Should I go with the bank with the higher interest rate or better reputation?

Question

I want to open an interest-earning online checking account. I've heard nothing but good things about ING Direct but Charles Schwab is offering a higher interest rate. I'd like to hear from current customers about what you think of the banks' security, ease in transferring funds to and from your linked "regular" checking account, and customer service. Your advice is greatly appreciated!

ING's interest rate is 3.5%, Charles Schwab is at 4.45%.

Answer 1

For a bank to have a good reputation and deserve it is so rare that it's hard not to consider it. The difference between the banking "industry" and LCN* seems to hinge on the number of politicians they are able to bribe to legalize their extortion.
--------------------------------------------------
* La Cosa Nostra

Answer 2

I've had an online account for years, and there are good and bad in any account. The good side is the interest rates are very high compared to banks outside in town. You can also link the online account with your current checking account for automatic withdraws to your online account. The bad side is that if you need your money right away, it might be difficult to transfer funds to your regular bank account. It usually takes a few working days. Also, using an ATM is not very reliable because the online bank may not have a branch nearby. You will have to use an outside ATM and be charged a fee. Some banks pay a set amount per month for fees, some don't. But nearly all of them don't charge a fee to use another ATM because they know there is no branch nearby. And nearly all online banks only allow 6 transactions per month, otherwise, they charge a small fee. And watch your balance because some will charge a fee if your balance falls under a certain amount. I'm not sure about ING or Charles Schwab, but my current online account, which is gmacbank, answers all my customer service questions online within 1 to 2 business days and linking the account was simply done by verifying your regular checking account. Bank security I never get concerned too much about so long as they are FDIC insured.

Answer 3

If the interest rate difference is not significant, choose the bank with the better reputation because interest rates are easier to adjust than building a solid reputation.

My ING Direct account earns decent interest and transferring funds to and from other accounts is a snap because they are linked.

Things may have changed since I opened my account just last February, but it was necessary to link my ING Savings to my checking account at another bank to facilitate withdrawals.

Answer 4

I would honestly go with the higher interest rate, if you're in America. With the FDIC you won't get the same bank rushing that has been going on in England for a couple days because you're money is secure.

Answer 5

extra helpful recognition is extra helpful. the undertaking with information superhighway-in basic terms banks is that there is not any actual branch to stroll into for customer help. additionally, a number of those banks compete with one yet another. in case you circulate to the only with the better value in the present day, they're going to truthfully now not have the utmost value some weeks later. costs of hobby variety, you do not lock it in except it is a CD. consequently, evaluate a extra respected financial organization, and make confident it is handy for you. you ought to have the means to stroll right into a branch for servicing subject concerns, and have the means to withdraw $$ from ATM machines conveniently. additionally, assorted the classic banks have severe-yielding money marketplace debts you could open. they won't yield as much as 3 information superhighway-in basic terms banks, yet you ought to evaluate them based on the completed kit, not in basic terms yield. As I mentioned earlier...yield will replace considering which you won't be able to lock it in. Citibank at present grants 5.10% APY on their merely dazzling money Account. you will locate that on their web site. the great component is that even nonetheless you open the account on line...you likely can circulate to the standard branch for servicing subject concerns, or to apply the ATMs, and so on.

Answer 6

How much of a balance will you carry? You are probably talking about a half a percent difference in the interest rate. If you maintain an average balance of $1,000, that would be very little each year.