Comments on: I’m Asking You – Should I Open an Online Savings Account?

By: Andrew Flusche

Andrew Flusche — Wed, 02 May 2007 02:30:27 +0000

Lisa,

Thanks for chiming in here. You’re right that FDIC insurance is the key.

Maybe I’ll get to researching accounts soon.

Take care,
Andrew

By: Lisa

Lisa — Wed, 02 May 2007 01:47:04 +0000

The rates online are much better right now. I have my money online getting 5%. As long as the bank is FDIC-insured, I feel comfortable with it.

By: Andrew Flusche

Andrew Flusche — Tue, 24 Apr 2007 17:45:55 +0000

Thanks for commenting!

I’m a bit surprised by the number of recommendations for ING. They must be doing something right.

Thanks for the word of caution about non-FDIC-insured banks. I would definitely check that with any bank.

Take care,
Andrew

By: Law School

Law School — Tue, 24 Apr 2007 16:47:00 +0000

Some of the highest online interest rates are not FDIC insured. That means your money is not secured by the U.S. government. Rather, your money is only secure if the bank stays in business. This is just something to keep in mind when comparing interest rates.

Like your other readers, I have had a positive experience with INGdirect’s Orange Savings Account, which is FDIC insured. One nice feature about that account was being able to transfer money between my brick-and-mortar bank account and INGdirect using INGdirect’s online tools.

By: Andrew Flusche

Andrew Flusche — Tue, 24 Apr 2007 04:52:11 +0000

Brett,

It’s good to hear from you. I’m intrigued by the student loan plan. That’s a great idea!

Finals suck, don’t they?! But it will all be over in a little while. Best of luck to you!

Andrew

By: Brett McKay

Brett McKay — Tue, 24 Apr 2007 00:58:33 +0000

Sorry, I’ve taken so long to get in the conversation. Finals and a brief are holding me hostage from blogging.
Definitely go with an online bank account. I’m with ING right now and I love it. The interest rate kicks my local bank’s 1.4% interest rate butt.

I put all my student loan money in this account and use the interest I earn from the savings account to pay my student debt.

By: Andrew Flusche

Andrew Flusche — Mon, 23 Apr 2007 23:31:55 +0000

Nick,

Thanks for the Citi recommendation. We’ve got a Citi credit card, and I’ve always been happy with their customer service. I might have to check into their online banking as well.

Thanks for commenting,
Andrew

By: Nick Kasoff

Nick Kasoff — Mon, 23 Apr 2007 22:19:13 +0000

I had some cash to park, and just opened one with Citibank last week. I knew there were a few that were higher, but the Citi one had no gimmicks – no teaser rate, no tiered rates, etc. So far, they’ve been great – I had one question, and got phone customer service in a lot less time than it’d take me to wait for a “personal banker” at my local bank.

One thing you’re wrong about, though: It is no less easy to spend your money from this account. They send you a debit card, so spending it is quite easy.

Nick Kasoff
The Thug Report

By: Andrew Flusche

Andrew Flusche — Mon, 23 Apr 2007 14:59:23 +0000

Hi PT-LawMom,

I’m glad the ING account helps curb your impulse spending. I’m not sure it would have that benefit for me. I haven’t given up credit cards…yet. So I’ve always got an easy way to pay for something.

But I definitely like the idea of automatic savings withdrawals. Even if we’re only putting $10/month in savings, it’s something we’re going to start soon.

By: PT-LawMom

PT-LawMom — Mon, 23 Apr 2007 14:19:15 +0000

Go for it! I’ve had an ING account for several years and it’s a great way to save for special things – vacations, new electronics, etc. I do automatic withdrawal every payday and I like that it takes a few days to get my money if I need it. I’m less likely to impulse buy that way.