Recent Divine Discussions

Tuesday, September 25, 2007

The savings account game

Well it seems like ING lost their dang on minds and lowered their interest rate on the Ultimate Savings. Unfortunately, that is where I have my emergency fund. I have gotten pretty used to the nice interest I earn every month. I am a little discouraged by the rate drop that I am tempted to move my money to another account. So I did some hustlette work and found the current interest rates for the money market/savings accounts for competing banks.


APY (%)

ING Direct




Capital One


HSBC Direct




I will move my E-fund to an already established account. I am not looking to open a whole new account for this since I already have three. I currently have an online savings account with ING, Citibank, and Capital One. I added the others for your information. Aside from a higher interest rate, I am also taking in consideration transfer time, ATM accessibility, and easiness of the online banking. Between Capital One and Citibank, Capital One wins hands down. It currently has a 5% APY (4.88% interest rate), you get free checks, and an ATM card. Their online banking system is easy to navigate through and very nifty. Their transfers, to and from the account, only take 2 days to process. Citibank takes 3-5 days, actually leaning more to 5 days.

There was some discussion over at @ Mya Moola's on what was the best place to keep your emergency fund. I say it depends on your situation. I am content with what the online savings accounts offer. Currently, none of the brick and mortar banks in my area offer an APY that can even compete with online savings banks. I also find the customer service for the online banks to be much more friendly. The online banking system is far better than what I have seen at WAMU, Suntrust, BofA, etc. Easy navigation and the multitude of options make logging on and fidgeting with your account fun. I also enjoy the fact that my money far away enough for me to be not to be tempted but close enough for when an emergency does occur. For these reasons, I will keep all my savings in online savings accounts (as long as they keep up with the perps).


SavingDiva said...

I keep the majority of my funds in CitiBank just because it's where I have my direct deposit set up. However, I might have to look into Capital One.

Mya Moola said...

Smart idea to not open a new account just yet. Lots of folks have been up in arms about ING's rate cut, but I have a sneaking suspicion the other banks are just biding their time.

I haven't checked out any of the others but I keep hearing that ING has the best web interface, which is a big thing with me. But even ING's web interface doesn't come close to BoFA's to me.

Capital One has a pretty nice credit card site, so I'm sure their savings account online management is just as nice. Though Capital One is currently on my shit list!

Dimples said...

@ Saving Diva

Check them out.

@ Mya

LOL @ the shit list

I Am Fabulous!!! Deal With It... said...

Dimples, I noticed the rate changed yesterday and called ING to see what the deal was. I was informed due to the FED interest rate cut, that ING's interest rates were affected and there is nothing they can do about it. I was also told this will affect all interest bearing accounts.

Call them and see if you get the same response and let us know what happens.

You know when I noticed that change in the interest rate, I was like WTH is up with that. I may just open a new account with another of the HYSA you listed in this post. Ugh, the drama LOL!!!

Velvet Jones said...

I got on vacation and this is what happens! I have a savings account with ING however most of the money is gone due to the vacation. So I'm in a good position to set up shop somewhere else. I'm heartsick that ING would drop their rate so quickly. I wonder if their mortgate/HELOC interest rates dropped as fast. :::gas face:::

I don't like the idea of having my money spread out all over the place, however I'll have to give some serious thought as to what to do with my savings. I agree that I believe other online banks will be following suit (HSBC dropped their rate by .55%...dang!).

Dimples said...

@ I am Fab

I did call them cuz when I saw the drop I thought it was just my account. I was like..."Hold up! WTH I did to yall that yall gotta drop my rate??!!" LMAO. And they told me the same thing they told you. ING already had one of the lowest rate to begin with. So this was like icing on the cake. I called Capital One and they said they had no intention of dropping their rate anytime soon. So I am happy with my money being with them for now.

@ Velvet

Welcome back chica!! Missed ya crazy tail. I been on ya blog erday like a crack fiend, wondering when you was gonna come back. LMAO HSBC dropped their rate? From the 5.05%? Or to the 5.05%?

I never really looked at the big picture when I first opened my high yield savings account. I mainly did it for the bonuses and high interest rates. But I have some other criteria I need that ING wasn't fulfilling. Capital One did so I am happy with my decision. Rate drop just pushed me to taking action.

Velvet Jones said...

LOL @ the crack fiend comment. I feel loved. :-D

HSBC is on some foolywang ish and dropped from 5.05% to 4.50%. They didn't drop as fast as ING, but they cut far deeper. I'm a little concerned that this will be a domino effect and everyone will drop rates. I just wonder how long that will last.

Chitown said...

Hi Dimples!!!

Thank you for coming over to my blog. I really appreciate it. Besides, it gives me an opportunity to check out yours as well.

In reading other blogs, some people also mentioned Countrywide's Savings Link which is paying 5.5% on balances of $10k or more. $10k is a lot of money and that about sums up my whole emergency fund so if I have to use it at all, the rate will drop. So, I will stay at WaMu for now but you're right, convenience and easy access to the money is dangerous.

I am going to add you to my blogroll. Best of luck to you on your financial journey!!!

Anonymous said...

Watch out for capitalone. I signed up for their savings account for my emergency fund, only to have my account access restricted. The reason for the restriction was that I had moved residences a several months prior to setting up the accounts. Apparently this looked like fraud to CapitalOne. I suppose this would not be a problem, except CapitalOne never sent me checks or an ATM card for the savings accounts. The net result: I can’t access my emergency fund. CapitalOne will be mailing me checks, but those checks will not arrive for several weeks, I will not be earning interest on these funds during this period, and it took me more than four hours to try to figure out what was going on (I had to wait on hold). I would warn anyone to seriously reconsider putting aside money in a CapitalOne savings account for an emergency fund, as they might find that when an emergency arises they cannot acces their own money!

Dimples said...

@ Anon

Sorry that you had so much trouble with Cap 1. I didn't run into any of that. I received my ATM card and checks within 5 days of opening my account. I am pretty happy with them and they STILL haven't lowered their rates although everyone and their mamas have.