Online savings account?

[frugalone]

I understand ING Direct is a thing of the past now. (Unless I'm mistaken).

Before I lost my job four years ago, I had an account with them, online. It was working out OK for me.

So, what's out there now, as far as a decent-paying online savings program? I am sort of lost and out of the loop at this point.

Thanks!

[ApatheticNoMore]

Really, there isn't much. You won't find the rates from a few years ago easily. Isn't ING, now capital one/sharebuilder etc..? Paying around 1/2 percent? And many online savings accounts are paying much lower than that! They are simple aweful. Bankrate.com says there are a few places paying higher like Everbank, but then higher is about 1%. But sometimes people here know better deals than bankrate.com does. So I'm interested if people have better deals as well. You might be able to get just as good a deal in a brick and mortar bank as online nowdays, but you still have to shop around to find it (bankrate etc.), since many brick and mortars are offering 1 tenth of a percent.

[frugalone]

That's really unfortunate and I'm sorry to hear it.

Sounds like another thing I'll need to adapt to. It's almost as if the world as I knew it stopped four years ago and I didn't realize it. I'm thinking of posting elsewhere about "how do I adapt." 'Cause lately I am having a beyotch of a time in this Rude New World.

Anyone else?

[bUU]

I understand ING Direct is a thing of the past now. (Unless I'm mistaken). ING Direct was bought by Capital One and was renamed Capital One 360. Other than that, I've detected no other changes in the bank. I'm still earning 0.85% on my emergency fund.


So, what's out there now, as far as a decent-paying online savings program?Capital One 360 is still a good bet, since not much has changed. Ally Bank (formerly GMAC Bank) is another good bet. They pay a little bit more for some things and a little bit less for other things. The only thing to worry about there is that the holding company has gotten very poor financial strength ratings. It's not much to worry about; your deposits under $250k are insured, and so worst case is that you'll simply lose access to them for a short while if something remarkably bad happens. I've also heard folks mention PenFed and Barclays in the same breath as ING Direct (Capital One 360) and Ally Bank.

[gimmethesimplelife]

That's really unfortunate and I'm sorry to hear it.

Sounds like another thing I'll need to adapt to. It's almost as if the world as I knew it stopped four years ago and I didn't realize it. I'm thinking of posting elsewhere about "how do I adapt." 'Cause lately I am having a beyotch of a time in this Rude New World.

Anyone else?You and me both, frugalone, you and me both. I don't recognize this world in many ways from the world that was say back in 2006 when real estate was going gung ho and propping everything else up. Rob

[bUU]

The worst part of it is that there simply is no way to save money with the principal protected that earns enough returns to overcome the impact of inflation.

[gimmethesimplelife]

The worst part of it is that there simply is no way to save money with the principal protected that earns enough returns to overcome the impact of inflation.Isn't that the truth? You are pretty much forced into more speculative arenas - the stock market, precious metals, etc - if you want to keep pace with health care and other inflation. It often seems like a losing game to me. Rob

[MaryHu]

I sometimes wonder if the lousy interest rates on safe investments aren't purposely designed to make people put their money in less safe investments where they can more easily lose it. Let's face it, not content with the free money they got through massive tax payer bail outs, Wall Street just wants to be able to seize all of our money.

[jennipurrr]

I have an account at Emigrant Direct. I have been happy with it but it is not paying great at all 1/2% My mom uses a high yield checking account as her savings account and I want to look more into that but haven't had time. Might be something to consider.

[bUU]

I sometimes wonder if the lousy interest rates on safe investments aren't purposely designed to make people put their money in less safe investments where they can more easily lose it. Let's face it, not content with the free money they got through massive tax payer bail outs, Wall Street just wants to be able to seize all of our money.It's nothing quite so conspiratorial. It all relative. Remember, the way a bank works is that you leave your money with them, and they lend the money to other people, charging those other people interest. Then interest rates that you get must necessarily be less than the interest rates that the borrowers pay. Right now, and for a long time, interest rates on mortgages, especially, have been super-low.

[ApatheticNoMore]

It's all deliberate decision making by the Fed. Toward what end, is where you can come up with theories, that are hard to prove or disprove. Such policies are bound to have winners and losers. Cui bono? The problem is with the complexity of economic systems there are always multiple winners and losers which poses problems if you want to say x was only done to benefit y and you don't have proof. But you can still look at what overall systematic effects are.

This is who I believe are some of the winners of low interest rates: banks who have their bad assets propped up, the stock market which has money driven into it (and the whole FIRE industry that depends on it), the government which can borrow at low interest rates, all debtors with existing debt whose interest rates are lower (note, I don't say all debtors, credit card rates are most noticably not lower, if you want to buy a new house your rate will be low but this has driven up prices so there may not be a net benefit). Then if you want to get into further complexity you look at the effects of interest rates on international trade etc.

[Zoe Girl]

I actually have some very small IRA accounts with Ally bank in laddered CD's. I have been happy with their service and their rates are much better than the local bank or credit union. I checked their bank rating and I believe it was a 4. i try to check that every year so if a bank looks like it is at risk I can move my money as needed.