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Thread: Online Savings Accounts

  1. #1

    Online Savings Accounts

    Just wondering if anyone here uses online savings accounts. I know the rates have been lowered since the FED has lowered rates, and I have done my banking with Emigrant Direct, but have noticed that they have now fallen to the low rung on the ladder at 2.75%. I am looking at Capital One's 3.70% on $10,000+ balances, but I am also wondering if this is just a promotional gimmick that will go away after a few months. However, I am SOOOOOOO disappointed with ED's rate, I think I may go for it. ED has just lowered their rates so much faster and further than the others I can't take it anymore lol.

    Anyone else have any thoughts to add? Please don't say buy gold, I've got all I'm going to buy now lol.
    Last edited by SevenEyedJeff; 05-12-2008 at 12:14 AM.



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  3. #2
    I think the online savings accounts are pretty good places for short-term savings. They would be excellent for your 6-12 months living exspenses money. The rates are low right now, but they are comparable to investment grade bonds and they are FDIC insured.

    I'm using HSBC. They generally have one of the higher rates available on the market at any given time and they have a nice web site. E-Trade probably has the best rates right now.

  4. #3
    ING Direct is offering 3% for their online savings, and WAMU is offering ~3.3% if you open up a savings account ONLINE.
    Lack of planning on your part does not constitute an emergency on my part.

  5. #4
    get 8%+ in the South African rand for 3 month CD , through Everbank

  6. #5
    Quote Originally Posted by SevenEyedJeff View Post
    Just wondering if anyone here uses online savings accounts. I know the rates have been lowered since the FED has lowered rates, and I have done my banking with Emigrant Direct, but have noticed that they have now fallen to the low rung on the ladder at 2.75%. I am looking at Capital One's 3.70% on $10,000+ balances, but I am also wondering if this is just a promotional gimmick that will go away after a few months. However, I am SOOOOOOO disappointed with ED's rate, I think I may go for it. ED has just lowered their rates so much faster and further than the others I can't take it anymore lol.

    Anyone else have any thoughts to add? Please don't say buy gold, I've got all I'm going to buy now lol.
    I use GoldMoney to store my capital. Their national currency balances pay a good yield (2.28%) based on the risk structure and Holdings are free to set up. I use Washington Mutual for the free international wire transfers.

    I do not keep any material bank balances in WaMu because they are only a 2 star bank. WaMu's risk structure, like all American banks, is very perilous. The currency balances in GoldMoney are with 5 star banks and GoldMoney is based in Jersey, Channel Islands which has strong bank privacy laws so you need not worry about any annoying 1099s to the IRS (of course, you should claim and pay tax on all interest income received); and there are no real 5 star banks in the US. Wells Fargo is about the most solid as a good 4 star.

    I would be careful chasing yield as you may get burned like a lot of people lately who did not appropriately assess risk.

    Keep in mind the ENTIRE US banking system is a walking zombie and the FDIC is gearing up for massive large-scale bank runs:




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