New bank account

[msmama]

I'm looking to open a new bank account - probably online - to save for things like Christmas, Disney trips, etc.

Now I just keep it all in my regular checking/savings, but I'm interested in actually keeping the money separate for now. I do save a fair amount every month, but it gets rolled in with the rest of the money and then I don't know what's for what anymore.

So, I'm looking for something with a high (relatively) interest rate. The only deposits I will probably make will be transfers from my already existing checking account.

I will probably empty the account (transfer back into regular checking) when actually paying for the trip (to pay off my rewards cc's that the trip will be booked with). Basically, I just want somewhere to store a chunk of money with as few fees as possible. I want to add some to it every month, but then probably withdraw most/all of it at some point.

I suppose I could open up another account with my regular bank, but I've heard that online banks sometimes have good interest rates.

Any positive or negative experiences?

I've checked this out: http://www.nerdwallet.com/blog/banking/nerdwallets-top-online-checking-accounts/ but I guess I'm looking for more personal experiences.

Thanks!

 

[havaneselover]

I'm looking to open a new bank account - probably online - to save for things like Christmas, Disney trips, etc. Now I just keep it all in my regular checking/savings, but I'm interested in actually keeping the money separate for now. I do save a fair amount every month, but it gets rolled in with the rest of the money and then I don't know what's for what anymore. So, I'm looking for something with a high (relatively) interest rate. The only deposits I will probably make will be transfers from my already existing checking account. I will probably empty the account (transfer back into regular checking) when actually paying for the trip (to pay off my rewards cc's that the trip will be booked with). Basically, I just want somewhere to store a chunk of money with as few fees as possible. I want to add some to it every month, but then probably withdraw most/all of it at some point. I suppose I could open up another account with my regular bank, but I've heard that online banks sometimes have good interest rates. Any positive or negative experiences? I've checked this out: http://www.nerdwallet.com/blog/banking/nerdwallets-top-online-checking-accounts/ but I guess I'm looking for more personal experiences. Thanks!

Capital one 360 is great. I (and my children) have six accounts with them. They offer bonuses when you open accounts from time to time. They have one at the beginning of July and maybe one at thanksgiving. I have a c1 credit card too and I saw a $50 offer on there.

 

[Marionnette]

I'm looking to open a new bank account - probably online - to save for things like Christmas, Disney trips, etc.

Now I just keep it all in my regular checking/savings, but I'm interested in actually keeping the money separate for now. I do save a fair amount every month, but it gets rolled in with the rest of the money and then I don't know what's for what anymore.

So, I'm looking for something with a high (relatively) interest rate. The only deposits I will probably make will be transfers from my already existing checking account.

I will probably empty the account (transfer back into regular checking) when actually paying for the trip (to pay off my rewards cc's that the trip will be booked with). Basically, I just want somewhere to store a chunk of money with as few fees as possible. I want to add some to it every month, but then probably withdraw most/all of it at some point.

I suppose I could open up another account with my regular bank, but I've heard that online banks sometimes have good interest rates.

Any positive or negative experiences?

I've checked this out: http://www.nerdwallet.com/blog/banking/nerdwallets-top-online-checking-accounts/ but I guess I'm looking for more personal experiences.

Thanks!

High interest rates on regular savings accounts just aren't going to happen. Even the CapitalOne360 account, that the PP mentioned, doesn't have a very high APR.

Instead of looking for something with a high rate of return, try looking for a bank that has friendly terms such as:

• No minimum deposit.
• No requirement for direct deposit.
• No (or low) minimum balance required.
• Digital deposits using your smartphone.
• Possible sign up bonus for opening an account and perform # of transactions within a set time frame.

I've had an account at CapitalOne from back when they were ING. I also signed the kids up and got bonuses for their accounts. I've always thought that they were an easy bank to deal with. My only complaint would be the amount of time that it takes for money to become "available" when you transfer it in from another bank. In this digital age, it should not take almost a week for money to be "available" and I suspect that is how they make their money off of small accounts. But since the money that I put into those accounts is meant for saving and not immediate spending, it's only a small peeve.

 

[OrangeBirdGirl]

Other then CDs at my credit union, all my savings accounts are online with Capital One 360 as well. I have been with them for probably 10 years as I started when they were Ing.

Their rates have been pretty stead at 0.75% for a couple years. I know that isn't great but compared to my local bank that rate is high. They are very similar to Ally and I believe Ally has a tad higher rate. It's just not worth it for me to go through the hassle of changing banks. Capital One 360 is so easy to deal with, I just transfer money between my checking account and their bank. You could also setup reoccurring transfers. I pay no fees.

I have 5 savings accounts there. One of them is my vacation account like you plan on doing.

 

[jedijill]

I agree with using Capitalone360. I've never had it take a full week to transfer..usually a couple of business days.

I got an offer in the mail for another bank with an interest rate of 1% but it required $50,000 to open. If I had $50K, I would be putting it in something that makes more!


Jill in CO

 

[bjscheel]

I do Capital One 360 too. I have two savings accounts there- one for vacation and one for saving. I put money in throughout the year (a certain amount every time I get paid to vacation account, and a certain amount every week to savings account). I really like to have the money earmarked. I wouldn't feel right about taking money out for vacation if it wasn't labeled as such!

For a Disney vacation, I put it on the Disney Visa and pay out my regular funds a bit each month until the 0% is up. Then I withdraw what I need from my vacation account to pay it off. That way I figure a little bit more is left in the vacation account to get a start on the next vacation!

I was looking back and when I opened the account in 2004 or 2005 the interest rate was 4% or better! Too bad that didn't last.

 

[havaneselover]

I do Capital One 360 too. I have two savings accounts there- one for vacation and one for saving. I put money in throughout the year (a certain amount every time I get paid to vacation account, and a certain amount every week to savings account). I really like to have the money earmarked. I wouldn't feel right about taking money out for vacation if it wasn't labeled as such! For a Disney vacation, I put it on the Disney Visa and pay out my regular funds a bit each month until the 0% is up. Then I withdraw what I need from my vacation account to pay it off. That way I figure a little bit more is left in the vacation account to get a start on the next vacation! I was looking back and when I opened the account in 2004 or 2005 the interest rate was 4% or better! Too bad that didn't last.

Yeah, 0.75% isn't great, but I am enjoying a 3.49% mortgage rate. So while I'd love to earn more on savings those of us who owe money have benefited from these historically low rates. Just trying to look for the positive

 

[Angrose]

I also have a few Capital One 360 accounts, but I also just opened a Discover checking acct. It only required $25 to open, there's no fees, and you get a $50 bonus. You have to be an existing Discover customer though.

 

[disney1990]

Do you have a local credit union? I left Suntrust about 2 months ago. My money market account at Suntrust was earning about 12 cents a month. The new account earned $1.70 last month.

 

[ellochka]

Agree with above posters. Online banks are convenient, and I like the ability to have savings for different purposes separated, but the interest rates are paltry. I have had two EmigrantDirect accounts and one CapitalOne for different purposes. CapitalOne is better, I think.

 

[j's m]

SFGI Direct online is the one we use, it's a division of Summit Community Bank. Currently the savings account is 1.01% which is the only product they offer. We transferred our Cap One 360 accounts to them years ago and are very happy with them.

 

[Disneyluv111]

I used to have 5 bank accounts. One with Chase, a few with Bank of America, etc..
To me it was too much hassle and too much to take care of. I closed them all down and now, I have 2 accounts (not including my investment, that's different).
One spending account and one account for everything else such as singing funds, savings, Christmas, gifts, etc.
I use YNAB to budget and set categories, so I know which amount and how much goes where. It's much easier.
Have you tried doing that?

 

[Mommee]

Another capital one 360 user (10 years now) I have auto transfers set up for my short-term savings (things like the quarterly water bill) as well as the kids have savings accounts. Our current credit union allows sub-savings accounts so I've thought of moving everything back to there, but A) I'm lazy and B) I worry about having all my money in one bank.

I have a debit card for the 360 account and it's instantaneous to transfer money from one of the savings accounts over to the debit account.

 

[ruadisneyfan2]

High interest rates on regular savings accounts just aren't going to happen. Even the CapitalOne360 account, that the PP mentioned, doesn't have a very high APR.

Instead of looking for something with a high rate of return, try looking for a bank that has friendly terms such as:

• No minimum deposit.
• No requirement for direct deposit.
• No (or low) minimum balance required.
• Digital deposits using your smartphone.
• Possible sign up bonus for opening an account and perform # of transactions within a set time frame.

I've had an account at CapitalOne from back when they were ING. I also signed the kids up and got bonuses for their accounts. I've always thought that they were an easy bank to deal with. My only complaint would be the amount of time that it takes for money to become "available" when you transfer it in from another bank. In this digital age, it should not take almost a week for money to be "available" and I suspect that is how they make their money off of small accounts. But since the money that I put into those accounts is meant for saving and not immediate spending, it's only a small peeve.

It's not a lack of technology on their part that makes deposits take so long to become a available. It's because savings are not meant for immediate withdrawal. We have had accounts with them also since they were ING and when they offered a $50 bonus to open a checking acct I jumped on it for dh and I. I figured for $100 it's worth it to try out and I had every intention of closing it after getting the bonus. Well now I like having an extra checking acct with no fees or minimums. It even earns a miniscule amount of interest.
Anyway my whole point is that when you transfer to their checking account the $ is available the day after you schedule a deposit. It's only for savings accts that have a 7-day hold on funds.

 

[Marionnette]

It's not a lack of technology on their part that makes deposits take so long to become a available. It's because savings are not meant for immediate withdrawal. We have had accounts with them also since they were ING and when they offered a $50 bonus to open a checking acct I jumped on it for dh and I. I figured for $100 it's worth it to try out and I had every intention of closing it after getting the bonus. Well now I like having an extra checking acct with no fees or minimums. It even earns a miniscule amount of interest.
Anyway my whole point is that when you transfer to their checking account the $ is available the day after you schedule a deposit. It's only for savings accts that have a 7-day hold on funds.

Umm...I was totally aware of that it's not due to a lack of technology. I know why they do the hold, I just don't like it. A deposit made to a savings account at a local branch would be available the next day if you needed it. CapitalOne places a hold on the funds even though they have the money. That's how they make the money for paying interest. They loan your money out (the money you can't touch for a week) and then charge a higher interest rate to the people they make loans to.

 

[ruadisneyfan2]

Umm...I was totally aware of that it's not due to a lack of technology. I know why they do the hold, I just don't like it. A deposit made to a savings account at a local branch would be available the next day if you needed it. CapitalOne places a hold on the funds even though they have the money. That's how they make the money for paying interest. They loan your money out (the money you can't touch for a week) and then charge a higher interest rate to the people they make loans to.

Yes and that's why an account at our local bank earns .05% instead of .75.
At least they're very clear about it. If I'm going to need the money in 3 or 4 days, I dont deposit it with them.

 

[hhartill]

Yes and that's why an account at our local bank earns .05% instead of .75.
At least they're very clear about it. If I'm going to need the money in 3 or 4 days, I dont deposit it with them.

To avoid the hold on the funds I deposit into my 360 checking, then move to savings when it's "available", this way does require a few more clicks but for some reason I don't like it when my account has "holds".

 

[Marionnette]

Yes and that's why an account at our local bank earns .05% instead of .75.
At least they're very clear about it. If I'm going to need the money in 3 or 4 days, I dont deposit it with them.

And as I said twice, I understand WHY they do it. That doesn't mean that I have to LIKE it.

 

[ruadisneyfan2]

And as I said twice, I understand WHY they do it. That doesn't mean that I have to LIKE it.

OK. Sorry I bothered you.

 

[RitaE]

I think my GE Capital Retail (just changed their name to synchrony or something) is at around .9% Whooooo Wheeeeee. SmartPiggy (marketing name for some bank in the south) pays around 1% I believe and they have some sort of setting Goals/Gift Card Reward program I see people talk about often.