February 15th, 2010
Compare And Choose An Online Savings Account
Americans’ renewed sense to save money is the silver lining of this rough recession. The personal savings rate averaged nearly 4.6% in 2009, while for most of the decade it barely reached 2.5%, reports the U.S Department of Commerce. As more and more consumers make their savings accounts a priority in their personal finances, the key features of online savings accounts will determine what the best-fit piggybank is for each individual.
Do you need a long-term hold on your money, or the ability to move money rapidly? Do you demand excellent customer service, or are you more concerned with restrictions on your account? Online savings accounts aren’t one size fits all; check out the following chart to learn more about which provider meets your needs.
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Ally Bank
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Capital One
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Dollar Savings Direct
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FNBO Direct
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HSBC Direct/HSBC Advance
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ING DIrect
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WT Direct
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RATES/BALANCES
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APY (as of 2/15/10)
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1.44%
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1.45%
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1.40%
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1.40%
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1.20%
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1.20%
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1.41%
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Max balance allowed
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Unlimited
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1MM
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2MM
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1MM
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2MM
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1MM
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Unlimited
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Min balance allowed for highest rate
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$0
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$2,500
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$1,000
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$1
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$1
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$1
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$10,000
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SERVICE
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Live person on phone
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Yes
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No
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No
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No
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No
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No
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Yes
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Click to call
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No
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No
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No
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No
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No
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No
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Yes
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Mobile banking
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No
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No
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No
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No
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No
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Yes
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Yes
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ACCOUNT TYPES/FUNDS TRANSFER
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|||||||
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Totten Trust accounts offered
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Yes
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Yes
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Yes
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Yes
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Yes
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No
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Yes
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Number of external bank links permitted
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Unlimited
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Unlimited
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3
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3
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Unlimited
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3
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Unlimited
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ATM Card
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No
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Yes
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No
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Yes
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Yes
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No
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No
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Next day ACH transfer availability
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No
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No
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No
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Yes
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No
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No
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Yes
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Able to initiate transfers from another bank
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Yes
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Yes
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No
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Yes
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Yes
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No
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Yes
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Initial hold period for adding funds (new accounts)
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5 days
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10 days
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5 days
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10 days
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None
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10 days
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7 days
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Subsequent hold period for adding funds (existing accounts)
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5 days
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5 days
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5 days
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None
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None
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5 days
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3 days
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Wire funds ability
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Yes
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Yes
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Emergency Only
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Yes
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Incoming Only
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No
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Yes
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*Source: U.S. Department of Commerce: Bureau of Economic Analysis
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Our Featured Savings Account Provider:
WTDirect caters to more affluent customers, and though the minimum balance sets the bar high at $10,000, you get premiere features tailored for consumers that have large deposits. WTDirect provides unlimited account linking and transactions to other financial institutions, easy mobility of money, diverse ways to transfer funds, concierge-style account representatives, client access to expert economic advisers from Wilmington Trust, and the ability to establish Totten Trust accounts (to add beneficiaries). If you need a safe, FDIC-insured bank to trust your wealth with, check out WTDirect.
You can use an ATM card from ING Direct. It uses a network with ATMs at every 7-11 and many other locations.
I think you also mixed up Ally and Capital One when it comes to ATM cards. I’ve had accounts at both and Ally does give an ATM card while Capital One does not.
Savings rates are getting lower and lower, within a ten day time frame from the time this article was published, a good portion of the banks mentioned above have lowered their rates.
I don’t think 2010 will be the year we’ll see an overall rise in savings rates, perhaps in the last quarter of the year when banks start to realize the actual interest rate is for the majority of savers the dominating factor that attracts new and hold existing clients.
Good post. I’m going through many of these issues as well..