Virtual Piggy Banks

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?

Reader Comments

Charles

April 2, 2006 11:47 AM

On line banking means no service charges, access anytime by debit card or wire transfer no matter where in the world I may go.

george

April 7, 2006 8:12 AM

I've been an on-line customer of ING for more than a year now, and until recently have had no complaints...but now with interest rates peaking at other on-line bankers, I'm about to switch from the ING 4.5% banks.

Cheryl Washington

February 26, 2009 2:07 PM

I love online banking, went with Venture Bank Direct and have been very satisfied. It suits my lifestyle better, as I can access my accounts anytime any where. My neighborhood bank was never open when I was available to do my banking.

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About

Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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