This article is out of date, the rates have since increased.

One question I’ve always grappled with is where to put my emergency/short-term funds. I have come to two conclusions: ING Direct or Emigrant Direct. Both are fighting each other with competitive rates, so what’s the difference?

ING Direct - Well known for their 2.60% savings account that you fund via ACH transfer and withdraw with the same. Not only do you get the 2.60% but you can get a $25 bonus if someone sends you a referral. You can visit this self-serve $25 ING Direct promotion page for referral links. There are no fees and no minimum balance, your cash is FDIC insured. $25 bonus will be treated as 1099-INT income for tax purposes (just like regular bank interest).

Emigrant Direct - They are relatively new in the internet banking game but they’re offering 3.0% which is a little higher than the 2.60% of ING Direct. They’re reputable because their brick and mortar business has been around for a while but there aren’t any bonuses. There are no fees and no minimum balance, your cash is FDIC insured.

Which one should you choose? Well, I personally use ING Direct because they offered the $25 bonus and I didn’t feel a need to open up a second account for the extra 0.40%. Would I be averse to Emigrant Direct? Of course not, they appear solid but I do not have any personal experience with them. In both cases, you can transfer funds in and out in a matter of days and there have been reports of people who pay directly from their ING Direct using ACH transfers to credit cards (using routing and account numbers). While ING Direct doesn’t explicitly support that option, some have used it successfully.

My vote personally is for free money and 2.60% savings interest for a short term place to park some emergency funds.

Update (on 5/21/07): The current prevailing rates are 5.05% from Emigrant Direct and 4.500% from ING Direct.

Hello everyone! This is the first post of a new era. I started Ease of Travel in November of 2003 with the intent of fully populating it with the best travel bargains available out there. As time passed, the travel portion of the site became less and less important and I decided that the domain name no longer matched the goals of the site, and so I moved on and renamed it Bargaineering.

The site will continue to list the great bargains and deals available online from vendors like Amazon and Buy.com, but in the articles (Blueprint for Financial Prosperity, or pfBlueprint) section you are reading now, I’ll talk about matters of personal finance and throw in some product reviews and some of the more complicated deals, those that involve are more than a coupon or rebate. Be on the lookout for how to get huge discounts from Comcast Internet and Cable service as well as reviews and comparisons of various services such as online movie rentals and digital photo printhouses. As always, all comments, critiques, recommendations, and requests are appreciated!