Online Savings: Who has the best rate?

[emperor_black]

In these troubling times, any sort of investment is scary. So, I have most of my money in an online saving account. I used to be with ING direct when their interest rates used to be good. In the past month, its dropped almost 1.5%. Now they're offering only 1.83%. HSBC is giving 2.25%. But I'm not too happy with HSBC's customer service. Other than these two, who gives the best interest rates for online savings that you trust with?

Credit unions give good rates, but they're very finicky in their banking policies and the money is not FDIC insured. Its insured privately though.

[Rich#6]

Its insured privately though.

What do they mean by that? Is it some sort of colateralization with another bank( probably securities)? If so it is probably internal only and not 3rd party(banks will only do this for government accounts). Your money is not as safe you they would have you think. Fair market value of securities are down the shitter too.

[rjohnstone]

Credit unions give good rates, but they're very finicky in their banking policies and the money is not FDIC insured. Its insured privately though.

Who told you that lie?

Credit Unions are federally insured through the NCUSIF.
That's the NCUA version of FDIC insurance and it's backed by the federal government that same way FDIC funds are.

The National Credit Union Administration (NCUA) is the federal agency that administers the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF, like the FDIC’s Deposit Insurance Fund, is a federal insurance fund backed by the full faith and credit of the U.S. Government.
The NCUSIF insures member savings in federally insured credit unions, which account for approximately 98 percent of all credit unions. All federal credit unions and the vast majority of state-chartered credit unions are covered by NCUSIF insurance protection.
Credit unions that are insured by NCUSIF must prominently display the official NCUA insurance sign. No credit union may terminate its federal insurance without first notifying its members.

Some reading for you...

http://www.ncua.gov/ShareInsurance/Index.htm

[emperor_black]

Looks like Rick beat me to the NCUA info. So, what's the difference between a NCUA insured and FDIC insured?

[DonP]

I'll give you 10% - no 15%.

Just paypal all your money to me

[Spivonious]

Hey, all those rates are better than my bank's current rate of 0.25%.

If you're interested in getting a high rate of return while being in a low-risk situation, look into money markets.

[rjohnstone]

So, what's the difference between a NCUA insured and FDIC insured?

None.

Your deposits are insured up to $250k just like they are under FDIC.

[emperor_black]

Thanks. A search for money market accounts led me to a website called DollarSavingsDirect. Funds are FDIC insured too and they offer 3.05%. Anyone heard or have an account with these folks?

https://www.dollarsavingsdirect.com/DollarSavingsDirectWeb/index.jsp

[missionguitars1]

I've used ING Orange for a while...they aren't the highest-paying, but the Dutch gov't infused some capital into the parent to stabilize them and I'm comfortable with that...others to look at if you are bent on moving are https://www.everbank.com/ and https://www.emigrantdirect.com/Emigr...tWeb/index.jsp

[Bert]

Right now I am using Capital One Online Savings Account and Meriwest Credit Union High Yield Money Market, both at 2.5% APY (for suitable minimums).

Been thinking about checking out the Dollar Savings Direct account, but I suspect that the rate is a teaser rate and will soon come down to earth. But it doesn't hurt to take advantage of it while you can I suppose ... it's easy enough to move money between these sorts of accounts.

[thebigz]

Keep your ears open for local ads, I know of at least 2 credit unions that are doing 5%+ as long as you do direct deposit and have 12 debit card transactions/month. Its also on checking accounts, so there is no limit to how many withdrawls you can make per month like there is with money market

[broken_fusion]

https://www.bankrate.com

Compare for yourself. I went with GMAC last year when they were 4.75 Last time I looked it was half.

[horns666]

I had a CD at 4.5% for 13 months. That matured, and the best I found was a 18 month CD at 2.5%. That sucks, but I'll take what I can get.

[kp59]

I'd stay with a local brink and mortar bank right now.

there have been 14 banks taken over by the FDIC already this year after only 26 all of last year.

and it looks like 4-6 of the big "too big to fail" banks may get taken over soon (tuesday?).

search online there are places that rate even local banks or ask friends /business people in your town which bank is most solid and put your money there, for now.

remember even though the FDIC is covering up to $250K now, you are NOT guaranteed to be able to get all you money immediately. If you have it at Citi , BOA or chase and they get taken over, there wil NOT be a buyer to take over those banks in one day.

be happy your earning anything right now and wait until the zombie banks are shut down. Then we'll see the start of things moving foreward again.

good luck.