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Online High Interest Savings Accounts?

I'm looking at options to put my emergency savings into so that I still have access to the funds, but I noticed that online savings accounts have a much higher interest rate than my saving account with my bank. Is the ING Orange a good option? This was the account recommended to me, but I would like to know if there are better options? Should I be looking at other savings vehicles entirely?

Jan 19, 2012 by Ellen from Las Vegas, NV in  |  Flag
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I think ING's Orange savings account is a good option. They offer a competitive interest rate with no fees or minimums. However, I've read that some people are concerned with ING since Capital One purchased them. Here's an article covering the concerns:

http://moneyland.time.com/2011/06/17/capital-one-buys-ing-direct-and-customers-start-to-freak-out/

Personally, my wife and I use HSBC Direct for higher interest online savings, and we've been pleased with them, but there are several other options out there. Just make sure there are no fees or minimums that could cause issues for you, and make sure you can easily access your funds when and how you want to.

I also use Ally Bank for online checking. They have a competitive interest rate, no fees, and have been a pleasure to deal with.

If you have any more specific questions about this, please clarify below.

Comment   |  Flag   |  Jan 19, 2012 from Atlanta, GA

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Herbert N Glass Level 18

Check out American Express, Ally Bank and EverBank. EverBank may not have the higher rate than the other two, but they do have other alternative bank products that will allow you to put your money into CDs that pay interest but are denominated in other countries currencies. So if you have any thoughts that the value of another countries money may become more valuable that the US dollar during the holding period of the CD, then you would earn both the Stated Interest Rate plus any appreciation in the countries currency that may occur. Obviously this is more risky than just keeping you investment in US Dollars because you could find that the foreign currency decreased in value during the holding period and that would result in a decrease of the Stated Interest Rate.

If I remember correctly, these bank CDs, even though issued in foreign currency still will be insured by the FDIC, even though the currency is not being held in Dollars.

I hope this helps you.

Sincerely,

Herbie Glass, MBA, Certified Pension Consultant Glass Retirement Strategies, Inc. Bingham Farms, Michigan www.glassretirement.com

Comment   |  Flag   |  May 05, 2013 from Franklin, MI

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Herbert N Glass Level 18

Check out American Express, Ally Bank and EverBank. EverBank may not have the higher rate than the other two, but they do have other alternative bank products that will allow you to put your money into CDs that pay interest but are denominated in other countries currencies. So if you have any thoughts that the value of another countries money may become more valuable that the US dollar during the holding period of the CD, then you would earn both the Stated Interest Rate plus any appreciation in the countries currency that may occur. Obviously this is more risky than just keeping you investment in US Dollars because you could find that the foreign currency decreased in value during the holding period and that would result in a decrease of the Stated Interest Rate.

If I remember correctly, these bank CDs, even though issued in foreign currency still will be insured by the FDIC, even though the currency is not being held in Dollars.

I hope this helps you.

Sincerely,

Herbie Glass, MBA, Certified Pension Consultant Glass Retirement Strategies, Inc. Bingham Farms, Michigan www.glassretirement.com

P.S. Today, on 5/5/2013, the money market rates being paid is: Ally Bank = 0.84%; American Express = 0.85%; and, EverBank =. 1.01%. Each bank is also paying a higher rate on their CDs.

Comment   |  Flag   |  May 05, 2013 from Franklin, MI

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