Online Banking?

[dr.mel_PT]

I was thinking about transferring my savings into an online banking account like ING or Ally, whichever yields the highest rates. Only problem is, I have NO clue how online banking works and I'm kind of worried about transferring money to a place that "doesn't exist." How do I take money out if I need it? I'm assuming you get debit cards like any other bank but are they affiliated w certain brick & mortar places or would I get charged every time I need to make a withdrawal? Any tips would be great!! Currently I'm earning a measly 0.10% interest rate on my savings and some of these places are offering upwards of 1%...still not great but better.

 

[Fit_mommy]

I have been using ING for years. They DO have a few branches but not many. You'd have to look on their website to see where they are located. I have a mac card but it only accesses their checking account. You can not access savings through it. To get to the savings you have to transfer it to an accessible account in ING or another bank. I appreciate the more limited access to the cash. This is where I keep our main savings account so I do not need/want total accessability to it or it may not exist!

 

[Jane A]

Melissa,

I would suggest you go to www.bankrate.com, where you can get information on online banks, including interest rates and a rating for how healthy they are.

Usually for these accounts you'll get checks and deposit slips, same as usual. So if you need money, you can write a check on that account and cash it at your local bank. If you want to deposit money, you mail it with a deposit slip or arrange for electronic transfer from your local bank, probably for no cost.

 

[dr.mel_PT]

I would suggest you go to www.bankrate.com, where you can get information on online banks, including interest rates and a rating for how healthy they are.

Thanks ladies! Jane, right after I posted this I did check out Bank Rate and found a pretty decent interest rate on there. I think I might do this. It just scares me moving away from the "traditional" way of banking.

 

[mabdoo]

You could open an acct with a bank that is local and has online banking if there is one around you like that. We do that. We direct deposit our checks and can transfer money online from savings to checking to an online only savings acct, etc. We also pay bills that way. We also don't have to pay any ATM fees if we go to this bank to use their ATM. Just keep in mind that you cannot make more than 6 withdrawals from a savings acct in a one month period from any bank. When we opened the online accts a few years ago the interest rate was up to 6.25% and it was a great way to earn extra cash on money that just sat around in your regular savings acct. Now I think ours is down to 1.3%, maybe even less.

 

[angie_nrs]

You might want to consider checking with your local credit union for their money market account interest rates. I was going to open an online account until I realized that I could get the same interest rate of the top online banks at my local CU. Basically they are all horrible rates right now, but the CU MMA was competitive....and I feel more comfortable b/c I have immediate access to it if I needed it. Some online accounts take up to 5 days for you to get money.

 

[JT]

I have done exactly what Angie typed about a few months ago, I opened an IMMA with my CU and received a good rate plus access to it as well.

 

[dr.mel_PT]

Thanks for the tips! How would I look into a Credit Union? I don't know anything about them...

The lag time in transferring money did raise a flag for me when it came to the online banks. I have a "house fund" for when I'm ready to buy and a regular savings fund, so I was thinking of transferring the house fund into the online account and leave some money in my emergency savings account, just in case I ever needed some money right away.

 

[Govtgirl]

Gosh, I haven't been to a bank in ages!! I do everything online. I use Bank of America. They have branches if you have to use them, but I get my checks deposited directly, pay all my bills online, check my mortgage balance....it's great.

 

[JT]

Melissa,
go to www.lovemycreditunion.org and you should be able to find credit unions in your area that you are elgible to join. Or, check the yellow pages. Look for online banking, debit cards, free bill pay as well with no monthly fees.

JT