Searching for a New Online Savings Account

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 have already started researching other accounts. My primary criteria are (1) interest rates in the highest tier (currently 1.0% – 1.25%) and (2) ease of use online, particularly with outside transfers. I give credit to Capitol One for how easy it is to transfer funds between our savings account and our rewards checking account (at a different bank).

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?

 


Comments

  1. Barbara Daugherty says

    Ally put a hold on your accounts because you weren’t using them? I have quite a few accounts at Ally with a fair amount of $$ in them … this is the first I’ve ever heard of that!!! I guess I need to look into it. Thanks for the tip.

  2. Neo says

    You might try MyBankTracker.com to check the ratings of the banks you are looking at. I don’t think that Barclays got a very good review. Just thought It would be an extra tool for you to try. BTW I like the info that you post, and I have been following you for some time now. Thanks Neo

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