2007-06-08 04:20:42 · 5 answers · asked by human_way 1 in Business & Finance ➔ Personal Finance
Absolutely! I've have an ING Direct account for three years. No problems, great rates ,and easy to sign up and manage. I've provided a link below if you want to check them out.
Yes there are better ways to invest but if this is for your emergency fund, and everyone should have around 4 to 6 months of take-home pay, it should go into a virtually no-risk, FDIC insured, high-yield savings account.
2007-06-08 05:47:21 · answer #1 · answered by Land Shark 3 · 1⤊ 0⤋
As long as the company is FDIC insured, they are a good way of getting a reasonably high rate with zero risk. They are not a good long term investment, but are well suited for saving for (say) a car or a house deposit, because although the rate may vary, you will never lose principle.
Remember when comparing to adjust for inflation. You must deduct the current inflation rate (2.5%) from the actual return (usually around 4.5%). So the growth in value of your investment will be around 2% per year. Compare that with the potential over a long period of a growth in the stock market of 6% adjusted for inflation, and you can see that equity funds are a far better way to save for retirement.
2007-06-08 05:15:10 · answer #2 · answered by Anonymous · 1⤊ 0⤋
I have two (INGDirect and HSBCDirect).
Online accounts generally pay a much higher rate of interest.
So, yes, they are good and reliable.
2007-06-08 04:30:31 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
yes, they are. A bit more of a hassle but worth it.
We have INGDirect and are making more interest than available at any of the local banks or credit unions.
2007-06-08 05:04:09 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Why don't you invest in index funds? It's a much higher rate of return over the long run.
2007-06-08 05:15:47 · answer #5 · answered by Phillip 3 · 0⤊ 1⤋