Does anyone here have an Internet Banking Account?

[panader0]

I have a small savings account at Chase (I know, I know, but they're at my food store). The interest rate is, wait for it, 0.01%!
I went to www.ratecatcher.com and saw that with an internet account, such as Ally, I can make 0.87%, with no minimum
deposit or balance. I was wondering if anyone has any experience with these accounts.

[FSogol]

1. and if so, what's a good password?

TIA!

[NRaleighLiberal]

2. Was on ING for years, it is now Capital One - about as good as rates get (near Ally).

Better than the local banks!

[Nye Bevan]

3. Yes, they are great for getting a higher interest rate on savings, and fully FDIC insured.

With banks like Chase you are paying for the bricks and mortar locations which is why the interest rate is so low. There are many internet banks that will pay a much higher rate and also give you a checkbook, online billpay, etc.

I also use Capital One 360 (formerly ING Electric Orange).

[politicat]

4. We've had two; one failed, the other it was too much of a pain to use.

However, we were using them for everything - checking, debit, savings, credit card, car loan at one point.

I really liked the first one -- great customer service, a reasonable interest rate all around -- but when the failures started happening, the spiral caught them. Our account was transferred to the orange one (IG something?) and it was just more... Complicated. We didn't have access to an ATM any more so everything had to go by mail; they didn't send paper checks at all (though they had excellent mobile ETF options) and we had found a local/regional bank that did everything we wanted.

Quick question: is your savings for something short-term, like saving up for a purchase? Or long-term, like rainy day fund/personal safety net? Or permanent - retirement fund? Savings accounts are fine for under one year, but no savings account is going to be rewarding financially in the long term. The inflation rate and the interest rate are either the same or the interest rate is below inflation, so effectively, you're paying the bank to store your money. (And that had been true for decades -- the savings account my grandmother had in the 60s had a 2% interest rate with a contemporary 2% inflation rate.) Long-term, you might want to look at CDs. The interest rate is around 1%, not great, and they're locked so you have to wait (which is the point of long-term savings) but you can cash out in an emergency. Permanent, you might want to look at an IRA, since those can't be touched without penalty until 55.5.

[HipChick]

5. I have several...

One is a pain in the arse, as I keep forgetting my ID/password - on a good note though I have not drawn any money out, so have quite bit stocked up

[panader0]

6. Thanks all for the info-

I'm off now to vote in the Az primary.

[jwirr]

7. I have an account with the Social Security program called Direct Deposit. Only problem is that it is

only a debit account. I cannot deposit anything to it. I have some bills that are paid direct.

[whatthehey]

8. depends on amount but yes

We have one account with CIT Bank which pays 1% on anything above $10,000 and conversely there is a local bank here which pays 2.5% on amounts BELOW $15,000. However you have to meet a minimum amount of bill pay and ACH transactions but it's not very onerous.

[rjj621]

9. I have an Ally account

I'm very happy with it