available in 2011? The purpose of this account, for me, would just be for saving up towards specific purchases, where I don't want the money invested in the stock market.
I'm looking for a combination of high APY rates (relatively speaking), zero fees, ease of use, and high bank stability.
Ideally, this bank should also offer high-yield CDs with good terms.
My consideration set right now consists of: Ally Bank, Discover Bank, ING Direct.
I'm certainly open to more ideas.
So what's the best option?
What would be the best online savings account available in 2011? The purpose of this account, for me, would just be for saving up towards specific purchases, where I don't want the money invested in the stock market.
I'm looking for a combination of high APY rates (relatively speaking), zero fees, ease of use, and high bank stability.
Ideally, this bank should also offer high-yield CDs with good terms.
My consideration set right now consists of: Ally Bank, Discover Bank, ING Direct.
I'm certainly open to more ideas.
So what's the best option?
I think they're all going to give you the same thing, more or less.
ING and Ally have great interfaces. Discover's used to be dreadful, although I've been told that they revamped it.
Ally has more flexible CD options, so if that's something you may be looking for, I think they should get the nod.
The ones you named are all top notch though. It's hard to say that any one is better than the other. American Express ain't bad either.
ING and Ally have great interfaces. Discover's used to be dreadful, although I've been told that they revamped it.
Ally has more flexible CD options, so if that's something you may be looking for, I think they should get the nod.
The ones you named are all top notch though. It's hard to say that any one is better than the other. American Express ain't bad either.
Coulee Bank's 3.03% Checking
They used to pay 3.33%, and I've had them over a year.
http://www.couleebank.net
4 star safe+sound
http://www.bankrate.com/rates/safe-soun ... =&c=&s=&z=
They used to pay 3.33%, and I've had them over a year.
http://www.couleebank.net
4 star safe+sound
http://www.bankrate.com/rates/safe-soun ... =&c=&s=&z=
- Grandpaboys
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- Opponent Process
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They may be great, but it's a bit misleading to compare a rewards checking account with its myriad of restrictions and requirements to a general, free online checking account.gsmith wrote:Coulee Bank's 3.03% Checking
They used to pay 3.33%, and I've had them over a year.
http://www.couleebank.net
4 star safe+sound
http://www.bankrate.com/rates/safe-soun ... =&c=&s=&z=
For someone looking for ease of use, a rewards checking account is a bad plan.
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We use Ally for its savings account, and also use its checking account as an emergency backup/for travelling abroad (not free at foreign ATMs, but lower fees than our regular bank, which is Chase). Something convenient is that they seem to do instant transfers between internal accounts, so if we ever really need cash right away, more than what's in our checking account (or if our regular account was frozen or inaccessible), we can make that transfer.
if you're a CostCo member, Capital One offers 1.15% APR with a $20 or $60 kickback to CostCo members plus a quarterly bonus over $10K balances
http://www.capitalone.com/directbanking ... 5_G_COIPSA
http://www.capitalone.com/directbanking ... 5_G_COIPSA
- monkey_business
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That's what I've been using for years. Always had some of the best rates.PaddyMac wrote:if you're a CostCo member, Capital One offers 1.15% APR with a $20 or $60 kickback to CostCo members plus a quarterly bonus over $10K balances
http://www.capitalone.com/directbanking ... 5_G_COIPSA
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I recently opened an Ally account, getting their 5-year CD.
Now I'm thinking about getting either their Savings account or Money Market Account. Rate is about the same for both and both are FDIC insured. So which should I get? Any reason for one over the other?
P.S. I suppose I can call Ally directly and ask them. But I saw this thread which is timely for me to ask here.
Now I'm thinking about getting either their Savings account or Money Market Account. Rate is about the same for both and both are FDIC insured. So which should I get? Any reason for one over the other?
P.S. I suppose I can call Ally directly and ask them. But I saw this thread which is timely for me to ask here.
- touchdowntodd
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I use Alliant Credit Union for almost all my banking needs these days. I've had no problem. Joined the National PTA to be eligible to join. Pays 1.15% APY for savings, and almost as much for checking.
One reason I joined was the (still) 2.00% APY for an HSA, no fees.
One reason I joined was the (still) 2.00% APY for an HSA, no fees.
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There's two interesting products I wanted to mention: Capital One Rewards money market. The signing bonus is 2500 miles, then the interest rate is 0.75% apy cash plus 6000 miles (another 0.6%).PaddyMac wrote:if you're a CostCo member, Capital One offers 1.15% APR with a $20 or $60 kickback to CostCo members plus a quarterly bonus over $10K balances
http://www.capitalone.com/directbanking ... 5_G_COIPSA
While the interest system sounds a little funny, the advantage is that you are only taxed on the 0.75% given as cash. The 0.6% given as miles is not taxed, so if you are able to liquidate your miles easily, this is akin to a 1.60% account, assuming 25% federal and 5% state income tax bracket.
If you have a Venture card, you should be able to attain 1 mile per cent redemptions on gift cards, car rentals, hotel stays, and airfare, so you won't be constrained to the redemption schedule listed on the site. If you don't have a Venture card, then I'm not sure how disadvantageous the mileage redemption will be vs. getting all interest as cash as per the other accounts mentioned in this thread.
Second product: a bankdirect account that gives interest strictly as miles, so you won't owe any income tax at all. 100 miles per $1k per month works out to 1200 miles a year, or 1.2% interest, assuming a value of a cent per mile.
It depends on the priorities. High API was on the top of the list. And many rewards accounts don't have a "myriad" of restrictions. Setting up one automatic bill pay and and using their card a dozen times for small transactions seem worth 3% - 4% API to me.kenyan wrote:They may be great, but it's a bit misleading to compare a rewards checking account with its myriad of restrictions and requirements to a general, free online checking account.gsmith wrote:Coulee Bank's 3.03% Checking
They used to pay 3.33%, and I've had them over a year.
For someone looking for ease of use, a rewards checking account is a bad plan.
+1PaddyMac wrote:if you're a CostCo member, Capital One offers 1.15% APR with a $20 or $60 kickback to CostCo members plus a quarterly bonus over $10K balances
http://www.capitalone.com/directbanking ... 5_G_COIPSA
I've been a Capital One customer for years, first with a branch account, and now with an online direct banking account. I recommend them highly. Good and prompt customer service, good interest rates (1.00% for online checking, 1.15%+bonus for the CostCo online savings), and flexible and reliable bill pay and ACH transfer services via their website.
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- Dan-in-Virginia
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I opened up a MMA savings account with Ally a month ago and transferred over assets I held at Everbank in a MMA.
The reason I did this was to take advantage of the Ally 5-year CD earning 2.4% with a 60 day interest penalty upon early withdrawal. That's the least harmful (aka most generous) CD penalty in the industry.
AMEX, by contrast, is not so generous.
http://www.depositaccounts.com/forum/th ... neral.html
Since then I opened up one $20K 5yr CD and I'll be opening up another $20K 5yr CD in about three weeks.
The banking interface is sweet. Not quite as great as USAA, but they have streamlined and simplified the design so even a caveman could use it.
The reason I did this was to take advantage of the Ally 5-year CD earning 2.4% with a 60 day interest penalty upon early withdrawal. That's the least harmful (aka most generous) CD penalty in the industry.
AMEX, by contrast, is not so generous.
http://www.depositaccounts.com/forum/th ... neral.html
Since then I opened up one $20K 5yr CD and I'll be opening up another $20K 5yr CD in about three weeks.
The banking interface is sweet. Not quite as great as USAA, but they have streamlined and simplified the design so even a caveman could use it.
Re: Best online savings account in 2011?
I am bumping this old post to get ideas for 2012.
I want to start saving for an emergency fund and was wondering what bank or what kind of account I should use. Currently, my check will go directly into USAA checking. I can keep it there, but I'd rather have the money taken out so it is not visible and less likely to be spent. Any ideas on what to best use for an e fund? Thanks.
I want to start saving for an emergency fund and was wondering what bank or what kind of account I should use. Currently, my check will go directly into USAA checking. I can keep it there, but I'd rather have the money taken out so it is not visible and less likely to be spent. Any ideas on what to best use for an e fund? Thanks.
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Re: Best online savings account in 2011?
Interesting that nobody mentioned TIAA Direct.
Re: Best online savings account in 2011?
I have ING and I like the interface, however, they have .80% apy, and other online banks are currently around 1.00% - 1.25%.... to me that's a bit unacceptable being that everyone is so low already, at least they should be like gas prices (competitors are maybe a penny difference). I would look for 1.25% apy online banks first, Interface second.
Re: Best online savings account in 2011?
I can't find any for 1.25%. Where are you looking?tjstogner wrote: I would look for 1.25% apy online banks first
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)
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Re: Best online savings account in 2011?
We are using Consumers CU, which has 4.0% for balances upto 10k. DH and I each have an account. There are some hoops to jump through, but they can be easily gotten around by the popular methods (see Fatwallet for more info).
edit: oops, they only pay 3.09% now.
edit: oops, they only pay 3.09% now.
An elephant for a dime is only a good deal if you need an elephant and have a dime.
Re: Best online savings account in 2011?
I did check Consumers CU - the 3.09% is correct, but only up to $5,000. Beyond that it is .20%.bungalow10 wrote:We are using Consumers CU, which has 4.0% for balances upto 10k. DH and I each have an account. There are some hoops to jump through, but they can be easily gotten around by the popular methods (see Fatwallet for more info).
edit: oops, they only pay 3.09% now.
I use Ally for my savings. Everything goes into 5 year CD's which pays 1.69%.
If I cash in before 5 years the penalty is only .34%.
I have layers of $2,500, $5,000, $10,000 and so on.
So should I need any, I could take out virtually any amount
I want without disturbing the rest.
It's not likely but the withdrawal policy could change if
rates suddenly spike upwards. That is true of any bank.
Re: Best online savings account in 2011?
I am pretty sure that http://www.depositaccounts.com is the authoritative source on this topic.Gemini wrote:I am bumping this old post to get ideas for 2012.
I want to start saving for an emergency fund and was wondering what bank or what kind of account I should use. Currently, my check will go directly into USAA checking. I can keep it there, but I'd rather have the money taken out so it is not visible and less likely to be spent. Any ideas on what to best use for an e fund? Thanks.
They have listings of checking accounts, savings accounts, reward checking accounts (where you get a big interest rate boost up to a certain amount as long as you use the debit card), etc. Here's their "best interest rates" summary update from last week: http://www.depositaccounts.com/blog/201 ... -2012.html
Re: Best online savings account in 2011?
Ally's Online Savings rate has been trending upward again. Currently 0.95 % which is almost double the VG Short Term Bond Index yield.
All the Best, |
Joe
Re: Best online savings account in 2011?
TIAA Direct is still at 1.24% but as far as I know has stopped taking new customers for the time being.thomasbayarea wrote:Interesting that nobody mentioned TIAA Direct.
Re: Best online savings account in 2011?
Yep, that what their website says.NorCalDad wrote:TIAA Direct is still at 1.24% but as far as I know has stopped taking new customers for the time being.thomasbayarea wrote:Interesting that nobody mentioned TIAA Direct.
http://tiaadirect.com/banking/bank/savings/index.html
I have an account with them [thanks to y'all]
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)