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24 Sep 07 - 09:13 PM (#2156735) Subject: BS: Online Banking Savings Accounts From: Alice I've been looking at the online bank savings accounts that offer high interest rates. 6% is the highest right now. These are the accounts you can have only online, not brick and mortar. Does anyone have experience with these? Is it safe long term to have a savings account like this? https://www.fnbodirect.com/01d/html/en/ |
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24 Sep 07 - 09:17 PM (#2156739) Subject: RE: BS: Online Banking Savings Accounts From: Rapparee Well, I wouldn't do it. I've worked too danged hard for the money. Is the bank FDIC insured? How secure is their website and transaction methods? Will they show you the last audit report? Is the bank located in the US or overseas, and if so, where? If it sounds too good to be true, it probably is.... |
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24 Sep 07 - 09:17 PM (#2156741) Subject: RE: BS: Online Banking Savings Accounts From: Alice The bank is FDIC insured. |
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24 Sep 07 - 09:18 PM (#2156743) Subject: RE: BS: Online Banking Savings Accounts From: Peace "The bank is FDIC insured." Says who? |
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24 Sep 07 - 09:21 PM (#2156746) Subject: RE: BS: Online Banking Savings Accounts From: Rapparee Check here, and also check the Consumer Protection part of the website. |
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24 Sep 07 - 09:26 PM (#2156750) Subject: RE: BS: Online Banking Savings Accounts From: Alice http://www.savingsaccounts.com/fnbodirect-online-banking/ It is First National Bank of Nebraska, based in Omaha, and part of the First National Bank chain. |
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24 Sep 07 - 09:28 PM (#2156751) Subject: RE: BS: Online Banking Savings Accounts From: Alice First National Bank of Omaha, FNBO, member FDIC. |
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24 Sep 07 - 09:28 PM (#2156752) Subject: RE: BS: Online Banking Savings Accounts From: Rapparee There's this.... |
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24 Sep 07 - 09:29 PM (#2156754) Subject: RE: BS: Online Banking Savings Accounts From: Peace Copyright © 2007 FNBO Direct. All Rights Reserved. Online Savings Accounts offered by First National Bank of Omaha, member FDIC. Deposits are insured to the maximum permitted by law. *This Annual Percentage Yield (APY) is offered until September 28, 2007. The interest rate and APY may change after the account is opened, but will not be changed until September 28, 2007. Minimum balance to open an account is $1.00. Fees may reduce earnings. |
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24 Sep 07 - 09:46 PM (#2156769) Subject: RE: BS: Online Banking Savings Accounts From: Rapparee What ARE you on about? |
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24 Sep 07 - 10:10 PM (#2156780) Subject: RE: BS: Online Banking Savings Accounts From: jeffp I think he's pointing out that the interest rate can change as soon as this Friday. Bet it'll go up? |
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25 Sep 07 - 05:44 AM (#2156899) Subject: RE: BS: Online Banking Savings Accounts From: JohnInKansas Most established banks offer full online services. I see little advantage to an "online only" service when essentially the same services and rates can be had - online - from most brickandmortar establishments. There is no particular reason though that an online only service should be much different than a "real bank," if you're fairly certain you won't need to talk to them occasionally. When I moved from WA state to KS, I left my principal accounts all with the credit union in Seattle, and have had no difficulty making all my transactions via web, 800-phone, and/or ATMs here. Of course I also opened local CU accounts to facilitate direct payroll deposits by a local company here, but the "remote" place pays much better interest, and offers a much broader range of other services, and better rates on both deposits and loans, so the local CU accounts are used only for occasional/incidental stuff1 1 Our local county treasurer refuses to accept an "out of state" check for vehicle tags/taxes, as one example. While this refusal is specifically prohibited by Federal Banking Regulations, they get by with it, so I use the local account to placate the Be aware that high yields quoted may be "introductory" offers, and actual yields over a longer term may be little different than can be obtained from other more conventional places, especially if you look at CDs and/or other "savings/investment" instruments offered by most such places. My "remote" Credit Union offers a couple of account types that pay up to 7.5% current yield, although you have to poke around a bit to get the best rates, and there are some limitations on amounts and "turnover" to get the best rates. If you have enough to put into long-term savings, an investment broker (esp - in the US - if you can use a Roth/IRA account) will likely get you much better yields than any "savings account," although of course there's some "market risk" to be factored in and it's a little more work to set something of this kind up. There also may be minimum amounts required to set up something. John |
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25 Sep 07 - 10:17 AM (#2157041) Subject: RE: BS: Online Banking Savings Accounts From: pattyClink More consistently high rates can be had through ING or Emigrants Bank. They offer routinely high rates in the range of 4.5% (which will be dropping soon since the Fed's action). They are both considered very stable firms. Only hangup is you have to link them to your existing checking account, apparently to allow all transactions to be electronic. Seems a little weird but it also allows easy transfers in and out of your local checking. Another option is to open a brokerage account, with an outfit that provides a good money-market fund as your default investment. Whatever is not in stocks and bonds is swept nightly into the money-market without fees. Muriel Siebert is a good example. (others don't do this for little guys, leaving you with the same paltry 0.5% you were getting in your checking -- so be very careful about which one you're getting.) With the brokerage, if you ever want to branch out into other investments, you're all set up to do so. If you want to stay with a local bank, look into short-term CDs that roll over every 3 months. |
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25 Sep 07 - 03:21 PM (#2157264) Subject: RE: BS: Online Banking Savings Accounts From: Alice I already have an IRA and a 401K and my checking account with my local bank pays a very small interest. I already do my local banking online. My local banks don't pay much for saving account rates and I need something that I can instantly transfer money into my checking account, not a CD. Anyone have experience finding the online savings accounts paying a higher rate than the local bank? Seems like ING has had online savings accounts for some time. |
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25 Sep 07 - 08:00 PM (#2157414) Subject: RE: BS: Online Banking Savings Accounts From: JohnInKansas As suggested above, I've found better rates and service at credit unions than at banks, but you have to find the right credit union to get all the goodies. In past years, credit union membership (usually about a $20 minimum in your savings account) was limited to those working for a particular business or in a particular "industry." Recently, however, for many CUs the only requirement is that you live in a particular county or are related to someone who does. In some cases you might get by with just knowing the name of someone who does - it's become much more "flexible" in recent years. Larger organizations obviously can offer more services, and with more turnover on loans and such can offer more generous loan rates and better interest on savings accounts. Even smaller ones probably can beat the rates of commercial banks pretty consistently on auto loans and other secured (small?) loan kinds. (Nobody with any real money sense would consider letting a dealer finance a car, would they?) Some of the larger ones are even into home mortgages (primary) and many can give good deals on second mortgages for "line of credit" purposes. You do have to investigate each one individually, and of course you may find the rare local commercial bank that's quite competitive. Of course, even when you find a good one, you still have to watch them, since changes in management and/or "investment philosophy" can turn a good one into mediocre quite quickly. John |
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25 Sep 07 - 11:24 PM (#2157489) Subject: RE: BS: Online Banking Savings Accounts From: GUEST,guest I haven't seen any CD rates over 5.5% or 6% so I bet this 6% interest rate is a teaser and will go lower almost instantly upon investment if the instrument is like a savings account which you can draw from. How much money are you talking about? This makes a difference. What are the restrictions on the use of the money? This makes a difference. How long do you plan to invest it? Will you need the money for some necessity? This makes a difference. Why not put $2500 or more into something like American Bond Fund=New Perspective? Or the family of funds currently in your 401 K invetsments? Or buy and hold a valuable fiddle. A garage sale could net you 500 dollars for a days work. Will you make that much in interest on your current potential investment? If you don't have a large sum it makes way more sense to use that money to buy and sell property such as real estate, antiques, rare books, or some gold. To me, it makes very little sense to tie up less than a thousand dollars in an insufficiently researched online investment when that money can work for you in so many other more interesting and fun ways, Alice. Even CD's roll over automatically at the end of your investment period at a lower rate which you will then pay a penalty on if you have to retrieve it if you didn't take it out and get your interest at the end of the official period. If you have some extra and you feel bad for not getting some kind of return on it, use it for fun or a funner investment. YOu can't take it with you.... JMHO |
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26 Sep 07 - 07:17 AM (#2157605) Subject: RE: BS: Online Banking Savings Accounts From: Grab FWIW, I *prefer* online. In fact, I wouldn't now bank with anyone who didn't give me online access to my bank account. But as John says, it's safer if you stay with the online version of a bricks-and-mortar organisation, because at least then there's someone you can turn to if it all goes pear-shaped. Higher interest rate is handy. But better is the ability to check your account, pay bills and transfer money without having to go into the branch, something which for most of us used to involve a wasted lunchbreak or sometimes even time off work. And the ability to transfer money at will between accounts means that anyone can now share money between high-interest and current accounts as you're supposed to do for maximising interest. Previously that was pretty much limited to people with lots of free time (ie. either housewives or retired), because no-one else could manage regular visits to two bank branches, and even then you had to be extra careful to avoid going overdrawn. And for my company, I've got a business account with HSBC, who uniquely have figured out that internet accounts cost them nothing on admin and therefore are passing that saving along to their customers by not charging for transactions via the internet. Everywhere else still takes a tithe on business accounts as if the world was still using paper ledgers, which is pure larceny. Graham. |
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26 Sep 07 - 07:29 AM (#2157609) Subject: RE: BS: Online Banking Savings Accounts From: John MacKenzie Well I don't know about on-line banks, but I am sick fed up with spam e-mails and phone calls purporting to come from my bank, asking me to confirm my details, as someone has tried to access my account illegally. I don't have an on-line account, so it's crap, nor do I have an account with Abbey National or any of the other banks I get spam in the name of. I have had 3 phone calls, as has my partner, asking for details supposedly missing from our personal files. Do yourself a favour folks, drop the phone on these guys, and immediately delete any e-mails. I have informed the spam department of the banks concerned but the e-mails keep coming. It's time I junked that e-mail account and set up another. Giok |
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26 Sep 07 - 09:55 AM (#2157697) Subject: RE: BS: Online Banking Savings Accounts From: Alice "Or buy and hold a valuable fiddle" Like I said, I need a savings account to be able to transfer instantly into checking. Pattyclink mentioned ING and Emigrants Bank. That's the kind of informed response I'm looking for. |
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26 Sep 07 - 10:07 AM (#2157700) Subject: RE: BS: Online Banking Savings Accounts From: Amos Using Emigrants has been hassle-free and added convenience to our busy little lives. We investigated them before engaging and they have a clean rep. A |
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26 Sep 07 - 10:43 AM (#2157731) Subject: RE: BS: Online Banking Savings Accounts From: Alice Thanks, Amos. |
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26 Sep 07 - 11:10 AM (#2157750) Subject: RE: BS: Online Banking Savings Accounts From: Becca72 If you want an account that gives you access to your $$$ look into a Roth IRA. Again credit unions usually offer the best rates. |
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26 Sep 07 - 11:42 AM (#2157775) Subject: RE: BS: Online Banking Savings Accounts From: John MacKenzie Sorry Alice it's just my particular bugbear at the moment, I had another automated call from an untraceable number since I posted previously. I have heard good reports about ING to answer your question. G |
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26 Sep 07 - 02:55 PM (#2157940) Subject: RE: BS: Online Banking Savings Accounts From: Alice John, sounds like you need to get on all the "do not call" lists. |
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26 Sep 07 - 02:58 PM (#2157942) Subject: RE: BS: Online Banking Savings Accounts From: John MacKenzie I AM on the do not call list, but if as I suspect, they are calling from outside the UK, there's nothing can be done! G |
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26 Sep 07 - 04:37 PM (#2158005) Subject: RE: BS: Online Banking Savings Accounts From: GUEST,guest Well, you might want to read some reviews of Emigrant. This one is negative. http://www0.epinions.com/content_180975603332 |
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26 Sep 07 - 10:58 PM (#2158192) Subject: RE: BS: Online Banking Savings Accounts From: Joe Offer An anonymous guest posted these. They're worthwhile information, but they were deleted because they were posted anonymously. -Joe Offer- Emigrant Account Disclosure Statement: https://www.emigrantdirect.com/EmigrantDirectWeb/information/consumer/AccountDisclosures.jsp Here is a compound interest calculator. Compounding 1,000. monthly for a year at 5.% realizes 1,051 and some change in a year.( If I did it correctly) http://www.moneychimp.com/calculator/compound_interest_calculator.htm |
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27 Sep 07 - 01:34 AM (#2158263) Subject: RE: BS: Online Banking Savings Accounts From: GUEST,ALCAN1 I use Emigrant and have never had a problem. Privious posters are correct in that the interest rates will be going down because the FED lowered interest rates by 50 basis points. This should be only for the short term. Interest rates will rise again in my opinion. Using a ROTH to access money, any retirement account, or Health Savings account to access funds is not a smart idea ever. Once you take those funds out of a ROTH you cant put them back in to the account. Borrowing from a 401K is stupid too as you are going to pay taxes on that money twice...once when you pay it back because you are using After Tax money from your paycheck to pay itt back, then you will be taxed on it again when you withdraw it for retirement. As for higher interest rates for the short term, there are a few good deals out there. Because of the housing bubble they will go down in the short term. If you are looking into getting a better yeild and have longer time horizon then oil investment trusts are a good way to go as well. They are taxed at a lower rate as well as some are based in Canada and you can receive tax credits on IRS 1040. There are many places you can grow your money but the rule of thumb is this...The less risk the less return. The more risk the greater the return. Dollar cost averaging into the markets is the best way. Remember we are going through a state of inflation the likes of we havent seen since the baby boomers killed our economy in the 1970s. The only difference today is the interest rates arent raising to reflect it as it occured then. I think its only a matter of time before that happens. As the baby boomers age they will continue to demand that their children and grandchildren pay for their greedy life style with higher interest rates, taxes and a lesser standard of living. My advise is save as much as you can and invest it for when we are hit with a huge tax increase in 2010. The tax burden on the lowest wage earners will increase by 33% in 2011. Thats already written into law and will occure. |
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27 Sep 07 - 06:25 AM (#2158368) Subject: RE: BS: Online Banking Savings Accounts From: GUEST,ALCAN1 Correction.....Thats a 50% TAX INCREASE on the lowest federal income tax bracket not a 33% increase. |
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27 Sep 07 - 09:49 AM (#2158502) Subject: RE: BS: Online Banking Savings Accounts From: pattyClink Wow, Alcan1. Great advice in that first paragraph, but what's going on in that last one? 1. Savings account risk = 0. Royalty trusts risk = 10. A hazardous time to be getting into these things, they have been rising for several years and you will be at great risk of 'buying high, selling low'. Additionally, they are 'wasting assets', that is they link to a block of reserves. As those are used up, so is your investment. They start paying your back with return of capital, rather than return on capital. Which is fine as long as you know what you're getting, and didn't pay top dollar for your units. Right now, you are paying top dollar. They have been a great asset class for 12 years, but they are by no means remotely close to a 'savings account'. 2. "Boomers" is a word including millions of people, perhaps you are using the word as shorthand for some smaller and more evil group. This (mid-cycle)boomer has not ruined your economy. This boomer has been the victim of a lousy economy and corrupt gubmint most of her life, and 'greedy life style' are words which apply to someone else. Whatever monies she paid into Social Security were handed out by a reckless pre-boomer Congress the same year they were earned. The real enemy at this point is still lousy leadership, and the gubmint is planning to solve its future problems by printing money. Our 5-10% returns are only illusory as long as the dollar is declining in value, all they do is try to catch up with inflation. |
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28 Sep 07 - 11:42 PM (#2159732) Subject: RE: BS: Online Banking Savings Accounts From: JohnInKansas While it says nothing about the relative merits of internet banking vs brick and mortar banks - both kinds can fail - some indication of what happens when one goes down may be gleaned from: Government shuts down online bank NetBank John |
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29 Sep 07 - 07:27 AM (#2159839) Subject: RE: BS: Online Banking Savings Accounts From: GUEST,ALCAN1 Yes there have been some banks that have failed in recent weeks due to the housing crunch. In fact there was a huge run on the banks in London late last week because of their exposure to the US housing market. These were brick and mortar banks. This has recieved no coverage here in the US and says alot about what is to come in the near future. As many US banks are owned by overseas investors this can happen anywhere...anytime. Just because its a bank doesnt mean its safe. All banks have risk but your accounts are insured by the US goverment up to $100,000. All you have to do is keep your records just in case. The US saw a run on banks in 1929 and again in 1987. We survived it then and we wll today as well. |
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29 Sep 07 - 12:07 PM (#2159937) Subject: RE: BS: Online Banking Savings Accounts From: GUEST,guest fnbo direct disclosure statement |