I guess the real question is will they stay competitive, and only time will answer that.

sandy05 said:Wondering what'd happen to poor emigrant if they don't increase their rates.

I think for most people there is no way ED can compete based on the fact your money collects no interest for 3 days each way because of the way ACH works.

So even if ED would pay 25 basis points more over BOA for it to make sense on 25 basis points it would take you about 70 days to recover the lost interest cause by ACH system each way. So unless your planing on leaving your money for over 140 days at ED or any other online savings account then you are really just better off leaving it locally in a HYSA.

Remember if the spread is less it will take longer to recover the lost interest caused by the ACH system. And if the spread was larger it would take less time to recover the lost interest.

I think over the next year or two lots of the online banks are going to be forced to closed. When they all opened up there doors most of the national banks just did not offer HYSA. Now with alot of them offering the spread between online banks and B&M bank is so small that it almost makes no sense to move money back and forth between them as the loss caused the ACH system in most cases is more than the interest gained by the higher rates they offer.

Remember when ING first came out there was no local high yeild no min accounts arround. NO E-savings, No HSBC online Savings, No Wamu 5% online savings.

Your choice was either getting a money market account which required $25K,$50K or $100K to even come close to ING or you get almost no interest. So spread was 100 basis points or more. Today this is just not true. You will be lucky if you find an online high yeild savings account who yeilds 10-25 basis points more than a local savings accounts.

Just my 2 cents people might keep there money for years in there savings accounts without touching it so for this type of person I guess 10-25 basis could make sense. For most people who dont keep money in savings for years you are almost better off opening an account at a local bank which offers a high yeild savings/checking account combo and not even bothering ACH any funds to online savings accounts.

Sorry I dont have ED online account. I have HSBC and ING and USAA.

I know with ING you loose 2 days incoming and 2-3 day out or atleast that is how it works with Citibank might differ between banks.HSBC is 3 days both ways and USAA you loss 2-3 days out bound but none incoming.

Either way 25 basis point spread if you lost interest 1 day round trip is still 24 days to make up that lost interest.

So maybe then online banks will be forced to use next day ACH transfers then to minimize those lost days of interest just to compete with B&M banks.

As far as ED like I said I dont have ED account but if with ED you only lose 1 day of interest round trip then I assume they are exception to the rule and not the norm as with most online banks you tend to loose a min of 3 days round trip and more with other online banks.

frootmall and how about outbound? Or are HSBC and ING and USAA just the exception to the rule?

I know with Fedility you also get credit same day and money is debited always next day but when you transfer money out it also debited next day and post to my bank account always 2-3 days laters.

I thought the reason Fidelity gave you instant access was it was a brokerage house and they wanted you to invest the money so they could make commsion.

frootmall Maybe it varies bank to bank? Or maybe Citibank is placing holds on ACH transfers in? Or maybe your bank uses the same ACH provider so it all done internal so your ACH posts faster? Would be interesting to find out if people have same delay that I do with differnt banks or this delay just exists with Citibank and many online banks in an effort to make using online savings accounts with Citibank checking accounts just not worthwhile.

If you look at this thread AMTrust Direct e-Money Market 5.26% APY people claim you lose 2 days of interest on way out but none on the way in.

So maybe better number to use 2-3 days round trip I guess as most banks are not as sleezy as HSBC. Either way 2-3 days means 50-70 days if you found a spread differnce of 25 basis points. If that spread was less would take longer to recoup that interest. Almost not worthwhile in my option.

Has anyone successfully opened an account through the link at the AAA website?

Being both a BOA and ED customer, my experience makes me believe ED's rate will stay above average while BOA will trend down to other B&M banks. This may be different for at least a little while. It just depends on how long of a commitment AAA had with MBNA.

any one know if they do hard pull or not?
have BOA or not have BOA, same?
thanks

Xeon852 said:dolmar: Can you use this account as a billpay source?

No on there web page when you goto bill pay and select account from the pull down menu only my MRA shows up.But the account shows up on the main login screen with correct balance.

Btw when they added the account to my ATM Quicken saw the account first time I did an update. And Quicken says I cant activate Bill Pay on this account please contact my bank.

So I guess you cant use bill pay directly from this account. I dont care personally I will just transfer funds from this account 1 day prior to my MRA account which earns 4.49% state income tax exempt as I have the treasury sweep option on my MRA checking account.

Anyone keeping over $50K in this savings account might as well ask to have there checking account switched over to MRA as this account also includes free Quicken Bill Pay and pay a good rate compared to most checking accounts arounds. And the money in your AAA MMA will counts towards the balance requirements of the MRA.

Or maybe it going to take a couple of days to cycle into the system correctly after it been linked and allow me to use the Bill pay but as or right now I cant use this account with BOA bill pay tho.


Btw I have no idea how long BOA will continue to pay this high rate either. But I figure as long as they do it I am keeping my cash in there MMA over Citi or any other online savings account It is really a no brainer in my option.

Ajulius at $10K + tho you getting 25 basis points higher than MONEY FUND REPORT average and with $50K you getting 50 basis points over the average. I dont think there even is 50 basis points spread between MONEY FUND REPORT average and the highest yeilding account in that report but please fell free to correct me if I am wrong and please show me 1 fund in the average paying 50 basis points higher that is included in the MONEY FUND REPORT.

1 last thing Ajulius only reason people did not like the MBNA accounts before was MBNA did not support any online access. I used other online savings account to push the money into this account and if I did not have free ACH push from other online accounts I would have been forced to mail in deposits. I think this was main reason people did not like the MBNA MMA.

Now that they are full BOA account with full access at the branch level etc. Making deposits and withdrawls are super easy. No more having to send it from local bank to online bank which supported ACH pushing to MBNA or mailing them checks. Now you just walk into BOA and you can make deposits or withdraw directly from this account. I think that is a big plus over how the old MBNA accounts worked.

Ajulius said "But also this would be dependent upon tax considerations as well" So are you telling us keeping in 2 different accounts has some tax benfits now? Otherwise I dont see the points in sayings "But also this would be dependent upon tax considerations as well" then going on say keeping you money in HSBC/AMTrust Direct is better for you as the tax considerations are identical for all taxable accounts. The rate any taxable account pays is irrelevent and keeping your money in 1 bank vs 2 banks is also irrelevent.

NyGiantFan said:I got hard.
Yes, that rate got me excited also.


I got the same E-Mail stating they got my application, will now wait and see
Application Decision Notification
Dear SCOTT XXX:

It's our pleasure to have you as a customer, and we look forward to serving your banking needs in the years to come. We've received your online account application for the following account(s):

Money Market Savings


If you have questions about this application(s), please call us at 1-888-383-7500, or Contact Us.

If you have any further questions, please call customer service at 1-800-900-9000.

Thank you for giving us the opportunity to serve your banking needs.

This is an automatic message - please do not reply or forward.