Comments on: Are Online Savings Accounts Worth It?

By: K

Tue, 18 Jan 2011 16:38:52 +0000

Online savings are great for a second or third account that you don’t plan on using. Always have a brick and mortar bank account for the emergencies in life, because the turn around for your funds is slow. If you do plan on using it, especially as a emergency fund, be aware that transfering the money in may take as long as a week and transfering money out may take 10-14 days.

By: Chris

Chris — Fri, 08 Jan 2010 04:52:24 +0000

I think they work just as well as brick and mortars.

By: Toddriffic

Toddriffic — Thu, 08 Oct 2009 05:06:12 +0000

I love doing my banking online, so it makes sense for me (especially considering the higher interest rates). Plus I have an ATM card if I needed cash quickly.

The one time I did need to speak with someone, it was a hassle. I went to the bank thinking someone could help me only to get the runaround for about a half hour until someone figured out I needed to call their corporate office.

Other than that, I really can’t complain. I just use it for my savings and rarely touch the account unless it’s to deposit/draw money (which is rare anyways).

By: daemondust

daemondust — Sun, 04 Oct 2009 00:00:32 +0000

I was a little reticent too, until I realized I’ve visited a physical branch of my credit union twice in the past year. Everything else I’ve done online or through ATM’s, and banks that are exclusively online tend (as they should) to have better user interfaces than those where it’s an afterthought tacked on as technology grew up around them.

By: jillianlou

jillianlou — Tue, 22 Sep 2009 01:19:50 +0000

I find it interesting that you say they are worth it but then list mostly negatives – can you explain a bit more about why?

By: Rod

Rod — Sun, 20 Sep 2009 14:11:29 +0000

As a Fossil (over 50)it is funny to read how the loss of personal relationships in banking is perceived today. Don’t worry, I am not about to lecture you young pups on the good ole days when the bank lobby had a real friend in it that was empowered to “bend” the rules. However I must share that when I talk with my 82 yr. old Mom, and she remembers real oatmeal and food from her garden, (now Organic and mostly Marketing) we agree that “they” can’t wait for the older generation to die….then “they” can tell the next gen how great the diluted (service,food,etc) they are getting is with no one around to refute it!

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Tue, 15 Sep 2009 12:04:00 +0000

I love my online account– out of sight, out of mind. Great for emergency accounts!

However, you still need an account around the corner too.

By: max

max — Sat, 12 Sep 2009 00:53:26 +0000

I view the list of hassles as actually being some of the benefits of online banks.

Phone and online customer service only:

Thank god, you mean I don’t have to deal with people in person and am not required to leave my house. This is definitely a benefit.

You won’t build a relationship with the bank:

I mean, a quick smile and hello is nice, but I can do without the additional relationships. It’s a little embarrassing having friends know how broke you are when you’re asking if you have enough funds to cash a $15 check.

Interest rates fluctuate all the time:

For similar accounts that are free, most brick and mortar accounts don’t offer higher rates than the lowest fluctuations of online bank rates, so I guess I can live with the bipolar interest rates.

Higher probability you’ll get phished:

Is getting phished really an issue anymore? People, please, just hit delete.

Infrequent website outages:

I can’t say I’ve ever experienced this with any of my online accounts, but maybe they do their network updates while I’m sleeping.

I love my online accounts, but maybe that’s just me.

I saw your other article about closing your HSBC savings account, but I think I would keep mine around even if I only has a few bucks in it. It’s always a nice place to store some cash.

By: Sam

Sam — Sat, 12 Sep 2009 00:05:22 +0000

I use my ING online savings account as an intermediary for my family member’s checking accounts so we can do free wire transfers. My sister helps pay for the mortgage on a house we bought together. It was really inconvenient to meet every month to get cash or a check from her. So, I set up my ING online savings account to automatically draw directly from her checking account. (I’m CHASE and she’s WELLS FARGO)

By: Victor

Victor — Fri, 11 Sep 2009 11:43:49 +0000

I have two accounts a checkings with USAA, and a online savings with DollarSavingsDirect.com. I never had a problem with any of the two. I guess the only down side to this is if you transfer money it can take up to 5 days to get the transfer between the two accts. The good thing is that USAA lets you used any ATM for free, and their online bill pay is superb…. the online saving is where I store the cash that I don’t wanna touch and it helps me save. I wish they had the subaccounts options like “ing” but I can deal with that. When I open my online savings I was getting a 4% apr but now is down to 1.70%

By: eric

eric — Thu, 10 Sep 2009 20:59:28 +0000

Perfectly worth it for me.

By: Lulu

Lulu — Thu, 10 Sep 2009 19:48:35 +0000

One ‘hassle’ you forgot to mention was the wait time if you need a large amount of cash and have to do a transfer to a regular bank first.

I am also a big fan of ING and I have not had any problems with them. I don’t use cash at all since I am working my credit card rewards programs and I have not felt any need to build a relationship with my banker.

I give online savings accounts two thumbs up!!!!!

By: centsandthecity

centsandthecity — Thu, 10 Sep 2009 19:38:01 +0000

I’ve never had a problem with ING, but I’ve had horrible horrible problems at my community bank. I’ve sat in the bank for over an hour to open an account. I’ve had checks debited TWICE, bounced checks because of the random double debit, and had the manager basically tell me there was nothing they could do. It was a $400 check debited twice and I was only 19 at the time so it really wiped me out, and they said they fought with me about giving me my money back.
So I expect a hassle when it comes to banking, and ING had really been perfect so far.

By: zapeta

zapeta — Thu, 10 Sep 2009 17:15:26 +0000

I haven’t had any headaches with any of my online banks…I’ve worked with WaMu, ING, Etrade and Amtrust and the only real hassle I had was getting Chase to close my old WaMu account that I wasn’t using during the transition.

By: Anno ny

Anno ny — Thu, 10 Sep 2009 15:20:05 +0000

ING’s online bill pay and check sending features alone make it worth it to me.

Being able to pay all my bills in one place is a convenience I can no longer live without.