online banks - anyone use them?

Discussion in 'After Hours Lounge (Off Topic)' started by Micah Cohen, Nov 24, 2005.

  1. Micah Cohen

    Micah Cohen Screenwriter

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    HSBC and ING are, apparently, "online banks." They give you a savings account with interest, they say. "6x the national average" of interest on savings accounts, etc. "No minimums, no fees," for the most part. Seems too good to be true: a savings account with all the benefits of my usual, age old Wachovia savings account, except with this tremendous interest bonus.

    Has anyone done this? Has anyone opened an account with one of these online banks? Any opinions, feedback?

    MC
     
  2. JoeyR

    JoeyR Second Unit

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  3. Todd Hochard

    Todd Hochard Cinematographer

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    I've had my ING account for a while- for my cash fund. No problems.
     
  4. Matt Stryker

    Matt Stryker Screenwriter

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    I also have had an account with ING Direct for a while. 3.5% interest, and its incredibly easy to move money in and out, with most transfers taking place the same business day. The intrest rate will probably rise again soon, as some of the other net banks like emmigrantdirect are offering 4%.
     
  5. Micah Cohen

    Micah Cohen Screenwriter

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    Correct me if I'm wrong: You merely stuck the minimum amount, say $2500.00 (which you might have taken out of your run of the mill no-interest Wachovia savings account) into an ING account, and now you rack up interest on that account. Nothing else to know?

    (If this is the case, if all I gots to do is drop some capital into an account and leave it be to get more interest than my normal bank account, I'm in! Please let me know.)

    (I ask all this because, after reading all the literature available at these websites I still feel like they have not answered my most basic questions.)

    Thanks for your insight!

    MC
     
  6. Cees Alons

    Cees Alons Moderator
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    Almost all banks in my country now have an on-line service. I'm using it for more than 4 years now, and it's a charm. For legal purposes it might be wise to make regular prints of some of your statements. If they have a download function, use it, I'd say.

    The higher percentages are based on you doing almost all the data entry work in a manner they don't have to copy themselves. Not more work for you, much less work for them.

    ING is a very respectable international bank, BTW. I don't think your money is at any risk whatsoever there.
    Just study the functionality of the site, and see if it suits your needs.


    Cees
     
  7. Matt Stryker

    Matt Stryker Screenwriter

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    Thats it. They are FDIC insured, which i believe covers up to $100,000 per depositor on an account. You will have to wait around 15 days after you set up the account to move money in and out easily, but that was the same thing that happened to me last year when I opened a new account at Washington Mutual. I did a lot of reading at Fatwallet before i opened my account, and its pretty straightforward.
     
  8. Jon_Gregory

    Jon_Gregory Stunt Coordinator

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    Yep, ING is what I have also. Easy, no catch system. Put money in and earn a better interest rate, simple as that. The transactions can be slow taking sometimes 2 days, but it's a savings account, not a checking.
     
  9. nolesrule

    nolesrule Producer

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    I've used Netbank now for about 4-5 years. There's interest on both the savings and checking accounts. Even the no minimum checking has interest. It's not much, but it exists.
     
  10. Linda Thompson

    Linda Thompson Supporting Actor

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    I'd venture a guess that a portion of it was converted to disc form and fed to your DVD player... Those things have quite an appetite! Very expensive pets... [​IMG]
     
  11. Linda Thompson

    Linda Thompson Supporting Actor

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    Even PayPal's Money Market Fund is back up to 3.99% right now. No major "catches," per se, but the usual PayPal caveats definitely apply if one chooses to keep funds in a PayPal account...
     
  12. SethH

    SethH Cinematographer

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    I've also used NetBank for about 5 years without having any trouble at all. There really aren't fees for anything . . . unless you overdraw or something along those lines. The rates are currently slightly lower than ING, so I'd go with ING if I were opening a new account. These things are very legitimate and certainly earn better rates.

    The biggest catch is making deposits -- unless you have money directly deposited into the accounts, you've got to mail the money in. NetBank recently made a deal with UPS to offer free overnight service to all account holders. It's pretty sweet if you've got a UPS Store close by . . . I'm sure ING probably has something similar, but again, it's a moot point if you have direct deposit.
     
  13. Michael_K_Sr

    Michael_K_Sr Screenwriter

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    I've been using an ING Orange savings account for a couple of months and generally have been quite happy. The interest rate is seven times that of my regular bank's APY on their savings accounts. The only downside is if you need the funds in an emergency it can take two business days to get the money transferred to your checking account. Also, once you make a deposit, the funds on that deposit cannot be withdrawn for five business days. Other than that, it's great.
     
  14. Todd Hochard

    Todd Hochard Cinematographer

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    I'm not even sure ING has a minimum. I think I started with $100, and I use an auto transfer to put another $100 in each month. Then, I transfer additional funds in as I see fit.
     
  15. Micah Cohen

    Micah Cohen Screenwriter

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    Excellent. It sounds like a win-win, financially, especially if I can use it as a sort of dumping ground for a little bit of money per month, money I won't need to withdraw much, just to gain the high interest.

    This is going to be a new years resolution for me. (One I might actually accomplish.)

    MC
     
  16. Micah Cohen

    Micah Cohen Screenwriter

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    I've looked at Netbank, ING and HSBC.

    Are there any others I should scope out?

    I like the idea of opening a high interest savings account and just popping some money into it every month and using it as a sort of investment savings account.

    Thanks for your input!

    MC
     
  17. Todd Hochard

    Todd Hochard Cinematographer

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    Some people use Emigrant. I have no idea about them, though.
     
  18. Micah Cohen

    Micah Cohen Screenwriter

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    Here's something new I'm learning as I research this: Because I am not looking for a bank, per se, only for a place to park some money (which is otherwise not working for me by sitting in a non-interest checking account), I am thinking now about just dumping that money into a couple of my Mutual Funds instead of going to ING or Netbank. I guess I'd give up some liquidity, but I'd easily double-plus the interest rate.

    Still thinking about this...

    MC
     
  19. SethH

    SethH Cinematographer

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    General rule of thumb is to use a money market for investments of less than 5 years and mutual funds for investments over 5 years. If you've got at least 5 years to lock up your money, then go for the mutual fund.

    Also, remember that on average you will "easily double" the interest rate. But if the stock market has a really rough year for any reason, you could end up losing money . . . that won' happen in the money market account.
     

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