Hi Everyone,

First time poster.

I have been doing 2 days worth of research thus far trying to find the "right" online savings account that offers high interest rates.

Thing is, I am not going to be one of those people that transfers their entire balance everytime an online banks interest rate goes up. So, with that said, I am more focused on knowing I am getting a "solid" interest rate, but the signup process will be smooth, customer service will be good, and I won't get dinged with any hidden fees, etc...

Thus far, INGDirect, though the rate is only 3.4%, seems to have a positive following across many forums. Others with higher rates (HSBC, IGO, Emigrant) seem to have concerns when it comes to transferring money, etc...

With INGDirect, if a real emergency arises...will I be able to pull money out in a short period of time?

With all that said, I "am" a financial newbie and want to make sure I pick the best route as I begin building my emergency fund, which resides at 0% right now

What online savings modules would you recommend for me, and why?

Thanks Everyone

Ing has fallen well behind in terms of rates. I'd try Etrade Complete Savings - they have an excellent transfer system, and have remained among the leaders in rates. They are an established company that isnt going anywhere, but they cant afford to loose deposits which requires them to maintain a higher rate.

Countrywide has consistantly been at the top as well, but being acquired by BofA may change that in the future.

Also, what about GMAC...even if a $500 minimum is required (I think)?

Two days worth of research? Just pick one. Anything's better than 0%! No bank is perfect. One person loves Bank A, the other person hates them. There are plenty of online banks w/$1 minimum deposit, no fees. Just pick one. Why should we start yet another FWF discussion thread on why I recommend / abhor Bank XYZ? Just pick one.

1. Because I am anal and want to do the right thing the first time.
2. I trust peoples opinions on this forum because there is a high probability those on this board are financially smarter than I am
3. I dont' want to "pick one", such as one with a high interest rate, only to continue doing more research where I find out I am getting screwed.

If there is a particular online bank that is consistently considered "really good", I would prefer to lean in that direction then one who has great marketing and a high interest rate plastered on their site.

financialnewbie27 said:So if hypothetically I needed to transfer $5,000 out of an etrade online savings because of an emergency, how long would it take to get that money into my checking account (at another bank)?

Thanks

Go here. Refining search in thread to "ACH" and it looks like 24 hours. Might depend on your bank. YMMV.

It is next day provided you initiate it before the cutoff time. Don't expect it to be in your bank account the next morning if you initiate at 9pm.

financialnewbie27 said:So if hypothetically I needed to transfer $5,000 out of an etrade online savings because of an emergency, how long would it take to get that money into my checking account (at another bank)?

Thanks

Why not have the checking account at the same bank as well! Etrade has a checking account that give 3.25% APY for balances over $5000. Money transferred will be available instantly. Don't believe everything you read on 'em internets. ETrade bank is in fine shape. I have gone the entire route through BofA, Citi, HSBC, ING Direct and find ETrade way better in terms of convenience and customer service. Heck, they even refund ATM fees for any bank's ATM you use.

For the fine print go to https://us.etrade.com/e/t/banking/checking

And yeah, quit thinking so much.

Thanks to everyone on this thread for their advice...I think going with E-Trade will be my best bet.

Keep in mind the FDIC insured limit of $100k. I am pretty sure you are not gonna put that much into a savings account... this is just an FYI. Search for FDIC insurance if you don't know what I am talking about.