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Author Topic: Opening a new savings account  (Read 2617 times)

JeNeSaisLaw

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Opening a new savings account
« on: May 15, 2008, 08:21:43 PM »
So rather than depositing my loan checks into my checking account after disbursement, I figure I'll put it into a savings account so I can earn some interest. I don't have a savings account right now, as all my other money is in a mutual fund, so I need to open one up because, hey, checking accounts might as well not be earning interest.

Is anybody else doing this? It seems like the obvious thing to do, but I haven't read much about others doing it. I'm thinking of going with ING Direct, but was wondering if anybody else had any other suggestions. It seems any FDIC insured online bank will be better than a brick and mortar place, but apparently some b&m places are trying to compete with the online banks (just don't know who is actually competitive).

I wasn't even going to bother shopping around, because I thought nobody could compete with 5%+...but apparently their rates aren't that high any more (http://home.ingdirect.com/products/products.asp?s=OrangeSavingsAccount). Is this because of the economy being *&^%? Or just a matter of something else?
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rtqw

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Re: Opening a new savings account
« Reply #1 on: May 15, 2008, 09:01:24 PM »
I have a HSBC online savings account, which at least when I opened it, had a marginally higher interest rate than ING. They have lowered their interest rate too in the past year - from about 5% to 3%.
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slightlybehind

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Re: Opening a new savings account
« Reply #2 on: May 15, 2008, 09:11:56 PM »
I have a ING account and as already meantioned, the rate has dropped from around 6% to 3%.  The APR is tied to the federal funds rate and this is why it has moved the way it has.  These online savings accounts are the best you will find though.  So I would suggest opening an ING account.  Try to find a friend that has one already becuase they will give him $$ to refer you.

JeNeSaisLaw

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Re: Opening a new savings account
« Reply #3 on: May 15, 2008, 09:12:58 PM »
My GF has ING, so she'll definitely be happy to have that extra $10 haha.
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Re: Opening a new savings account
« Reply #5 on: May 15, 2008, 09:56:23 PM »
I have a HSBC online savings account, which at least when I opened it, had a marginally higher interest rate than ING. They have lowered their interest rate too in the past year - from about 5% to 3%.

same story over here.
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sinkfloridasink

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Re: Opening a new savings account
« Reply #6 on: May 16, 2008, 01:21:53 AM »
I'm extremely naive when it comes to finances, so I have a really dumb question for y'all: How/when exactly does interest in a savings account "pay out?" As in, do the banks calculate the, say, 5% based on how much is in the account at the end of the year? Beginning? When you initially open your account? One calendar year from when you initially opened the account?  I ask this because there can't a ton of money left after one gets done paying their bills for the entire school year. I apologize for sounding extremely dumb - I was a history major, and can't talk my way out of a wet paper bag when it comes to finances/numbers.
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Re: Opening a new savings account
« Reply #7 on: May 16, 2008, 01:33:31 AM »
I'm extremely naive when it comes to finances, so I have a really dumb question for y'all: How/when exactly does interest in a savings account "pay out?" As in, do the banks calculate the, say, 5% based on how much is in the account at the end of the year? Beginning? When you initially open your account? One calendar year from when you initially opened the account?  I ask this because there can't a ton of money left after one gets done paying their bills for the entire school year. I apologize for sounding extremely dumb - I was a history major, and can't talk my way out of a wet paper bag when it comes to finances/numbers.

Most banks credit interest once per month. Look for the info in the terms and conditions.

Talk Is Cheap

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Re: Opening a new savings account
« Reply #8 on: May 16, 2008, 02:02:43 AM »
They pay monthly but you don't get the 5% or whatever they advertise every month...it's a 5% APY (annual). When all is said and done keeping your money in a savings or money market account for a few months isn't going to get you much. Especially if you earn anything on it, you'd technically have to pay tax on the money you earned if it was just in a standard savings or money market account.

rosalita

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Re: Opening a new savings account
« Reply #9 on: May 16, 2008, 04:13:40 PM »
I have an ING account and I think its great - and def get your GF or whoever to refer you bc they get $10, but you get $25!