On-Line Savings Accounts--4 percent?

Discussion in 'Homesteading Questions' started by amelia, Oct 20, 2005.

  1. amelia

    amelia Well-Known Member

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    Someone recently mentioned in another thread that some on-line banks are offering FDIC-insured savings accounts with interest rates as high as 4 percent. I'm skeptical in view of the fact that neither CDs nor short-term treasuries are offering those yields, and I wonder if there's a catch. (I hope this isn't too off-topic for this homesteading board, but I feel that there may be other similarly-minded people here who have a need to retain their principal at all costs while maximizing (safely) the amount of interest income available to live on.) Thanks for your thoughts on this.
     
  2. ltbloom

    ltbloom Well-Known Member

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    Beal Bank in Houston TX offers 1 yr CD's with an annual yield of 4.30%, FDIC insured. I've dealt with them for many years with no problems, I think you can bank by mail, too.
    Here's the link:
    http://www.bealbank.com/Content.aspx?ID=4
     

  3. dlangland

    dlangland dlangland

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    www.netbank.com
    I don't actually know their rates without looking it up because they change quit often. I have had a money market account and CD's with them for at least 8-10 years. Their rates are usually right at top of what anyone is offering at the time, and easy to do business with. They also offer 2 types of interest checking with an optional debit card. They provide you with free post-paid envelopes for mail banking. Deb
     
  4. hisenthlay

    hisenthlay a.k.a. hyzenthlay

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    My savings account is at INGdirect.com, which is awesome. It is currently 3.4% interest with no fees and no minimum balance requirement. I keep almost all my cash there, and just transfer the necessary amount to my local checking account when it's time to pay bills, etc.

    I've had the account for a year and am really happy with it. Everything is done by web or phone, and the phone people have really long hours and are always really helpful and friendly. And, the interest rate keeps going up every couple of months! I think I started at 2.3% interest or something like that last summer.

    I recommend it to everyone!
     
  5. caballoviejo

    caballoviejo Well-Known Member

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    Emigrant.com offers 4% for ONLINE banking.

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    Contact Us | FAQs | Privacy and Security | Terms and Conditions | Account Disclosures | Affiliate Program
    ©2005 EmigrantDirect, a division of Emigrant Savings Bank, Member FDIC
     
  6. hisenthlay

    hisenthlay a.k.a. hyzenthlay

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    caballo,

    have you banked with Emigrant? Was it a good experience? How long have they had this 4% rate, do you know? It sounds like a good deal....
     
  7. cfabe

    cfabe Well-Known Member

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    I have just started with ING direct, so far I am happy. Chose them over emigrant because they are a bigger bank and I got a referral for $25 from a friend.
     
  8. minny67

    minny67 Member

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    I've been with Emigrant for a few months-so far I'm very happy!
    It can take awhile to get your account totally setup, they snail mail you a letter with your account # and password, I got my letter in around a week, but have read about others who have been waiting for three weeks.
    They raised thier rate to 4% last month, and the rate is guarenteed thru the end of the year. (the rate has gone up twice since I set up my account!)
    Transfers into my account are complete in 2-4 days (usually 2). I haven't transfered any out yet.
    They are FDIC insured (have been since 1934!).
    I also have an ING account (has less than $50 in it), I signed up for the $50 bonus-but their interest rate is too low compared to other online accounts.
    Fatwallet.com has a financial forum where the most popular online accounts have been discussed in detail-just do a search for the bank you're interested in.
    Hope this helps!
     
  9. DAVID In Wisconsin

    DAVID In Wisconsin Well-Known Member

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    I have also used ING Direct for several years now. I love them and have had no problems. Their rates sure beat me local bank's. In fact, my ING regular savings rates beat the rates I could get locally with a 4 year CD! ING raises their rates regularly. Easy to get money in and out.
     
  10. papaw

    papaw Well-Known Member

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    Good information on this thread ... thanks for posting it.
     
  11. amelia

    amelia Well-Known Member

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    Thanks, everyone, for all your input. Maybe it's true that in the absence of brick and mortar a bank saves enough to offer rates that beat even CDs.

    This may be a dumb question, but how do you go about assuring that a particular on-line institution is legit and that you're not in fact sending your hard-earned money to some scamster's P.O. Box? Is there a way of ascertaining whether it is financially solid and that it is FDIC insured, as represented?
     
  12. suzyhomemaker09

    suzyhomemaker09 Well-Known Member

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    We had an account with netbank waay back when internet banking was just getting started..they were great.
     
  13. Bruce in NE

    Bruce in NE Well-Known Member

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    "This may be a dumb question, but how do you go about assuring that a particular on-line institution is legit and that you're not in fact sending your hard-earned money to some scamster's P.O. Box? Is there a way of ascertaining whether it is financially solid and that it is FDIC insured, as represented?"

    You can go to bankrate.com and search their bank ratings page for most any bank:


    http://www.bankrate.com/brm/safesound/ss_home.asp
     
  14. papaw

    papaw Well-Known Member

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    Why are you not with them now?
     
  15. sgl42

    sgl42 Well-Known Member

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    NetBank has been shut down, and is being taken over by ING.

    BankRate shows Netbank is (was?) a "5", their lowest rating. ING is a "3".

    There's also a thread in General chat about this:
    http://homesteadingtoday.com/showthread.php?t=209240

    --sgl
     
  16. Betho

    Betho Well-Known Member

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    I work at a credit union and our rate right now for a 12 month CD, min deposit $500, is 5.21 dividend, APY is 5.31. We also have a program which pays 7.25% 7.5 APY on the first $500 in both savings and checking accounts. Check around... our 3 month CD rates are higher than 4%. 4% across the board is pretty darn good for a savings account.
     
  17. bobincolombia

    bobincolombia Active Member

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    I bank totally online at www.etrade.com, their savings account is paying 5.05% APY. I've never had a problem.
     
  18. Beeman

    Beeman Well-Known Member

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    Local banks were offering 5.25% a couple of weeks ago, i think it's dropped to 4.8% and that's on 9mo.
    I play the percentages with a certain percentage in cash,stock,bonds etc. Of course it all depends on each individuals age and acceptance of risk. it would take a lot of money, which of course would exceed FDIC insurance protection level, to get enough interest income to live off of.
     
  19. Mel-

    Mel- Well-Known Member

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    paypal offers 5.4% in their mutual fund. its pretty simple. you have a paypal account and just have to sign up for the mutual fund then it is figured on the ending month balance. so you can use your paypal account as usual.

    its not a bank so is not fdic insured though I don't think any mutual fund is?
     
  20. agmantoo

    agmantoo agmantoo Supporter

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