Online Savings Account
May 4, 2007 by PF Journal
Filed under Banking & Loans
Putting your money into an online savings account seems risky for the uneducated, but there is really no good reason these days to miss the competetive interest rates that online banks are offering. I recently opened up an account at Emigrant Direct and so far my experience has been very positive.
Although the interest rate has gone down a touch since I opened the account (from 5.15% APY to 5.05%) it still far surpasses the options I can obtain locally. My local credit union only give my .75% APY and most banks are lower than that unless you open a large account. Even a balance of higher than $100,000 will only get you about 4.0% APY at most banks now, and Emigrant Direct does not have a minimum balance requirement.
I was able to open and fund my account in a few days and began earning interest straight away. Although I am pretty happy with Emigrant’s service and interest rates, I have been thinking about moving some other money to another online bank. Currently E-loan is offering a 5.50% APY though they do require a $5,000 minimum. There are several others, however, that offer a better rate than Emigrant with a low minimum balance. You can get the most current information on bankrate.com.
Related posts:
No Comments