Currently, I have three on-line savings accounts. The first one I opened was Emigrant Direct (currently paying 4.75%). This is where I keep my emergency fund and savings. The second I opened was Capital One (currently paying 4.4%). I keep short term savings in there – saving for Christmas, Car Insurance, Real Estate Taxes and other once a year expenses. The third account I opened was with Citibank Savings (currently paying 4.0%). I only opened it because they were having a promotional where they gave you $100 for opening an account.
I am pleased with all three as far as service. And the interest they pay sure beats what our local banks give (less than 1%). I am thinking that I may close the Citibank – they keep lagging behind as far as interest, and I really don’t need three savings accounts! I want to keep two just in case I ever need money quickly from savings and one of the sites is down.
I have toyed with the idea of an on-line checking account that pays interest – anyone have any experience with them? Do any of them have links to local ATM’s or anything?
{ 3 comments… read them below or add one }
Avoid Bank of Internet. They have bad hours, no ACH capabilities, and unless you live on the west coast, it’ll take over a week to get a mailed check to them posted.
Consider Electric Orange checkless checking account perhaps. Decent APY and convenient interface.
Not too long ago I switched to a Bank of America money market account. The rate was competitive, but of course varies depending on account balance. The kicker for me was convenience – my main checking account is with B of A, so transfers are quick and painless. The downside is I know I can get to the money faster, so the temptation is there.
Fidelity mySmart Cash…among other things:
– free checks
– atm refunds on most atms
– billpay
– high yield and easy investing