Comments on: Should I Bother With a Online High Interest Savings Account?

By: Studenomist

Studenomist — Tue, 24 Nov 2009 06:06:26 +0000

@Edwin There is nothing wrong with that if you have no issues with your current financial setup. I’m not here to tell people what to do, I just share my thoughts and look for feedback.

@Chris I totally agree with that one. I’m forced to plan my nights out ahead of time or else I won’t have the fund available. Believe me that is very important when there is a party going on almost every night in college.

By: Chris

Chris — Tue, 24 Nov 2009 05:41:56 +0000

The inconvenience of having to wait several days for money to go from my B&M bank to ING Direct and vice versa is a good thing; it forces me to plan ahead of time for expenses. That’s probably the biggest draw for me, since rates aren’t 4% any longer.

By: Edwin

Edwin — Tue, 24 Nov 2009 00:13:42 +0000

The one big (and admittedly, arbitrary) holdup I have with even looking for an online savings account is that having all my banking done through the same place is such a convenience and I just don’t look forward to having to visit a new site and remember another password anytime I want to check my accounts.

By: Credit Card Chaser

Credit Card Chaser — Mon, 23 Nov 2009 22:43:57 +0000

It is worth pointing out that if someone has any credit card debt then they should first pay off the debt and then consider an online savings account.

By: Studenomist

Studenomist — Mon, 23 Nov 2009 20:39:54 +0000

Sorry guys this was only the second post of my investing section. This is by no means an investment blog nor do I plan on giving your the investment advice “of a life time.”

The lower interest rates has its pros and cons. Definitely a good time to lock in a low interest rate on your mortgage. Not so good of a time to watch your money grow in an online savings account.

Just to provide some info on my financial system- I have a certain amount in my online savings account at ING Direct. I also do have X amount invested in securities at the moment. Some in a registered retirement account and some in a simple investment account.

For you gentlemen an online savings account is a very simple financial tool and the math simply does not add up. For many twenty-somethings it is more about the mental aspect than the math. Sure you can argue the interest rate sucks but it’s the barrier of having your money locked away that is beneficial.

By: Financial Samurai

Financial Samurai — Mon, 23 Nov 2009 19:52:56 +0000

Why do you think online savings account rate spreads over traditional bricks and mortar banks have compressed so much? They seem so pitiful now.

BTW, as a student, I’d love to hear your thoughts over on my site on whether a 32% hike in tuition creates a future hoard of fiscal conservatives!

By: Craig

Craig — Mon, 23 Nov 2009 19:32:05 +0000

Online accounts are great for some people. I stick to money market accounts with my bank cause I like having all my bank accounts in one place and the rates are basically the same right now.