Posted by: Lauren Young on March 30, 2006
I recently wrote a story about Citibank’s new online high-yield savings account, which has an annual percentage yield (APY) of 4.5%. What sets this e-Savings account apart from other high-yielding online savings accounts is that you have to link it with a Citibank checking account.
A look at Bankrate.com shows at least 10 banks offering money market and savings accounts with an APY above 4.5%. You can find the list here.
Call me old-fashioned, but I have yet to make a big leap to online banking. While I frequently check my balance and tranfer money online, my company’s credit union just started offering free online bill pay.
I know why the banks want us all to bank online—it cuts down on tellers and keeps the cost of doing business low. So it makes sense that they draw folks in with high-yielding products. But plenty of people I know are still leary of setting up online banking accounts.
Are there any customers out there from ING, HSBC, or any of the other banks with high-yielding savings accounts?
If so, why do you stash your cash online?