I've been shopping for an internet bank, but then the Fed lowered the interest rate. Should I?

Question

I've been looking at internet banks and getting ready to open an interest-earning checking account with INGDirect. Then interest rates dropped and I'm getting cold feet. I figure it's still a better deal than the interest rate my bank gives (which is practically nothing) but I'm new to all of this and would appreciate some advice. Thanks!

Answer 1

Yes it's worth it.

The best checking On-Line offerings that I know of are;
www.EverBank.com
www.INGDirect.com (2nd best rate, poor ATM choices)
www.Schwab.com (best rate)

We use EverBank. They have many more ATM's available. Easy deposits via;
Electronic (ACH)
Bank by mail (they pay postage)
ATM deposits (no charge), many banks available.

based on what I know, my choices would be in the following order;
EverBank
Schwab
ING

All are FDIC insured. All have "Bill Pay". Everbank does require a $1500 average balance for free Bill Pay (it's the only negative thing I can say).

BTW: GMACBank.Com is my first choice for savings. They do have ATM cards (fee reimbursed automatically) and checks..... but.... it's not a checking account.

Answer 2

Be very careful about the internet-only banks. ING especially is difficult to get your money when you need it. You need to balance your yield vs. your convenience.

Some of the traditional banks have high-yielding money market accounts. I saw an ad for Citibank that is yielding 5.10% APY, and they also had a 7 month CD at 5.35% APY. Take a look around and see what the regular banks offer.

Answer 3

I see that GMAC is offering a money market checking that pays 5.35% as long as your bal is not below $500

Answer 4

fees are envisioned to fall back, yet not via FED. verify the loan sponsored securities traded on the bonds industry. they are what make sure loan fees. in case you desire some refinancing techniques or you have added questions on your concern, be chuffed to touch me.