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Thread: online banks?

  1. #1
    Senior Member
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    online banks?

    I have had a savings account at Ally for several years now. They just raised the interest rate to 2%. However, the bulk of my liquid savings is sitting at Bank of America earning a pittance by comparison. I am thinking about moving at least half of that to Ally but it just feels odd to send that amount to a virtual bank. If I do, it would add several hundred dollars more a month earned n interest. At this age, I am done with investing per so so not sending much to Vanguard accounts anymore. What to do?

  2. #2
    Senior Member rosarugosa's Avatar
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    I don't have any qualms about entrusting online banks, although you wouldn't want to exceed the FDIC insured limit with any one bank. We use Barclays Bank.

  3. #3
    Senior Member jp1's Avatar
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    As long as they have fdic insurance it shouldn't matter.

  4. #4
    Senior Member Greg44's Avatar
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    We banked with HSBC bank online for years - it paid higher rates and was easy to transfer back to our checking account. I was a bit cautious at first - but once I transferred $$ back and forth a few times I felt confident.

  5. #5
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    Be wary! There are problems with all of the banks as 2008 shows. I personally like Vanguard because it is conservative and had nothing to do with packaging mortgages and leveraging as did major banks. Stock mutual funds lost value but did not require a bailout from the federal government. The Federal Reserve is going to raise short term interest rates during 2019 so the interest rates of most short term money market funds will increase. Bicyclist

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