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Diversify Your Online Bank Accounts

For the last ten minutes I’ve been trying to access ING Direct [3], to no avail (it’s now available, but it was slow for about half an hour). While I’m certain my funds are safe and nothing is wrong, it certain solidifies the notion that you should be diversifying your bank accounts.

Websites go down. In fact, websites go down pretty often and usually it’s not a big deal. However, if the website is your only interface with a bank, then it becomes a very big deal. That’s why I always recommend that you diversify your online savings accounts in the event something like this happens. I’m not a good example, because I recently told you about how I had a dozen savings accounts [4], but if all of your savings are in one bank, you might want to spread it out a little. (here are some high yield savings [5] options)

If you don’t feel like dealing with more than one bank, here’s another suggestion. Make sure that you can withdraw funds from your online savings account through your main checking account. If you remember my financial network map [6], my main checking account has no awareness of my savings accounts.

I can’t go to my checking account and try to transfer funds from my ING Direct. That’s bad. If I could, then INGDirect.com going down wouldn’t bother me as much. Try to have that in place if you can.

Remember that nothing happens in real time with online savings accounts, so being down for an hour doesn’t really hurt anything. However, hours have a funny way of stretching into days whenever you least desire it.

Just a thought!