Monday, October 30, 2006

Need Help Choosing Online Savings Account

I've been with ING Direct for years. One of the things I like about them is the ability to easily set up subaccounts--for example, one for saving for a car, one for home repair, etc. Also, it's easy to buy CD's from the main account, without having to setup a whole new account and going through the whole setup and verification process again. One problem has been that they lag in rates (4.4% compared to 5.05% at HSBC Direct or 5.5% at E-Loan). More of a problem for me is that they've apparently changed their linking policy over the last couple of years and won't link to my Fidelity account (which is actually a United Missouri Bank account that is swept into/out of by Fidelity each day). So when I went to add a link to my main savings account at Fidelity, they rejected it.

I had written a few weeks ago that I felt that interest rates on such accounts were topping out and the 5.5% at E-Loan was likely to be the top for a while. So, I was all set to move to E-Loan. The problem there is that you have to setup a whole new account for each "subaccount" you'd like and for each CD you want to purchase. You have to go through the whole procedure of setup and verification all over again each time. Also, there's a $5,000 minimum so I can't setup that car account yet since I don't have that much saved up for it.

Any suggestions? I'd like a place where I can (in order of importance) 1.) link to my Fidelity account, 2.)easily create subaccounts or extra accounts, 3.) setup monthly transfers from a linked account to the savings account, 4.) get a decent rate, and 5.) easily buy CD's. I know I can't get that all in one place, so I'd settle for getting the first three or four.


4 comments:

Jonathan said...

Have you considered buying Fidelity money market funds? They are currently yielding over 5%, although they have higher minimums. No subaccounts, and I'm not sure about CDs though.

Not very many banks offer subaccounts that I am aware of.

gte said...

That's a good idea. My main interest is in segregating the money (for example, the money that I'm saving for buying a car in a few years). Buying a separate MM fund would allow me to do that. A few years ago, the rates at MM funds was lower than ING's. Now the situation's reversed.

The Financial Flow » WKRP in Cincinatti said...

[...] Need Help Choosing Online Savings Account I’ve been with ING Direct for years. One of the things I like about them is the ability to easily set up subaccounts–for example, one for saving for a car, one for home repair, etc. Also, it’s easy to buy CD’s from the main account, without having to setup a whole new account [.] (more) [...]

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