Savings in an e-Savings account Citi vs HSBC vs ING

[blueMD]

Hello,

I was wondering if I could get some views from people on this thread. I want to know if a Citi direct e-savings account (currently at 4.5% APY) is better than a HSBC direct e-savings account (currently at 5.05%APY) as of today. I know it seems obvious that HSBC is higher but when I read HSBC's FAQ section it said that the interest is non-compounded.... in other words, (if I interpret this correctly) is that they only add interest to my principle.

I'd really appreciate if I can get some input. Thanks!

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[StrengthDoc]

Can you do a couple of things?

1. Post the links to the specific areas you pulled the information.

2. Make sure those rates are actually APY and not just the current rate.

If you can, I will try to plug in the compounding and figure true yield.

 

[blueMD]

i made a mistake quoting citibank esavings.. it's actually 4.25% APY according to their own website but interest is compounded daily
https://web.da-us.citibank.com/cgi-...ail.jsp?BS_Id=CurrentRates&BV_UseBVCookie=yes

go to http://direct.citibank.com/CBOL/06/...5&ProspectID=3480EA667D594E6FBA2ED85950305915
then click FAQ and then question 7 explains their interest calculation method

"Interest is compounded daily and credited to your account on the last business day of your statement cycle."

HSBC direct interest calculation is unclear...
according to one website at http://www.consumerismcommentary.com/category/hsbc-direct/
HSBC "accrue interest daily and compound monthly"
whatever that means... but the APY states 5.05%

 

[VuDOo]

I have an account through ING and have been very satisfied with them. Their current savings APY is 4.50% and their checking APY is 4.00%.


From the ING website:

How do you calculate the interest on my account?
Interest on your savings account is accrued daily, compounded monthly and credited to your available balance at the end of each month.

 

[etf]

look, unless you have like a totally ridiculous amount of money sitting in savings (which you probably shouldn't anyway), the difference between 4.5 and 5 is negligible. use whatever is most convenient - i keep my savings in my fidelity core account, which probably pays a lower yield than both of those options.

 

[Bobblehead]

I like Emigrant Direct at 5.05% APY which you can link to your primary checking account. Interest is compounded monthly. If you have 6 months of living expenses saved up as commonly recommended that can add up after a while. EmigrantDirect is a savings account so it's FDIC insured. You're limited on the number of withdrawals you can make per month. However if you're using it as a place to stash your emergency fund and other things you're saving up for you likely won't need to take out multiple amounts per month anyway.

 

[The White Coat Investor]

I keep less than one month's expenses in my bank checking account. The rest I keep in the money market account at the mutual fund provider I use (Vanguard.) It currently has an SEC Yield of 5.13% which is an APY of something like 5.27%. It is the number one returning money market fund over the last 20 years. You can write something like 6 checks a month out of it, as long as they are at least $250. It has a 3K minimum.

http://www.vanguard.com/jumppage/prime/

https://flagship.vanguard.com/VGApp/hnw/funds/snapshot?FundId=0030&FundIntExt=INT

Good luck with your choice.

 

[Jocomama]

I found the rates on checking of limited value.

I have my checking with Chase - most ATMs where I'm at, no worries about checks, online bill pay, etc. I think I am at 1%

They keep trying to tell me to put my $$ into a linked Money Market account at 4% (better than 1% checking).
Whatever

Like etf says, unless you got lotso cash, it don't matter.

My investements are all over the place; but for day-to-day, I don't care.

What I care about is having to open mail from multiple banks.

THis way, I throw everything away from my mailbox unless it has AMEX, CHASE or FIDELITY (or my tenant checks)
Hell, I even throw away my HSBC/WAMU mortgage stuff without opening, cuz' my online bill pay is set, and I can log in when I want to see what's up.

Being able to toss 90% of my mail into the bin give me peace of mind.
Worrying that I will make $100 - $400 more per year with a 5% Citi is not worth it. Just another password, checking rules and mail.

Hope that helps.

PS - etf's reply sums it up

Hello,

I was wondering if I could get some views from people on this thread. I want to know if a Citi direct e-savings account (currently at 4.5% APY) is better than a HSBC direct e-savings account (currently at 5.05%APY) as of today. I know it seems obvious that HSBC is higher but when I read HSBC's FAQ section it said that the interest is non-compounded.... in other words, (if I interpret this correctly) is that they only add interest to my principle.

I'd really appreciate if I can get some input. Thanks!

 

[Doctor Bagel]

Sure you don't make a ton of money, but I made all of $10 the last year I had all my savings in a Wells Fargo account and have made at least $100/year with ING savings. It's not huge, but it's essentially free money. Also, for the students we do have a lot of money in cash for the first part of each term because we get financial aid disbursements only 2 to 3 times a year so it makes sense to maximize that advantage by getting a higher interest rate on your savings.

Also, adding that ING checking has all the advantages mentioned above and yet still has 4% interest. Free billpay, several local ATMs (including all Targets), the easy ability to send checks online, and for now I'm getting 1% cash back on every signature based debit card purchase. Not great, but that equals the percentage I get back on non-preferred purchases on my other credit cards.

 

[IceMan0824]

http://www.bankrate.com/brm/rate/mmmf_highratehome.asp?web=brm&params=US,416&prodtype=chksav&market=416&product=33&state=US&sort=2

If it's APY you're after, then I will check out that site. I personally keep my emergency fund in a GMAC MMA (recently transfered from ING).

 

[AggieJohn]

Another vote for ING here.

I switched a little while back to an ING savings account. Simple to use and hassle free.

 

[johnstoner]

I use amtrustdirect which offers 5.36% interest and I also have etrade banking that has 5.05 percent but a very good interface and website. check those out as well.