best internet savings accounts???

[Laker]

Please help me out. I am looking for a high interest savings account with an atm/debit card that will waive atm fees.

I thought I read somewhere about fidelity but I can't find it. Please give me some links/specifics as to the best ones.

I really appreciate it. Thanks.

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[etf]

http://personal.fidelity.com/accounts/aong/sca_learn.shtml

 

[TMP-SMX]

Please help me out. I am looking for a high interest savings account with an atm/debit card that will waive atm fees.

I thought I read somewhere about fidelity but I can't find it. Please give me some links/specifics as to the best ones.

I really appreciate it. Thanks.

Why don't you just have the traditional savings/checking account and funnel your money in that to your high yield savings where you don't touch the money for a while. Just use the online transfer. I have the Citi Ultimate Savings Account. 4.5%.

http://direct.citibank.com/cbol/07/usa/thirdpartymedia/learnmore.htm

Plus I think debit cards are useless. It's like paying 30 bills a month rather than one. Use a credit card and pay once a month for the full balance.

 

[etf]

Why don't you just have the traditional savings/checking account and funnel your money in that to your high yield savings where you don't touch the money for a while. Just use the online transfer. I have the Citi Ultimate Savings Account. 4.5%.

http://direct.citibank.com/cbol/07/usa/thirdpartymedia/learnmore.htm

Plus I think debit cards are useless. It's like paying 30 bills a month rather than one. Use a credit card and pay once a month for the full balance.

i like my idea better. get a fidelity "checking" account, and invest your excess cash into the fidelity select money market fund...and earn 5.14%.

i actually have the entire balance of my checking account in the money market fund - every time i write a check (rarely) or go to the atm (frequently) the account sells enough of the fund to pay for it. there isn't a similar product in the entire financial services industry that can compete with it (at least in my opinion).

 

[Unlimited415]

Why would you recommend the checking account over the savings?
I'm looking at the mySmartCash Fidelity accounty and it offers 3.50 APY versus the CitiBank savings acct link that offers 4.50 APY. Do you recommend the checking simply so you can have all your money invested?

I'm considering just transferring my current BofA saving's account to the CitiBank Savings and my checking to mySmartCash Fidelity....are there any downsides to that bank? (Online banking, ATMs, ?)

 

[TMP-SMX]

Why would you recommend the checking account over the savings?
I'm looking at the mySmartCash Fidelity accounty and it offers 3.50 APY versus the CitiBank savings acct link that offers 4.50 APY. Do you recommend the checking simply so you can have all your money invested?

I'm considering just transferring my current BofA saving's account to the CitiBank Savings and my checking to mySmartCash Fidelity....are there any downsides to that bank? (Online banking, ATMs, ?)

I don't even know where the ATMs for the citi account are. I think they are at 7 elevens around. Of course like I said I don't use cash except to have a bit on hand at all times.

What I drew from his post is that you open up their money market account in addition to the 3.5 APY account and have both with a higher interest other account. If not, then I don't understand either.

 

[Tenesma]

most local banks will compete - i frequently have different banks argue over my money and i just shuffle it around - plus i don't have to worry about restrictions of the internet/availability of money

one large bank offered 4.6 on high-yield savings so i negotiated with my other bank and they brought their money market account up to 4.7 - which in turn i brought to my federal credit union and they offered me a promo 4.8% for 5 months, which i took back to the money market account and they made it 4.95% promo for 6 months... and that took all of 30 minutes (and driving back and forth - cause you ahve to do this in person w/ their managers)...

 

[etf]

I don't even know where the ATMs for the citi account are. I think they are at 7 elevens around. Of course like I said I don't use cash except to have a bit on hand at all times.

What I drew from his post is that you open up their money market account in addition to the 3.5 APY account and have both with a higher interest other account. If not, then I don't understand either.

kind of. the actual smartcash account is a checking account that earns 3.5%, but you are also allowed to purchase securities in the account like a general brokerage account. so you could purchase a fidelity money market fund and have it earn a much higher yield.

 

[Laker]

I signed up for the capital one high yield money market and I am getting 4.75%.

 

[Doctor Bagel]

I've had ING for ages and like it. My savings rate is 4.2% and checking is 3.25%. I think both were higher until a few days ago. Citi, Emigrant Direct and a few others have higher rates. ING's more established now, so they don't have to have the very best rates. I'm too lazy to change, though.

I get cash so infrequently that I've actually forgotten my pin number. Oops.

 

[spyderdoc]

I have accounts with ING, Emigrant Direct, and HSBC for savings. I like Emigrant the best because it seems to transfer the money faster than ING and HSBC (1-2 days vs 3-5 days)

I also have a Schwab checking that earns 4.7ish%, and now I am less motivated to move my money into Emigrant since the difference in interest is minimal....

I like the fact that all of these accts are linked together, so I can do all my stuff online...

I tend to move money around a lot between my accounts since I am independent contractor and have to save for quarterly taxes, so during each quarter, I like my $$ to earn as much interest as it can....

 

[txterp98]

I have accounts with ING, Emigrant Direct, and HSBC for savings. I like Emigrant the best because it seems to transfer the money faster than ING and HSBC (1-2 days vs 3-5 days)

I also have a Schwab checking that earns 4.7ish%, and now I am less motivated to move my money into Emigrant since the difference in interest is minimal....

I like the fact that all of these accts are linked together, so I can do all my stuff online...

I tend to move money around a lot between my accounts since I am independent contractor and have to save for quarterly taxes, so during each quarter, I like my $$ to earn as much interest as it can....

Hey Spyder, have you considered opening a tax-exempt money market fund with Vanguard? (I'm sure Fidelity has one, too, I'm just not as familiar with their products) They invest in a variety of stable short-term municipal funds to keep their share price fixed at $1. All the interest is considered tax-exempt as it is invested in municipalities. Though the quoted yield at face-value may appear lower than the high-interest accounts of ING, Emigrant, etc., the taxable-equivalent yield tends to work out higher for those in the higher tax brackets (which I'd imagine you're in). If I'm not mistaken, you practice in California....Vanguard has a specific California tax-exempt money market fund for your state. If I'm wrong, you can use the general tax-exempt money market fund they have available. By having your yield remain non-taxable, you might have an easier time tax-harvesting deductions/losses at the end of the year to get to a lower marginal tax bracket.

Activeduty and/or ETF, do I have my info right on this? I've learned a lot from you guys and as I've told Activeduty, your advice/wisdom has done wonders for me already.

 

[etf]

Hey Spyder, have you considered opening a tax-exempt money market fund with Vanguard? (I'm sure Fidelity has one, too, I'm just not as familiar with their products) They invest in a variety of stable short-term municipal funds to keep their share price fixed at $1. All the interest is considered tax-exempt as it is invested in municipalities. Though the quoted yield at face-value may appear lower than the high-interest accounts of ING, Emigrant, etc., the taxable-equivalent yield tends to work out higher for those in the higher tax brackets (which I'd imagine you're in). If I'm not mistaken, you practice in California....Vanguard has a specific California tax-exempt money market fund for your state. If I'm wrong, you can use the general tax-exempt money market fund they have available. By having your yield remain non-taxable, you might have an easier time tax-harvesting deductions/losses at the end of the year to get to a lower marginal tax bracket.

Activeduty and/or ETF, do I have my info right on this? I've learned a lot from you guys and as I've told Activeduty, your advice/wisdom has done wonders for me already.

usually tax-exempt funds yield more than their taxable equivalents at the higher marginal tax rates (i.e. 28-35%). fidelity's california municipal money market is the default money market account option for the account;i'm not sure how vanguard works since i don't have an account, but i'd imagine it would be similar.

 

[spyderdoc]

Interesting. Thanks, I will have to look into this....Like I said, I am constantly moving money b/w my accts (checking and savings). I get gross checks, so I got to put some away for quarterly taxes as well as for property taxes. So I stash the money into the high yield online accts (Emigrant) and take out each quarter to pay taxes......As long as these municipal funds are relatively liquid, this may be a good thing for me....

 

[Futuredoctr]

ING Orange savings!!! Its the best! INGdirect.com If you pm me with your email address, I'll send you link to sign up with a FREE $25 bonus, no joke!

 

[Stroganoff]

Have had ING Direct and Emigrant Direct for about 1.5 years. Love both. ING has really innovative security features when you log in (the PIN pad), and the graphical user interface is simply amazing. Emigrant used to be clumsy as far as navigation, but their current interface is very straightforward. I've noticed transfers taking about the same amount of time for both. Also, both claim to have a 5 business day hold on all new deposits: ING is strict with this, whereas Emigrant usually only holds for 2-3 days.

ING was one of the early players in direct banking so acquired a pretty huge member base and hasn't been super competitive with APY the last couple years at all. Emigrant (and HSBC usually identical but lately lower) is in the top tier of reliable online bank accounts, especially accounts that only require $1 to open. Certain other accounts that require $1K, $5K, $10K, $50K, $100K to open may have slightly higher yields, but not always.

Will probably open up a second Emigrant account in the next week. [Edit: I'm considering other options at this point. Gonna wait till after the 12/11/2007 and 1/30/2008 rate meetings to see how the field levels out.]

Both highly recommended, secure, and reliable uptime. $1 to open.

Note: My affiliation with any businesses mentioned in this post is that of a consumer for personal finances.

 

[Laker]

I have zero affiliation with any finacial services companies. Just trying to get some ideas

 

[etf]

people might say i have an affiliation with fidelity, but i'm just an extremely extremely satisfied customer.

 

[Stroganoff]

Just a note on HSBC Direct: They calculate interest using the average available balance, not the average ledger balance, so if they hold your deposit for 5+ days (including non-business days), word has it you're not getting interest for those days.

 

[Yourmother]

anyone say ING Direct yet?

 

[Stroganoff]

people might say i have an affiliation with fidelity, but i'm just an extremely extremely satisfied customer.

I read the main webpages, the FAQs, and the PDFs for the mySmartCash account and some of the cash money market funds and figured I'd ask you on this:

1) I assume the mySmartCash account accepts payroll direct deposit. But what about EFT/ACH transfers from another checking account? Also, if I wanted to deposit any other paper check, could I mail it in? One of my current employers still uses paper checks, and I get paper checks from other sources as well. Need a physical way to deposit this.

2) Do you have or know about the Fidelity credit card that offers 1.5% cash back (minimum 5000 points = $75)? (not the one for 529 savings plans, the other one). Wondering if said rebates can be redeemed to the mySmartCash account or if they need to go in an actual investment account.

 

[etf]

I read the main webpages, the FAQs, and the PDFs for the mySmartCash account and some of the cash money market funds and figured I'd ask you on this:

1) I assume the mySmartCash account accepts payroll direct deposit. But what about EFT/ACH transfers from another checking account? Also, if I wanted to deposit any other paper check, could I mail it in? One of my current employers still uses paper checks, and I get paper checks from other sources as well. Need a physical way to deposit this.

2) Do you have or know about the Fidelity credit card that offers 1.5% cash back (minimum 5000 points = $75)? (not the one for 529 savings plans, the other one). Wondering if said rebates can be redeemed to the mySmartCash account or if they need to go in an actual investment account.

1. yes, mySmartCash as well as the Fidelity Account accepts payroll deposits. yes, you can do free ACH transfers from external checking/savings/brokerage accounts. yes, you can mail in paper checks; also, if you live near a fidelity investor center you can take them there.

2. i don't have the fidelity credit card, but i hear it's a good deal. i'm not sure if you can have the deposit go into the mySmartCash account (i would imagine that you could), but if not, you might as well just open a Fidelity Account - it's not like there's a minimum balance or maintenance fees or anything.

 

[blanche]

I read the main webpages, the FAQs, and the PDFs for the mySmartCash account and some of the cash money market funds and figured I'd ask you on this:

1) I assume the mySmartCash account accepts payroll direct deposit. But what about EFT/ACH transfers from another checking account? Also, if I wanted to deposit any other paper check, could I mail it in? One of my current employers still uses paper checks, and I get paper checks from other sources as well. Need a physical way to deposit this.

2) Do you have or know about the Fidelity credit card that offers 1.5% cash back (minimum 5000 points = $75)? (not the one for 529 savings plans, the other one). Wondering if said rebates can be redeemed to the mySmartCash account or if they need to go in an actual investment account.

I have both accounts so maybe i can shed some light..:

the mySmart Cash acct does accept direct deposit. it is a new account, and i think they are really trying to push it so there are some nice freebies thrown in to make it appealing--including a whole stack of pre-stamped envelopes (no stamps needed, i believe..) to send in paper checks with deposit slips. ACH transfers can be set up also (this is what i do)--no charges to transfer to/from the account (ie you can 'pull' money from another checking account if you have a bank like Bank of America that assess a fee to initiate transfer of funds..) No atm fees/refunds at other banks' ATMs--nice to have. A whole box of free checks (not sure if they charge for additional boxes..) I got it b/c I have the credit card, and having the mySmart cash acct gives you somewhere to have your rewards $$ that you can actually get back in cash (you don't have to invest it in a brokerage acct) Right now, i'm just lettign my rewards earn ~3% interest in the mySmart Cash account, sort of a rainy day cash fund.

 

[UserNameNeeded]

Blanche, I think most of those things that are free in the MySmartCash accounts are already free in the regular Fidelity brokerage accounts. I don't think Fidelity has any fees (except the mutual fund short term trading fees and stock trading commissions, and there's a fewer number of "free" ATM transactions than in the MySmartCash account).

I would get the Fidelity credit card (Fidelity doesn't own or manage it, it's FIA Card Services which is another company). You have to put in the Fidelity account number at the card's website.

Checkbooks and replacement checkbooks are free in the brokerage accounts.

 

[etf]

Blanche, I think most of those things that are free in the MySmartCash accounts are already free in the regular Fidelity brokerage accounts. I don't think Fidelity has any fees (except the mutual fund short term trading fees and stock trading commissions, and there's a fewer number of "free" ATM transactions than in the MySmartCash account).

I would get the Fidelity credit card (Fidelity doesn't own or manage it, it's FIA Card Services which is another company). You have to put in the Fidelity account number at the card's website.

Checkbooks and replacement checkbooks are free in the brokerage accounts.

the main difference is that in the Fidelity Account (i.e. the regular brokerage), they don't refund the fees charged by other banks whose atm you use unless you have assets >$500k.

 

[carnitor]

Are there any others out there who use Emigrant?

 

[scrubswannabe]

I opened a Wamu online account and its been great for me. It has everything you seem to want and it's a checking account so I get an ATM card. It also has like 4.75 % APY I believe, but you need to check that number.

 

[etf]

I opened a Wamu online account and its been great for me. It has everything you seem to want and it's a checking account so I get an ATM card. It also has like 4.75 % APY I believe, but you need to check that number.

as a shareholder who is down 48% on an investment he made less than 2 months ago, i thank you.

 

[scrubswannabe]

LOL
thats life

 

[longaadoc]

I have both emigrant direct and amtrust direct accounts. Currently I have all my money in amtrrust direct as it is paying higher interest rate. So far I am very satisfied with both accounts. You can do all transactions online which is very important for me. And both of them are usually very quick in transferring money.

 

[Unlimited415]

Anyone nerdy enough to put put all the pros and cons discussed into a table or bullet point list?

 

[etf]

Anyone nerdy enough to put put all the pros and cons discussed into a table or bullet point list?

sure.

pro: fidelity is the best at everything
con: everything else

that's the best you'll get out of me

 

[Unlimited415]

Okay, I guess I'm the nerdy-enough one.
The following are in general assuming $500 minimum balance. CDs with $1,000 minimum, I think. I didn't read all the fine prints, though. Attached are the APY's...I don't know what the different b/t "APY" and "Rate" are for CD accounts, though...they gave both.

Based only on APY, it seems Emigrant Direct is the way to go for savings. GMAC for checking? There's probably other things I'm not seeing like how often you can use your checkings, etc.

Fidelity:
Checking (ish?) @ 3.50%
3-mo CD @ 4.80%
12-mo CD @ 4.65% (I don't get why longer term investment has lower APY...)

Citibank:
Savings @ 4.00%

ING Direct:
Savings @ 4.20%
Checking @ 3.25%
12-mo CD @ 4.70%

EmigrantDirect:
Savings @ 4.75%

HSBC:
Savings @ 4.50%
Checking @ .05%
12-mo CD @ 3.00%

GMAC:
Money Market (Savings? But with Checkcard...) @ 4.50%
12-mo CD @ 4.50%

Washington Mutual
Checking @ 0$ unless you keep $1,000 in it
Savings @ 4.75%
Money Market ... well minimum is $10,000 unless you're doing a retirement account.

 

[Stroganoff]

I always review (and sort) the rankings from bankrate.com:

http://www.bankrate.com/brm/rate/mm...=chksav&market=416&product=33&state=US&sort=2

but from there DON'T go strictly by highest APY. read lots of reviews on the banks on forums like fatwallet.com/forums and creditboards.com/forums.

For instance, there's a checking account that gives 6% APY right now but requires monthly direct deposit and 10 scheduled ACH transfers per month. Not sure if I wanna mess with that, but those two forums are pretty amazing.

 

[Unlimited415]

I just had a long conversation about accounts and money management with my roommate, simply from asking what kind of accounts he had. I think the best way to learn is finding someone who knows all about it, in practice, so they can tell you basics of what you need to know. Then, later on you can read a book on it.

It helps if whoever you ask has parents who know a lot about managing money like his does...this way they grew up learning about money, not just reading it from a book or internet site. They probably already have experience with it, too, because they're parents probably started them off or at least gave them the incentive/motivation.

My roommate also recommended this blog: http://www.mymoneyblog.com/

Best of luck. This is a great topic, especially for students who don't come from backgrounds where they'd learn about this stuff.

 

[Unlimited415]

For instance, there's a checking account that gives 6% APY right now but requires monthly direct deposit and 10 scheduled ACH transfers per month. Not sure if I wanna mess with that, but those two forums are pretty amazing.

What would an ACH transfer entail? I've got the biweekly direct deposit down, guaranteed....

Thanks for the info.


I'm thinking I'll keep my checking account with BoFA...just for convenience, unlimited ATM transactions, local branches, and I've been with them for a bit and so have my parents...if that counts for anything in their eyes (probably not)....unless I can find a kickass comparable online checking account.

Then keep most of my money in online savings...I'll have to research all the ones with APY's in the 4.5% area and make final decision based on bank reviews, features, perks, downsides, etc. (Something to replace my pathetic BofA CD accts at 1.8%!!! which I used to think was good)

I might go ahead and start a Roth IRA eventually depending on what the minimum amount is, as a long long term thing. Need to learn more about that, though.

 

[Unlimited415]

Latest one I've been hearing about is iGoBanking...4.90% for savings. Anyone have this?

ETrade and FNBO are the other highest ones whose name I've heard. Don't know anything about them, though. They might not provide ATM locations, etc...but really I can do with mailing in checks or online transfers.

These things are tricky. For example in the link Dallenoff gave above, the bank with the highest rate that has an internet link is AmTrust, but it only tells you the 90-day intro interest rate. I can't find the standard one, even when I go to the general rates page. And you get fined if you close the account in under 180 days. That's 90 days that could have an interest rate of -10% for all we know.

I was also reading online that some people constantly change accounts depending on who has the highest rate at the time.

 

[Stroganoff]

Eh, changing accounts isn't always the best way:
1) If they have tons of money, they lose quite a chunk of interest on the days the money's being moved (with checking account as the middle man).
2) If they're po', chasing interest rates is kinda an empty endeavor since the interest gained is negligible. For instance, I started off with ING, and although it's no longer super duper competitive (still rock solid and great GUI), I leave the money in there and still contribute to it. I opened one at Emigrant for a different goal.

I read an article on fatwallet forums that E-trade's going under? I don't wanna sound alarmist, but I recommend reading more about this before using them.

I do know that FNBO Direct had a 6.00% promo APY for like the past 6 months and just recently dropped down (still pretty high). As they are a new bank, I'm watching them. I'm currently honestly comparing FNBO Direct and UFB Direct and reading others' experiences.

I was really gungho about AmTrust Direct here on SDN for awhile (I had a CD with them with 100% positive experiences) but haven't jumped in bed with them yet. They had the "e-Money Market" account @ 5.36% forever and recently started an e-Savings account with identical (?) terms? And I don't want a 90-day bait-and-switch only to have them start sucking after it's done. But that's just my two cents on AmTrust Direct. So while I had a perfect experience with them with the one CD I had, I'm hesitant to open a savings with them at this moment. Their web interface is sloppy and completely atrocious though.

 

[etf]

I read an article on fatwallet forums that E-trade's going under? I don't wanna sound alarmist, but I recommend reading more about this before using them.

i doubt that e-trade will go completely bankrupt - i'm sure that someone like schwab or even scottrade would gobble them up first. besides, the SIPC protects all the securities in your accounts, and the FDIC would insure the cash (if it's in a fdic insured sweep account).

 

[gida]

I get direct deposit into a checking account but at payday move most of it over to HSBC savings account. At HSBC I am saving for a house down payment and my emergency fund. I have had no issues with HSBC.

 

[Unlimited415]

Just saw that Washington Mutual has 5.00%APY for a 6-month CD for only $1000 ... best I've seen so far for that low of a balance. Beats BofA's 1.8% that I have right now...

 

[Unlimited415]

On second thought...why am I opening more CD's...I might be applying for financial aid very soon for some extra courses I'm taking. Do they take into account total savings or just interest from those savings?

(I'm sure this discussion must have taken place already...)

 

[TMP-SMX]

On second thought...why am I opening more CD's...I might be applying for financial aid very soon for some extra courses I'm taking. Do they take into account total savings or just interest from those savings?

(I'm sure this discussion must have taken place already...)

Total savings. If you want to get around it have the money put into either your parents/SO's bank account before you file your FAFSA and you don't have to worry about the money you have in your accounts. I wouldn't recommend doing this with thousands and thousands of dollars, but you didn't hear it from me anyway.

One legitimate thing you can do is pay off all of your debts before the FAFSA so you lower your CoA. Of course it will be 0 for a vast majority of the cases unless you make over a certain amount when you file as a graduate student (considered an independent so parental income plays no role). If you file the 1040EZ you have a CoA of 0.

 

[Unlimited415]

Gotcha.

BTW, back to the online accounts, I'm looking at UFBDirect.com Apparently only reimburse up to $4.50/month in ATM fees from other banks and don't have online transfer capabilities. APY is 5.22, though.

I have yet to withdraw from my saving's account except to put into a CD a couple times, so I'm thinking it wouldn't be a big deal. I'd deposit once or twice a month when I get my paycheck...or maybe I I'll get lazy and end up not doing it...

http://www.emoneycentral.com/UFB-Direct-Interest-Rates-and.151.0.html


Edit: Ah, you get an early closing fee of $30 if you close within 180 days.
Since my current savings are going to go into paying for upcoming extra courses (I'm out of school/graduated right now), that won't work for me. But for you long-term savers, their interest rate has been consistently rising...good record.

Edit2: Actually, the easy way around that is not to close the account if you need all your funds. Just leave the minimum 1$ in there.

 

[Stroganoff]

^ That's a good site, Unlimited415. Thanks for the pointer.

Edit: And regarding its review of UFB Direct:

A few negatives to note about UFB Direct concern electronic funds transfers and credit pulls.

Unlike the majority of online banks, UFB Direct does not offer free ACH transfers (the main way that people electronically transfer their funds from their online savings account to their checking account). Customers can use UFB Direct's Money HQ Services to move funds, but they will incur a charge of $2 for each transfer made outside the bank.

UFB Direct does not charge a fee for ACH transfers that have been initiated from another bank to push funds into or pull funds out of UFB Direct.

The main way to move funds into UFB appears to be by sending deposits through the mail using pre-stamped envelopes provided by UFB Direct. Withdrawals can be made using the ATM card.

As for credit pulls, it is possible that UFB Direct will pull a hard credit report when you open an account. This could adversely affect your credit score.

Whoa... I take free ACH transfers for granted, and having to mail in a check (money cost of 1 envelope + 1 stamp and time cost of 3+ days) for each deposit will kinda discourage me from depositing. The ATM card is kinda cool, but it'll encourage me to withdraw. The hard inquiry is kinda a bummer too. Glad I read this.


We'll see how banks handle the possible Fed rate change next Tuesday the 11th.

 

[UNR.Grad]

Sorry to re-open an old thread but I currently have a BofA checking account with a linked savings account (<$5k total), neither of the accounts have high interest rates. I never write checks and rarely ever use cash so a large network of ATMs is not important to me (I use credit cards to make all purchases, have direct deposit, and pay all bills online), but like to have the option of doing either if needed. I never live paycheck to paycheck, so waiting for credit from a mailed deposit to pay bills would not be a problem. What do you think of just having an online checking account w/ a high interest checking account, like a Schwab or one of the others mentioned in this thread, and not having a savings account? Seems like it would be perfect, most have free online bill pay, direct deposit, and ATM fee repayment. What would you do?

Also, is there any benefit to having a savings and checking account (remember I have less then $5k in them)?

 

[etf]

Sorry to re-open an old thread but I currently have a BofA checking account with a linked savings account (<$5k total), neither of the accounts have high interest rates. I never write checks and rarely ever use cash so a large network of ATMs is not important to me (I use credit cards to make all purchases, have direct deposit, and pay all bills online), but like to have the option of doing either if needed. I never live paycheck to paycheck, so waiting for credit from a mailed deposit to pay bills would not be a problem. What do you think of just having an online checking account w/ a high interest checking account, like a Schwab or one of the others mentioned in this thread, and not having a savings account? Seems like it would be perfect, most have free online bill pay, direct deposit, and ATM fee repayment. What would you do?

Also, is there any benefit to having a savings and checking account (remember I have less then $5k in them)?

sounds like a good plan - bank savings accounts are basically set up to sucker us into giving banks low cost funds to earn money on - why not earn it ourselves. as i mentioned before, i really, really like fidelity mysmartcash...plus there is a fidelity investor center easily accessible to me for branch deposits (although schwab is much much more accessible here in san francisco where it's headquartered). all the same, keep the bofa account if it's free in case you need to make deposits, but shift your savings into a money fund at fidelity.

 

[bbaker]

It appears that most banks are dropping the rates by .25%- HUGE DROP! Emigrantdirect has dropped all the way to 4.5%

From my little research in appears that Countrywide.com (5%) and Etrade (5.05%) are the best online saving accounts right now.

ETF- isn't mysmartcash (Fidelity) the same thing as an online savings account without the money market? I'm trying to figure out why Fidelity (3%) is better than an online savings paying 5%. Both have immediate access to funds.

 

[etf]

It appears that most banks are dropping the rates by .25%- HUGE DROP! Emigrantdirect has dropped all the way to 4.5%

From my little research in appears that Countrywide.com (5%) and Etrade (5.05%) are the best online saving accounts right now.

ETF- isn't mysmartcash (Fidelity) the same thing as an online savings account without the money market? I'm trying to figure out why Fidelity (3%) is better than an online savings paying 5%. Both have immediate access to funds.

mySmart cash is a checking account. you can pay bills with it, write checks, buy securities, do anything with it. that 3% rate is if you use the default FDIC insured part of the account to hold your cash. but most people (i.e. me) just invest the cash into a money marker fund, such as FSLXX, which is more competitive with online savings rates. plus, it will automatically sell FSLXX when there are drafts on the account - i.e. you write a check or take money out of the atm. incidentally, lets not forget the amazingness of unlimited atm fee rebates.

 

[Whisker Barrel Cortex]

I've got emigrant direct and the rate came down from 5.15 when I first got the account to 4.55 now. However, I've also got their credit card. I use it for everything and get 1.4% cash back deposited directly into my account, which got me a lot of extra cash this year.