Mistakes were made

New York City meets Munich


January 22nd, 2007 · No Comments · Money, Reviews

These days, if you are not getting at least 5% on your savings, you’re a sucker. For some time now we’ve split our savings among two of the big Internet savings banks: Emigrant Direct and HSBC.

Our first was Emigrant Direct. When we opened our account, their web site was pretty spartan, but really, what do you need from a savings account other than a way to get information, and to move money in and out? Since then, they’ve upgraded the site, added extra security, and made it less ugly.

We opened up another account at HSBC not too long after. The HSBC site is very polished, and offers integration with HSBC retail and regular online banking. (Emigrant doesn’t offer this. Emigrant Direct is handled separately from Emigrant’s other banking.) HSBC’s site has some annoying security features that are probably sensible, but they can be a little irritating at times.

Both banks have basically matched each other’s interest rate within .1% for some time now. Currently they both offer 5.05% APY. Keep in mind these are both FDIC insured savings accounts, not CDs or money market accounts. You can transfer money in and out at any time, and it’s insured up to $100,000.

One thing we’ve noticed is Emigrant Direct is much faster at processing transfers. HSBC will often take a full 3 business days to credit our account on incoming transfers. Emigrant Direct credits incoming money within a day, and generally handles transfers out faster than HSBC. Unless you are an HSBC customer, I’d lean slightly towards Emigrant Direct.

If you want a higher return, you’ll need to either take on more risk with other investments or surrender liquidity with a CD. But for a highly liquid, convenient savings with a good return, these online savings accounts work very well for putting your cash reserves to good use.

No Comments so far ↓

Like gas stations in rural Texas after 10 pm, comments are closed.