For several years we have used a Capitol One Direct savings account to stash money for emergencies and other irregular expenditures. We opened the account through Costco because of the 0.24% interest premium. All that is coming to an end. Capital One has acquired ING Direct and, as of June 1, 2012, has ended its relationship with Costco. The interest rate offered exclusively to Costco members is ending at the end of 2012. I do not believe that we will maintain this account after that, unless ING Direct upgrades its account offerings.
I use several resources to search for online savings accounts, including Bankrate.com and Money-Rates.com. I have tried the so-called rate auctions at MoneyAisle.com but have not been impressed with the outcomes.
The two accounts that currently look promising are from Barclays (1.00%) and TIAA-Direct (1.25%). I was very impressed (viewing a demo video) at how easy it is to open an account at Barclays. No paperwork or test deposits required. I believe that the TIAA account will also be easy to open.
We still have a token amount of money at Ally Bank but I will not use them again for anything significant. Among other issues, not once but twice they suspended access to our money because – get this – it had been so long since we tried to access our money. (“Long” being 6 months.) Crazyness.
Do any of you have a recommendation for an online savings account to replace Capitol One/ING Direct?