Addicted to Online Banking
May 19th, 2006 | by Molly's Brother |If you can’t already tell, I am addicted to online banking of any type. Online bill pay was a personal revolution in my life. No more errands to the post office to pick up stamps. No more calling to reorder checks. No more mailing bills off days before their due just to make sure they get processed in time.
Online savings, though, is what I am really addicted to. I do love my INGDirect. But EmigrantDirect.com and HSBCDirect.com continue to offer higher annual percentage yields. Emigrant is offering an APY at 4.50%. HSBC is a hefty 4.65%. INGDirect is at a paltry 4.15% for their online savings account. Furthermore, HSBC.com compounds your interest daily, whereas ING only compounds it monthly. I may research this a bit more. There may be a change in the future. (Note: Thanks, Flexo for illustrating how this difference doesn’t matter.)
Honestly, though, I haven’t heard great things about HSBCDirect. Individuals have complained in other online forums that electronic desposits take too long to register. I have no complaints with INGDirect. If it ain’t broke…?
I’ll keep you posted.
3 Responses to “Addicted to Online Banking”
By Tim MMF on May 20, 2006 | Reply
Daily compounding? Sounds darn good.
By Tazzee on May 20, 2006 | Reply
I’m going to check back to read your review on HSBC - I like the daily compounding. And while I’ve enjoyed ING for the past two years, I have no problem switching.
By Flexo on May 20, 2006 | Reply
With savings accounts, you’re comparing APY, not APR, so whether it compounds monthly or daily isn’t important… APY measures the gained interest as a result of the compounding method.
ING credits your interest monthy. HSBC probably does the same, I can’t imagine any bank that would credit your accrued interest daily. For most people it would be a fraction of a cent.