I have Citi E Savings and Emigrant and have been happy with both of them.

One thing that hasn't been mentioned here is how easy it is to add external accounts on the Citi site. So far, it's as easy as Ameritrade. I love the flexibility. That's my only gripe with Emigrant. You are limited to 2 accounts and to add the 2nd one you have to send in a check by snail mail.

A good article from CNN Money on Citi's new account, $3 Billion in new money in just a couple months.


Citigroup CEO Prince: New online bank rocks
In just over two months, Citi's high yield Internet savings account have drawn a solid $3 billion in new deposits but is it cannibalizing its other branches to do it?
By Shaheen Pasha, CNNMoney.com staff writer
June 1, 2006: 12:39 PM EDT
NEW YORK (CNNMoney.com) - Just two months after Citigroup jumped into Internet banking, the company's high-yield online savings account is rocking, Citigroup CEO Charles Prince said Thursday.

Speaking at an industry conference in New York, Prince said the bank's new online savings account attracted $3 billion in deposits since the online bank launched in late March, with two-thirds of that "new money to the institution," the equivalent of opening 23 new branches.

"In the first ten days [after the launch], we had ten times the volume we predicted," he said. "Only a few weeks after the launch, we raised $3 billion in deposits."

Prince said while the company is opening new brick-and-mortar branches "for the first time in a long time," the Internet bank is one of its latest initiatives in Citigroup's (Research) quest to attract new customers.

Citibank Direct launched in late March, offering Citibank customers a 4.75 percent annual percentage yield on savings - making it one of the highest paying online banking sites available to consumers.

Competitor INGDirect - which pioneered the online savings account model - currently pays 4.25 percent while EmigrantDirect - the fast-growing online savings arm of New York-based Emigrant Savings Bank - offers customers a 4.65 percent annual percentage yield.

But unlike ING Direct and EmigrantDirect, Citigroup's entry into the online saving account market was viewed with some concern by analysts who feared it could wind up cannibalizing profits from the company's existing branch network.

Bart Narter, a senior analyst at research advisory firm Celent LLC, said the company, in its efforts to "land both hot money and the primary banking relationship" was seeing many of its existing customers move their money from lower yielding instruments to the high-yielding online accounts. And that was raising Citi's cost of funds, he added.

Narter said that while two-thirds of their new deposits may be new money, that still means the company cannibalized $1 billion from other parts of its retail banking business. And given the difference between the high online rate and the far lower rates of its traditional accounts, he estimated the new deposits cost the company $40 million to achieve.

"Even for Citibank that's a lot of money," Narter said. "On the plus side, in another month, the growth of this [online bank] would rank it among the top 150 banks. They can grow this bank quickly, but it's costing them real money to do it."

But Prince, speaking at the conference, dismissed the criticism adding "we're better positioned for the ultimate move to online banking. It will become the dominant way of doing banking and with our better nationwide brand... we have the ability to go for it in ways others don't have."

Prince said the bank was looking to create "a full relationship with customers" by insisting that online banking customers also open a separate checking account at the company - a requirement other online banks don't have, although ING Direct has expressed interest in adding checking accounts.

Online banking is hardly new territory. Recent studies have indicated that more and more consumers are turning to the Internet to meet their banking needs. A report by Javelin Strategy & Research indicated that online banking was particularly popular with younger users, age 18-24.

Meanwhile, high-yield Internet savings accounts have become increasingly popular in recent days. Propelled by the success of ING Direct, banks such as HSBC (Research) and Capital One (Research) have also opened high-yield savings accounts.

Citigroup last year began testing an online savings account with a yield of 3.25 percent for customers who had a checking account with Citibank.

-----------------------------------------------------

Is online banking right for you? Find out here.

LaJollaInvestor said:I have Citi E Savings and Emigrant and have been happy with both of them.

One thing that hasn't been mentioned here is how easy it is to add external accounts on the Citi site. So far, it's as easy as Ameritrade. I love the flexibility. That's my only gripe with Emigrant. You are limited to 2 accounts and to add the 2nd one you have to send in a check by snail mail.That's what I love about GMAC, it uses the online 2-test-deposit-verification method, no need to mail anything in and allows you to link accounts that dont have physical check.
I was even able to link it directly to my Citi eSavings account (as well as the Citi checking account)
So far I have 7 linked accounts, if they have a limit I haven't hit it yet.

scott1961 said:x43b said:

If FDIC insurance, majority ownership by an exterior group, the 10 billion plus cash hoard that GM has, that multi BILLION DOLLAR PROFIT that GMAC makes every year and continues to make means you lose "piece [sic] of mind", you have paranoia issues.
Not quite Billions in profit but a net profit of $90.7830 million with an ROA of 2.64% makes them look to be a very safe bank. I don't have an account with them but I would have no problem using them. Would rather open with them than one of those $100 Million in total assets CU's we see here

From Bankrate:
GMAC BANK
GREENVILLE, Delaware
bankrate.com. Star Rating ««««
Safe & Sound CAELSM Rating 2G


GMAC BANK is a nationally-chartered thrift institution, which, as of December 31, 2005, reported $9.6652 billion in total assets. Mortgage loans and deposits held by the institution, at that date, amounted to $9.3094 billion and $4.2184 billion respectively. December 2005 net worth, the difference between total assets and total thrift liabilities, was determined to have been $708.7850 million which was 7.33% of total assets. For the year ended December 31, 2005, the company recorded net income of $127.8020 million which represented an annualized return on assets (ROA) of 1.99%. Year earlier full year results amount to a net profit of $90.7830 million or a 2.64% annualized ROA. An ROA of 1.0%, within the banking community, is a benchmark of solid profitability, and the thrift industry's ROA for the full year of 2005 approximated 1.2%.

I said GMAC, Scott...

The only bright spot in GM's portfolio has been its General Motors Acceptance Corp., its financing unit that is expected to turn in profits this year of around $2.7 billion, according to Prudential Equity Group.

Linky

searching4deals said:x43b said: I said GMAC, Scott...
The only bright spot in GM's portfolio has been its General Motors Acceptance Corp., its financing unit that is expected to turn in profits this year of around $2.7 billion, according to Prudential Equity Group.
Linky

I agree, but hypothetically, if GM were to declare bankruptcy, what happens to GMAC Bank if they're 49% (or more) owned by GM?

BTW, I think the 51% outside ownership will not be finalized until 4Q06 - until then, GM owns 100% of GMAC Bank, right? Link

Unprofitable airlines still operate and honor airline tickets when they declare bankruptcy, why on earth would an FDIC insured, HIGHLY PROFITABLE, financing outfit steal your money?

Ok, don't do hypothetical, GM goes bankrupt and for some bizarre reason even though they are profitable (with more than loans for GM cars, they make their profit in other ways too) they say, screw you guys, we're taking GMAC down with us. Within a week some other bank has purchased your accounts and you have access to your money.

Show me one example in the last 20 years where an FDIC insured bank "stole" your money for more than a week before you could get access to it after they went bankrupt. Apparently losing 3 days of interest each time you transfer money is no big deal so surely a 1 time week loss wouldn't be that bad.

Edit: These scenarios you guys are trying to come up with to make GMAC "risky" are so absurd I can't wait until we get into..."yeah, well, but what if someone with a super electromagnet flies over all of the GMAC buildings simultaneously (including offsite backups) in a helicopter and erases your records"

searching4deals said:
I never said anyone stole my money, and I didn't say anything about 3 days loss of interest. I'm just asking questions since I've never been in a situation to utilize FDIC insurance before. I think it is wise to be "informed" before doing business with these firms, and FWers are known for being very informed consumers. Thanks for your thoughts.

I wasn't responding to you personally but to several people (failure of english "you" can mean singular or plural). If you are interested, Scott1961 has made several informative posts about FDIC insurance and even started a thread I believe. Since this isn't that thread people asking off topic questions can expect to get brief answers even if it rubs them the wrong way. Still doesn't change the fact that some people (not you searching4deals) accept 4~6 days of loss time every time they deposit and later withdraw money but it totally freaks them out that they may have to wait the same 4~6 days (or less, I've heard of 0 day or next day turn arounds) for bank failure.

Transfer delays at certains banks are guaranteed (100% likely).
Bank failure probabililty is extremely small and even it if happens is no worse than those other banks transfer delays.

I'm failing to see the rational argument against GMAC here.

Edit: Search4deals, if you are so concerned about being "informed" then you typed "fdic insurance" into the search and looked at the first topic to come up, right?

I use Capital One Online High Yield Savings - currently at 4.55% apy - and I really like it. Easy to open, easy to use, nothing to mail in. I would highly reccommend it to anyone.

However I am intrigued by the high praise for GMAC and will be taking a serious look at that.

Quick question: Since you can write checks from it - does the account come with a "standard routing number" and "checking account number" that enables you to use it for BOTH online bill pay (pay credit card for example) AND for "direct deposit" from paypal for example?

Thanks!

I am still sticking to my old old ING account.
I have been using it for maybe 5 years? Still love it.
Currently, I open a one year CD account every month, so I can enjoy 5.25%APY and have money matured every month at hand to cope with unexpected expenses.

FWgunn said:hoffjm00 said:LaJollaInvestor said:I have Citi E Savings and Emigrant and have been happy with both of them.

One thing that hasn't been mentioned here is how easy it is to add external accounts on the Citi site. So far, it's as easy as Ameritrade. I love the flexibility. That's my only gripe with Emigrant. You are limited to 2 accounts and to add the 2nd one you have to send in a check by snail mail.

How long did it take you to get the Citibank set up and running? How is the transfer time from external accounts?

Here's my experience:
* I'm a completely NEW customer to Citibank.
* 5/23: I applied for the acct.
* 5/24: I faxed my proofs of residence (bank statements, Citibank CC bill, etc) and signature card in a 9 page fax
* 6/1: I received a welcome pkg with another signature card.
* 6/2: I called about the signature card. After speaking to a rather useless indian CSR, she transferred me to a "personal banker" who said that: a) Citibank received by 9pg fax and confirmed my sig b) the second signature card isn't necessary c) he will recommend that someone review the 9pg fax
* 6/6: I received a letter stating that they still don't have my proof of residence. I called and asked them WTF was going on and was told "someone is looking for my fax in the 'backoffice'"
"What?! You don't scan incoming faxes?"
"No"
"Well, someone registered my signature. It's part of the same fax. Why didn't they verify my address."
"It's a different person's job to do that"
"Would it be easier or harder for Citibank if I just resent my fax?"
"Uhm, it would make things easier."

I'm quickly losing faith in Citibank. It's been 2 weeks and my &^!@#$#@ checking acct still isn't open so I cannot open up an eSavings acct. I better receive my bonus for this crap.

-g

Yikes. As a test, I opened up a Citi checking / esaving combo account. I drive by one on my way to work, so I can simply drop a check off into my esavings and not worry about wait times. The Citi would work great for me in other respects as well.

x43b said:These scenarios you guys are trying to come up with to make GMAC "risky" are so absurd I can't wait until we get into..."yeah, well, but what if someone with a super electromagnet flies over all of the GMAC buildings simultaneously (including offsite backups) in a helicopter and erases your records"Most disaster recovery plans include off-site backup in a location shielded from EM radiation. The situation you describe is not entirely unrealistic...an electromagnetic pulse would have a similar effect within a specific urban area. Depending on the DR plan, a bank could be back up and running in a very short amount of time, even after a coordinated EMP attack on the US.