Other Talk "Otterville" plus Religion/Politics

Interest Free Savings Account!!

Old 02-18-08, 05:35 PM
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Interest Free Savings Account!!

i just got notice from my CU teller that they will no longer be paying interest on the standard savings account.

I don't understand why one would even have a savings account. I know they want to entice more people to have a $5000 balance in a money market account, but I can't afford that.

What is the point of having a savings with -out interest. One might as well keep in in the checking account. I personally would close everything, but I have loans and direct deposit there.

I wonder what other kinds of "services" they will start providing.

I was hoping for something better from a CU called CAPCOM!
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Old 02-18-08, 05:45 PM
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Originally Posted by jonw9
i just got notice from my CU teller that they will no longer be paying interest on the standard savings account.

I don't understand why one would even have a savings account. I know they want to entice more people to have a $5000 balance in a money market account, but I can't afford that.

What is the point of having a savings with -out interest. One might as well keep in in the checking account. I personally would close everything, but I have loans and direct deposit there.

I wonder what other kinds of "services" they will start providing.

I was hoping for something better from a CU called CAPCOM!
open up an ING account... the rate has taken a hit, just like everywhere else,but you'll get about 3.5%.
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Old 02-18-08, 05:49 PM
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I would check around at other banks or on-line banks. Just beacause you have loans and direct deposit there they dont own you. Its not that hard to switch, your new bank will do most of the work.

_____________
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Old 02-18-08, 06:18 PM
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Originally Posted by jonw9
What is the point of having a savings with -out interest. One might as well keep in in the checking account. I personally would close everything, but I have loans and direct deposit there.
My checking account already pays interest, so you're getting a real deep dicking.
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Old 02-18-08, 06:55 PM
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Originally Posted by TallGuyMe
open up an ING account... the rate has taken a hit, just like everywhere else,but you'll get about 3.5%.
I dunno if this is the best solution, but that's what I did. I want my money to get some interest but I also need it to be liquid.
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Old 02-18-08, 07:01 PM
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EmigrantDirect is 3.60%APR

My Washington Mutual savings account is currently 4.00%APR

I had both ING and Emigrant but since, at the time, WaMu was offering 5.00%. I opened it since WaMu is local.

Never had a problem with online banking, though. You may want to try a referral, if ING still does them.
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Old 02-18-08, 07:04 PM
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Originally Posted by namja
I dunno if this is the best solution, but that's what I did. I want my money to get some interest but I also need it to be liquid.
It's liquid. Just set it up to transfer with your current checking account.
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Old 02-18-08, 07:11 PM
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I have another account with an interest checking at a local bank, but I think it is stupid.

I am just keeping the account open for now. I am job hunting and will probably end up relocating, so I will just close everything down when I move, assuming I can sell my house, but that is a different thread.
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Old 02-18-08, 08:07 PM
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Originally Posted by TallGuyMe
open up an ING account... the rate has taken a hit, just like everywhere else,but you'll get about 3.5%.

do you have any idea how ING invests that money since it's not FDIC insured?
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Old 02-18-08, 08:24 PM
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Originally Posted by al_bundy
do you have any idea how ING invests that money since it's not FDIC insured?
They invest just like any other bank since it's FDIC insured.

ING link

With an Orange Savings Account, you earn a variable 3.40% Annual Percentage Yield (effective 02/01/08) with a level of flexibility, freedom, and security you simply won't find at other banks. And because your account is FDIC insured, your account is secure.
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Old 02-19-08, 04:55 AM
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Originally Posted by al_bundy
do you have any idea how ING invests that money since it's not FDIC insured?
What gave you the impression they aren't insured?
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Old 02-19-08, 05:32 AM
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Originally Posted by Duran
What gave you the impression they aren't insured?
he's obviously never even visited the website, as its clearly listed right on the front page!

http://home.ingdirect.com/
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Old 02-19-08, 06:21 AM
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ING is most definitely FDIC insured.

I recently opened a checking account at a local bank that pays 5.01%, with a few stipulations. (must receive e-statements, minimum 10 debiit transactions per month - neiher of which is a problem for me)

First time I've banked locally in years - was with Netbank from ~2000 until they went under last fall, and rolled into ING.
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Old 02-19-08, 06:24 PM
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they used to hype some account that they never really explained what it was that wasn't insured but paid higher rates
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Old 02-19-08, 07:18 PM
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Originally Posted by al_bundy
they used to hype some account that they never really explained what it was that wasn't insured but paid higher rates
Could you provide some links to this? Or do you work at a Suntrust, Wachovia, etc? I cashed in a CD from a local bank and the guy was really upset and said that only some of those on-line banks have higher rates and I said that is where it is going.

It looks like the fed/gov will keep cutting intrest rates.....

++++++++++++++

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Old 02-20-08, 01:05 AM
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My bank pays 0.1% interest on their savings, and there's a $300 minimum to avoid monthly fees (US Bank). I closed it out years ago.

To answer the question, there is no point in having an interest free savings account, or a 0.1% paying savings account for that matter. Either use an on-line savings account, or keep the money in mutual funds (which of course can go down but in the long-term will outperform online savings accounts, assuming you didnt' pick a crappy mutual fund).
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Old 02-20-08, 07:37 AM
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Originally Posted by ernestrp
Could you provide some links to this? Or do you work at a Suntrust, Wachovia, etc? I cashed in a CD from a local bank and the guy was really upset and said that only some of those on-line banks have higher rates and I said that is where it is going.

It looks like the fed/gov will keep cutting intrest rates.....

++++++++++++++


it's not on the website anymore, but my wife used to have an ING account and they used to have TV ads in NYC every 5 minutes on every show about how they are a fresh thinking financial services company. i checked them out, but they never said where the money went. too bad they reported a huge subprime writedown yesterday.

most of these mystery money market type funds with higher returns put the money in hedge fund or similar type commercial paper

the reason the online banks have higher CD fees is probably that they need to increase their reserves. since they are regulated they have to have a certain ratio of cash reserves to liabilities. and if they are writing down assets due to subprime losses they have to increase reserves and the higher rates mean they are willing to pay for it

Last edited by al_bundy; 02-20-08 at 07:39 AM.
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Old 02-20-08, 08:24 AM
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Originally Posted by al_bundy
do you have any idea how ING invests that money since it's not FDIC insured?

Whooooooaaaaaaa, BUNDY!

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Old 02-20-08, 02:34 PM
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Originally Posted by jonw9
I personally would close everything, but I have loans and direct deposit there.
There's your answer. They do it because they can and most people are too lazy or too stupid to change.
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Old 02-20-08, 03:25 PM
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So is ING the way to go? I just looked at what our savings account rate is.. A whopping .004%.. So lame..

I'm guessing that online only ones like ING are totally safe and all?
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Old 02-20-08, 03:34 PM
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Originally Posted by tbird2340
So is ING the way to go? I just looked at what our savings account rate is.. A whopping .004%.. So lame..

I'm guessing that online only ones like ING are totally safe and all?
yes
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Old 02-20-08, 07:05 PM
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Originally Posted by kilcher
There's your answer. They do it because they can and most people are too lazy or too stupid to change.

Makes sense. I meant to say, I am not closing right now because I will probably need to close my local accounts, assuming i move this year. Savings as a grad student is too much anyhow. Plus I am hoping they start offering no-interest CDs soon!!

I assume that the CU still makes interest on the money? Or is their income rely solely on loan interest?
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Old 02-21-08, 09:14 PM
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maybe this will help:

All of these should be updated due to the new fed rate cut. Please verify the new rates and add a "as of xx/xx/xx" date qualifier.

GCF Bank Cybersaver 4.47% for at least 90 days rate will not drop below 4.47% (As of 2-7-08) http://www.gcfbank.com/cybersaver.asp

AmTrust Direct offers 4.10% APY (as of 2/10/08), “no monthly service fee or minimum balance fees”, can link to other bank accounts. $1 minimum. This is a savings account. http://www.amtrustdirect.com/esav...fault.aspx

Capital One offers 3.50% APY (as of 1/25/08), no fees, free checks and ATM card, an automatic savings plan, can link to other bank accounts. $1 minimum to open. This is a money market account. http://www.capitalone.com/directbanking/hymm/index.php
Costco members get 3.70% APY (as of 2/7/08), http://www.capitalone.com/directbank...stco/index.php

Citibank Direct offers 4.00% APY (as of 1/31/08), no fees, $50 sign-up bonus currently not shown. No minimum. http://direct.citibank.com/

Countrywide Bank offers a variable rate, from Account < 10K = 3%. Above 10K = 4.5% APY (as of 2/7/08), can link to other bank accounts. $1,000 minimum to open. https://bank.countrywide.com/CWBRates.aspx?tab=sl

E-Loan offers 3.75% APY (as of 2/7/08), no fees, “industry’s strictest privacy policy”. $5,000 minimum. http://www.eloan.com/s/show/landi...vingsCDs01

Emigrant Direct offers 3.60% APY (as of 2/7/08), no fees, can link to other bank accounts, web interface. No minimum. https://www.emigrantdirect.com/Em...DirectWeb/

E*Trade offers 4.10% APY, (as of 2/15/08), no fees, an automatic savings plan, can link to other bank accounts. $1 minimum to open. https://us.etrade.com/e/t/home/compl...kinnertab=bank

FNBO Direct - 3.85% as of 02/07/2008

GMAC Bank is currently 3.50% APY (as of 2/8/08) with >$500 deposit

HSBC Direct offers 3.55% APY (as of 2/4/08), no fees, can link to other bank accounts, web interface. $1 minimum to open. http://www.hsbcdirect.com/1/2/1/d...n-more/osa

iGObanking has 4.2% APY as of 1/31/08

IndyMacBank http://www.indymacbank.com/Individua...n=pd4MonCDRate 3.25% APY 4-month CD. 5K Min, Internet-Only! 1/25/08

ING Direct offers 3.40% APY,, no fees, an automatic savings plan, web interface. No minimum. http://www.ingdirect.com/osa_google/ (as of 02/04/08)

OneUnited Bank offers 5.15% APY (as of 2/7/08). $1,000 minimum.

Paypal's Money Market 3.99%.NOT FDIC (as of 2/07/08)

Presidential Online Bank offers 3.50% APY, (as of 01/31/2008), no fees, ATM access, web interface. $5,000 minimum to open. http://www.presidentialbank.com/PremierSavingsOffer.htm

salemfivedirect.com 3.50-4.00% APY (as of 2/10/08), $25 direct deposit bonus

Schwab - 3.21% (as of 1/29/07), free checks, free bill pay, unlimited refunds at ATMs on the Visa and Plus networks

UFB Direct offers 4.0% APY (as of 2/10/08) with no fees and $1 minimum. HOWEVER, they have not yet entered the 21st century -- you cannot link external accounts online. The simple workaround is to use your other accounts to link to UFB (use routing # 274070484). http://www.ufbdirect.com/

wamu.com 4.00% (as of 2/15/08) online savings with free checking account

WT Direct offers 4.15% APY (as of 2/7/08), no fees, can link to other bank accounts. No minimum to open, but your interest rate drops if you don’t have a $10,000 balance after 60 days. http://wtdirect.com/wtdirect/


http://forums.slickdeals.net/showthr...highlight=hsbc
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