High Yield Accounts: ING, HSBC, Emigrant, etc.
December 9th, 2006 | by Molly's Brother |
I haven’t done this in a while, but I think it’s important to share the information every couple of months. So much of my traffic comes from people trying to figure out the difference between the following high yield savings accounts: ING, HSBC, and Emigrant.
WHERE TO BEGIN?
People are often overwhelmed by the thought of researching financial decisions. This results in delaying basic research and–ultimately–delaying any financial action. The web is filled with so much free and accurate information which makes researching financial issues much easier.
People arrive at this site trying to figure out the difference between the different online savings accounts. This chart at bankrate.com serves as one of the most comprehensive and up-to-date tools for comparing these high yield savings accounts. Not only are the annual percentage yields listed, but the chart also provides other crucial information (like account minimums and compounding methods).Be aware that money market accounts appear in this chart, too. Money market account operate differently than a savings account.
READ ONLINE REVIEWS
In addition to becoming better informed about the hard facts, it is also important to take into account others’ experiences with these institutions. Let’s face it, how a business treats us and our money is equally as important as their APY.
Online saving accounts that aren’t linked to brick-and-mortar banks can be frustrating if you’re not familiar with them. Many times, there’s a three day turnaround between when you request your money and when it appears in your checking account. However, once you understand this timetable, it’s not much of an issue.
INGDirect, in my experience and from what I’ve read, has excellent customer service. Even though it lags slightly behind with their APY, it’s worth the 0.5% differential.
About six months ago, there seemed to be some trouble with transactions with HSBC and Emigrant, but a quick review shows that those issues have been resolved. But read my past posts on ING vs. The Others.
Also, if you’re a pf blogger and you’ve had recent experiences with any of these banks, please comment. So many people stumble onto our pages everyday hungry for any information.
BOTTOM LINE: ACT
The bottom line is that you need to research your options and act on it. Most traditional banks provide an APY of 0.5% for savings accounts. Even though we know that a savings account is not an investment opportunity, don’t you want the money you park away to at least keep up with traditional rates of inflation?
Related:
The Orange Savings Account. Earn 4.50%. Great rates, no fees, no minimums
