hey all im considering putting my money into an online checking account... mainly because the interest is much higher...

right now i have a normal bank account but i want to switch because i earn no interest... customer service is fine... i have been a member for 5+ years so it looks good on my credit...

the accounts i am considering are as follows:

ing direct- pays 0.15% interest, good customer service, would allow a direct link to my small investment account through sharebuilder.com

capital one- pays 0.90% interest first year and goes to 0.71% interest after, but subject to change according to website, horrible customer service through their cc's, would allow a direct link to my cc, right now i dont have one... i have to make a transfer to another checking account to pay them... they cant figure out the problem, i assume its a computer issue as i had an account before and had them close it then opened one again with the same user name and pass word so im sure there is a glitch in the system somewhere...

i would choose a credit union but i already belong to two of them... one for my car loan (and they screwed me- letting me get a loan for $2000 more than the car was worth at the time) the other i have solely for mystery shop purposes... and they have treated me well... but are too small and dont offer interest on the accounts that I have... i would have to set up a savings account on top of the two i have (one to set up the account with $5 and the other linked to my mortgage down payment saving account- this has a ton of restrictions on it however)

it looks like the top two are my best options, however capital one just bought Ing direct so i am a bit concerned there... ally is out of the options as according to the reviews i dont have a good enough credit to apply and dont trust anyone associated with TARP (formerly GMAC)

im leaning towards ING direct as i trust the people more and hopefully they will just be an added wing to capital one and not absorbed into their cesspool...

but i would love some suggestions after reading this "book" you have earned the right to reply... lol

I refuse to do business with any of the major banks, because they are criminal enterprises which operate under color of law. Credit unions keep money in one's community, so they're my first choice. As far as online banks go, Everbank is a pioneer. Their rates are some of the best. They're FDIC insured. They have never taken a taxpayer-funded bailout. And their customer service is excellent.

[www.everbank.com]

I partially agree with the statement about major banks, but I'm also a pragmatist. They won't be going away, so I will use them to my advantage.

I've always been an advocate of establishing relationships with several financial institutions on different levels: local banks, major national banks, credit unions and online institutions.

Having accounts and building history with national banks can help from a standpoint of establishing and effectively utilizing credit. No matter where they originate, a good deal of mortgages and business loans are eventually sold to a major bank. Plus, a solid history plus the major bank's volume of transactions can sometimes lead to a better rate.

Local banks and credit unions are useful tools, as their policies tend to be less rigid than national banks. If you're in a somewhat unique situation, often times it helps being able to sit face-to-face with the decision making loan officer, rather than a voice on the end of an 800 number.

For a normal savings account, the only place my money has been the last few years is in online accounts. The simple fact of the matter is less overhead (people, buildings, etc.) = better rates. My brick-and-mortar banks are all offering under 0.1%APY on savings; online rates right now can easily be found at 0.9%. No brainer.

I have an ING checking account. I wouldn't worry too much about the Capital One buyout in the short term. It wasn't just a simple purchase of a business unit by Capital One. As a part of the deal, ING acquired 9.9% of Capital One's stock, as well as one seat on the board of directors. I wouldn't look for too much to change that quickly.

The question I have is, how much are you keeping in a checking account to where interest rates would even be a concern? I treat my checking accounts as simply means to making payments. I generally don't keep any substantial balance in any of them.

the main thing is however small it is i would like interest... i make about $1600 a month full time job, msing, and subbing (which i havent done in a while)

also i wouldnt mind the ease of having all of my accounts under one roof.. i have signed up for pageonce and manilla... which are both sites that provide one page access to all accounts... both i have been able to put everything in but my checking account which is frustrating...

cooldude581 Wrote:
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> the main thing is however small it is i would like
> interest... i make about $1600 a month full time
> job, msing, and subbing (which i havent done in a
> while)
>
> also i wouldnt mind the ease of having all of my
> accounts under one roof.. i have signed up for
> pageonce and manilla... which are both sites that
> provide one page access to all accounts... both i
> have been able to put everything in but my
> checking account which is frustrating...


What type of balance do you usually keep though? You may be worrying too much about pennies on the year. Most online accounts that will pay interest on a checking balance below $50K are only 0.15-0.2%. Let's say for the sake of argument that you keep a $10,000 balance. Even at that level, you're talking about $1.60 per month.

Now, I'm the biggest proponent of saying "If my money is parked somewhere, it should still be earning something". But, even I wouldn't obsess over something of that level. I would have my transactional accounts wherever it is most convenient.

seems my balance per statement averages around $250 for my main checking account...

and its about the ease issue as well... if i have a go to place for one set of accounts it makes things much simpler...

$250 @ 0.2% APY = 4 cents per month in interest. I'd go wherever is convenient.

On a slightly different subject, I get up to 25 deposits a month. I am constantly checking my account. It occurred to me that it would be nice to get a text that a deposit has come in so I wouldn't have to check online or visit the bank unless there really was money available. I usually withdraw all but a few cents unless a mystery shop requires a withdrawal from a debit card. I went to a branch I don't usually go to and asked the very young man standing there if I could get such a service. His first question was, "What kind of phone do you have?" I said I don't think that makes a difference if I text. It shouldn't be an app. The conversation went downhill from there. I need to go to my regular branch and see what they say.

yeah i went into my regular bank and saw a sign for an iphone app... and i asked if they would ever get one for android... they looked at each other and then were like what?... i said you have an app for iphone what about one for android? "whats android?" i said its an operating software for phones... " im sorry i dont know what you are talking about..." i thanked them and left... not about to go into techie details...

Sandra Sue Wrote:
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> On a slightly different subject, I get up to 25
> deposits a month. I am constantly checking my
> account. It occurred to me that it would be nice
> to get a text that a deposit has come in so I
> wouldn't have to check online or visit the bank
> unless there really was money available. I
> usually withdraw all but a few cents unless a
> mystery shop requires a withdrawal from a debit
> card. I went to a branch I don't usually go to
> and asked the very young man standing there if I
> could get such a service. His first question was,
> "What kind of phone do you have?" I said I don't
> think that makes a difference if I text. It
> shouldn't be an app. The conversation went
> downhill from there. I need to go to my regular
> branch and see what they say.


Closest thing I've ever seen are the daily summaries sent by email by some banks.

Good points, David. I don't use credit, but I can see how establishing a banking history could be beneficial to those that do. And yes, money is cheap these days. Woe be unto the savers.

i had one that was next to useless... all it told me was the balance... no purchases or what went through or didnt... oh well..

cooldude581 Wrote:
-------------------------------------------------------
> yeah i went into my regular bank and saw a sign
> for an iphone app... and i asked if they would
> ever get one for android... they looked at each
> other and then were like what?... i said you have
> an app for iphone what about one for android?
> "whats android?" i said its an operating software
> for phones... " im sorry i dont know what you are
> talking about..." i thanked them and left... not
> about to go into techie details...

I've been doing shops for the past two months on that very topic. For $11 to $15 a pop, I do what you just did :-) My credit union has an app that works for iPhone and android, but I have run into some tellers that really know nothing and have made fools out of themselves on the topic. Oops.