ING Direct Orange Savings & ING Direct Electric Checking Account
There is a general trend for banks and financial institutions to move into positioning themselves as online banks. In ING Direct's case, it is a case of being edged out of the competition. A check on its APR rate show a 0.65% lower rate compared to two of its rival banks, HSBC Direct and Etrade Financial for a basic Orange savings account. To add insult to injury, the company is offering 3.25% APR for account balance in excess of $100,000 for its 'advanced' Electric Orange savings account, still at 0.03% lower than what HSBC Direct is paying, for a minimum balance of 1 cent. However, APR can fluctuates and this may no longer be applicable days later.
While its more complicated account structure does not help to lure savers, its member-gets-member scheme certainly does. For a minimum of $250 deposit, customers will be rewarded with a one time $25 credit and an additional $10 for referring new customers that will in turn get rewarded for their deposit. ING Direct has seen better days when they used to fight alongside big online banks with competitive rates, and using a scheme like this can only reinforce the idea that they can no longer compete head on however profitable the scheme may be. From a consumer's perspective, this arrangement can be advantageous and a strong incentive to sign up, although its long term viability is highly questionable.
Everything else about ING Direct's features matches the standard of other banks on paper. Its Orange savings account yield a 2.75% APR with no minimum balance, fees and service charge, and your savings are insured by FDIC up to a maximum amount of $250,000 per person.
ING Direct has reserved their best features for their premium Electric Orange customers, although facility like their Mastercard debit card that allow for purchases and easy ATM withdrawals from various banks can greatly benefit Orange members too. The sad thing about this is unless you have more than $100,000 with them, being an Electric Orange member is not a clever option unless you want to be earning less interest. For those who have the dosh, ING Direct offer some special features such as Electric Checks and automatic overdraft facility.
Overall, the account options can be confusing and not as appealing besides not hitting the bull's eye on what online bank customers really want. Even its special features are additional conveniences that one easily can do without. Signing up for ING Direct is relatively easier and faster than most online banks.
Originally posted 2008-10-12 10:33:52.
HSBC Online Savings Account Review
HSBC is relatively new to the online banking world and its brick and mortar banks are only in a few select regions across the United States. However, if you've no access to a real world HSBC bank, you can always take advantage of their online savings account. The HSBC online savings account offers one of the highest paying savings accounts, with no fees or minimums.
The HSBC savings account works alot like other online savings accounts. Of course, the main attraction is the Annual Percentage Yield, which is higher than any real world bank can offer you. Because there are no fees for service or minimum balance requirements, you can open an account with as little as $1. If you decide to open an online savings account with HSBC, you'll keep your existing checking account with your current bank and simply link your HSBC account to it. You can move money back and forth by logging in to your HSBC account and requesting a transfer. These transfers are free on HSBC's side, but you should always check with your bank and make sure they won't be charging you any fees from their side.
Because the online savings account gives you a decent APY, you'll be making more money than you realize. HSBC also sends you an ATM card, which makes it easier to get the cast you need fast and keep your daily spending money in their account and not a lower yield account. This is the one feature where HSBC has ING Direct beaten. In addition to their savings account services, you can also opening a traditional HSBC checking account. By doing this, you can transfer the money from your HSBC savings to your HSBC checking account instantly and save a ton of time, as the transfers are instant.
HSBCs checking account isn't free and may have fees associated with it, but HSBC will consider all of your balances, including your mortgage and credit card balances when they calculate how much you have with them. This makes it easy to have an interest earning checking account which has no monthly fees. Because you can link the checking account with your HSBC savings account, you'll have two accounts which can earn you decent rates, depending on your outstanding balances.
Opening an account with HSBC is quick and painless. You'll need supply them with all of your personal information you would typically supply a bank with and wait for them to make test transactions to your linked account. These transactions will occur over a period of days and you'll need to confirm them before your account can be opened. The process is pretty quick and your initial deposit into the HSBC Online Savings account can be earning you interest within a week. Security around HSBC is pretty tight, as any changes you make to your online account will need to be confirmed by you in person, either through the mail or over the phone. This helps provide an extra layer of comfort, especially if you're not completely trusting in the world of online banking.
Originally posted 2008-09-28 16:30:34.
WaMu Online Banking
WaMu is offering free checking and a new savings account with a new 4.00% Annual Percentage Yield (as of 9/08), so combining these two is a great option for those who have WaMu branches near them. You can get the convienence of your local branch coupled with ATM withdrawals and deposits, plus you'll receive the high interest rates and free online fund transfers of your online banking account. For comparison, this is what you get with WaMu's free checking account.
- No minimum balance or direct deposit requirements
- Free basic checks for life
- No ATM Fees
- Free Overdraft
WaMu Online Savings Account:
- Competitive 4.00% APY on all balances
- Rate is only available online
- No minimum balance requirements
- Instant Transfer Between Checking and Savings Account
You can open up your free WaMu checking account either at a local branch or online, but you can only open the savings account online. However the set up time for these accounts is really quickly, with the online savings account being set up in less than 5 minutes. Because funds transfer instantly from one account to the other, you can always have your money in the highest yield account and take out what you need, when you need it.
Overall, since WaMu lacks fees from all of its services, it's a great way to spend and save money, especially since all of your checks are free for the duration of your account. You can deposit any checks directly into your savings account at any ATM, which helps you maximize your interest. There's no other online bank which allows you to do this. You can also transfer the funds instantly from your savings account to your checking account, with no fees. However, you are limited in the amount of times you can do this in a month, with the limit being six.
The online interface for making transfers and deposits is very easy to use as well. It's simple and intuitive, which makes it easy to use their Online Billpay feature. A new feature which has been added in the past few months is online funds transfer, which lets you link up any external accounts you have by using your routing number and your account number. Transfers done in this way are free both in and out, which makes it very convenient for those who don't have a WaMu checking account but still want to use their high yield savings account features.
WaMu also features unparalleled security to give you the peace of mind you need when dealing with your money online. They have several security features in place which require you to confirm your identity before any major changes are made to your account. You can confirm yourself either via phone or mail, which makes it harder for identity thieves to get your information and use it for nefarious purposes. Customer service is also great, if you ever have a problem with your account, or you need assistance, WaMu's customer service via the website or telephone is fast and curteous in helping you resolve your problems.
Originally posted 2008-09-29 16:39:51.
The Good and the Bad of Online Banking
With the onset of the Internet technology, there are a lot of things that you can take advantage of. You can do your shopping online, do business transactions, and even do your banking. Online banking has set a revolution in how business is done. Not only would you benefit from personal banking but doing your business transactions online proved to be very beneficial too and can save you a lot of time and money. But just like in all things, online banking has its advantages and disadvantages. If you are thinking twice about online banking, here are some pros and cons that you might want to consider.
The Good:
24/7 availability
You can access your bank account online any time of the day, even on holidays. You can check and monitor your transactions with just a few clicks of the mouse even in the wee hours of the morning.
Accessibility
Whenever there is Internet access, you can always check your bank transactions. This is best for business travelers and those who are in far away areas. Such accessibility is very beneficial when in comes to emergencies and you need to access your account.
Speedy transactions
One of the advantages of online banking is that you can save a lot of time. No longer would you have to wait in line for your queue in banks or in ATM machines. Confirmation and execution of your transaction can be done in a matter of second.
Multitasking
Not only can you monitor your bank transactions online, but you can also manage other types of account like IRA, securities and CDs. If you are an investor you can also take advantage of financial tools like stock quotes, rate alerts and other managing programs.
The Bad:
Registration process
If you want to enroll you in online banking, you may have to devote some time doing so. You need to go to your local branch and fill out an application form. You also need to provide them with valid identification cards. Approval may take 3 days to 7 days.
Difficulty in using online banking
If you are not a tech savvy person, you might have a hard time navigating through bank sites and manipulating your bank account online. You need to devote time and some amount of effort in learning how you can bank online efficiently. You can do this by going though the site's FAQ's and tutorials.
Constant bank updates
To cope with web technology, online bank sites would often go through updates that may cause your online banks to be 'under construction' for some time. Because of such updates, you should also learn new features of online banking and get familiar with it.
Security and safety
With the rise of identify theft and unauthorized access of online accounts, a lot of people are in still in doubt if they want to risk their private and financial information. But this issue can easily be solved with proper education and following safety procedure of online banking.
Originally posted 2008-10-06 03:49:13.
WaMu Online Banking
Online banking has enhanced access, management as well as speedy communications for your transaction accounts, so you can pay bills or transfer money at the stroke of a keyboard, other than writing a cheque or visiting a branch.
The WaMu Online Banking will give a full repayment for the amount of any deceitful or illegal transaction that takes place on your account in an online banking session. That means $0 responsibility for fake or unlawful doings on your account.
WaMu’s Responsibility
For any fake or unlawful transaction which has been started during an online banking session at WaMu, it will offer 100% repayment of the transaction sum along with any connected account charges forced by WaMu or lost account interest resultant from such transaction.
Security
Safety through single password verification, like the case in many secure Internet shopping websites, is not measured protected enough for personal online banking applications in a few countries. Essentially there exist 2 different safety methods for online banking.
- The PIN/TAN system where PIN symbolizes a password, used for login as well as TANs symbolizing one-time passwords to validate transactions. TANs can be dispersed in different ways; the most accepted one is to send a record of TANs to online banking user by postal letter. The major protected way of using TANs is to produce them by need using a safety token. These token created TANs depend on the time along with a unique secret, stored in security token; this is known as two-factor authentication or 2FA. Generally online banking with PIN/TAN is done by a web browser with SSL secured links, so that there is no further encryption needed.
- Signature based online banking where all the transactions are encrypted and signed digitally. The Keys for the signature making as well as encryption can be stored on any memory medium or smartcards, depending on concrete execution.
History
The originator for the contemporary home online services was the distance banking services on electronic medium from early 1980s. The word online became well-liked in late 1980s as well as referred to utilization of a keyboard, terminal and TV to access banking system by a telephone wire. ‘Home banking’ might even refer to use of the numeric keypad for sending tones on a telephone line with commands to a bank. Online banking services began in NY in the year 1981 when 4 of city’s foremost banks, Citibank, Chemical as well as Manufacturers Hanover, Chase Manhattan, provided home banking by videotex system. As the commercial breakdown of videotex such banking services did not become popular excluding France where utilization of videotex was subsidized by telecom supplier and the United Kingdom, where Prestel method was referred.
The United Kingdom’s 1st home banking services were founded by Nottingham Building Society in the year 1983. The system utilized was founded on United Kingdom’s Prestel system as well as used a personal computer, like BBC Micro, or the keyboard linked to the phone system as well as TV set. The scheme permitted on-line presentation of statements, bill payments and bank transfers. To make bill payments and bank transfers, written instruction providing details of intended receiver was to be sent to NBS who placed the information on the Home link system. Usual recipients were electricity, gas, telephone companies as well as accounts with the other banks. Information of the expenses to be completed was input in NBS system by account holder by Prestel. The cheque was sent by NBS to payee along with a suggestion giving all details of imbursement was sent to account holder.
Originally posted 2008-09-19 13:43:37.
Choosing an Online Bank for your Business
Online banking would do great wonders for your business. Not only would you have the convenience of doing your transactions any time of the day, right in the comfort of your own home, you can also take advantage of the various business programs and investment tools that online banking can offer. You gain access to your bank information 24/7 at any time of the day.
When it comes to choosing the right online bank for your business, you should be able to compare the benefits and advantages that you can get from bank to bank. It would also be a good idea to get a reliable and trusted bank in the industry.
Devote some time and effort in choosing the right online bank suitable for your business. This would allow you to reap the benefits of online banking to the fullest. Some banks would charge minimal fee for online banking while others offer it as an extra service.
Questions you should ask about
When choosing an online bank for your business, ask about whether or not they have a program that is solely dedicate to entrepreneurs and small businesses. If they do have, ask for a list of services that they offer and how much each service would would cost you. Be sure to inquire about transaction fees so you would not be surprised by the time you see your bank bill. Make sure that aware of any additional charges that you may incur such as overdraft fees. Check the addresses of their local branches in your area so you would know how to go to there in case you would have an issue with your online bank account. To save big and get great benefits from your online bank, ask for current promos and discounts for new account holders.
Types of online bank accounts
When choosing an online bank account, it is important to know the different types of account that you can enroll in. Here is a list:
Current account - This account can be used for payments and receipts. It has a low pay interest on late payment and credit card balances.
Readily Access Deposit Account - This can be viewed from your current account and can be monitored any time. You can access this account for your online business transactions.
Time deposit account - If you want your money to gain interest, you can save your money on long term funds such as a time deposit account.
Foreign currency account - If you have a business overseas or you are using foreign currency for trading, this account would work best for you.
Loan account - For those planning to start a business with a loan or would use any type of loan for whatever purpose, a loan account can help you monitor interest and your payment.
Merchant account - This is the best type of bank account for small and big business, whether online or offline. This account type would allow you to accept credit card payments over the Internet.
Originally posted 2008-10-02 03:09:06.
Why Online Banking with HSBC Direct?
A publication dated February 2007 by Kiplinger's Personal Finance magazine rated HSBC Direct (www.hsbcdirect.com) as the best overall online savings account. Among other things that are taken into consideration for this recognition are low $1 minimum balance, quick customer service, an ATM card and a much higher Annual Percentage Yield (APR) typically associated with online banks.
If case you are clueless about what online banks is all about, these are internet based banks that do not have brick and mortar outlets like conventional banks, and they're generally not the same as your local bank with internet banking facilities. As mentioned above, the most attractive aspect of an online bank is its outstandingly high interest rates compared to normal banks, regardless of whether you have a savings account, money market account, checking or Certificate of Deposit (CD). For example, at the time this article was written, HSBC Direct is offering a 3.25% APY for savings account while HSBC regular savings account only yield a pathetic 0.10% a year. If you think this is high, HSBC Direct has been offering up to 5.05% APR during better times. Combine this with its low minimum balance to obtain APY of only $0.01 as compared to $100 for regular savings account, and we've got a winner hands down.
Why the big difference? The public is more savvy about money and are getting smarter about interest rates. When the paltry 0.10% APR stops bringing in savings, bankers are forced to offer higher interest rates to lure savers. Since online banking runs itself and require minimal maintenance, banks can justify the high interest rates paid out from the huge savings they gain from not needing to employ staffs, run bank branches and renovate their outlets. This is the reason why HSBC Direct is boasting its as high as 8 times national savings average' APR.
Rest assure that your money in HSBC Direct, like any other normal savings account, are completely secured and protected by the Federal Deposit Insurance Company (FDIC). Apart from that, user stand to enjoy the same kind of service that comes together with a normal savings account such as 24 hours customer care support and strong security features.
Perhaps the second most valuable element offered by HSBC Direct is the convenience to withdraw funds from any HSBC outlets in the U.S using an ATM card that doubles up as a debit card. This is not a normal feature associated with the average online banks savings account, and where it is absent, withdrawing and depositing funds can take time.
For total convenience, you can even switch all your banking needs to HSBC Direct since it is a full fledge bank with a wide range of service, including online bills payment, online funds transfer, online statement, checking account and investment account. Anyone who use an online banking facility by normal banks are already familiar with this kind of banking anyway. If you do not want the hassle of switching your usual banking faclities to an online bank, simply link your normal account to HSBC Direct to enjoy smoother transition of your money as well as enjoying higher returns for your cash in hand.
Give HSBC Direct a try!
Originally posted 2008-10-13 10:41:06.
What A Stock Trader's Accidental Discovery Can Do For Your Financial Health
Blaine Cooper is a retired banker who recently signed up for a trading account online as he now have more time in hand to play the stock market. Having heard from his golf buddy that online trading firms charge lower commissions, he decided to open an account and try their service. What he found out was more than just cheaper commissions.
After some research on big trading firms, Cooper finally picked E*Trade Financials for their affordable rates and good reputation. He figured that it will be wise to also have an online savings account to compartmentalise his funds when not used for trading, and so he get one to go with his trading account from the same firm. Then something struck him. "It was my wife who first point this out to me. I was never interested in savings accounts that pay peanuts but she insist that this account is different," says Cooper.
Cooper's wife, Rose Marie initially think that her husband's savings account was in fact an investment-linked account since its interest rates were much higher than the usual APR offered by banks. "My CD with a local bank does not even give me this kind of rate!" Rose Marie beamed. While Cooper's savings account with E*Trade yield a 3.3% APR, he can potentially get 4% for CD from the same source.
This is the reason why his wife is planning to switch over her CDs that's nearing maturity. "I am in fact putting a lot of money on the table since my current CD rate is near half of what I can get from E*Trade," she adds. Blaine Cooper, on the other hand, finds that his high yield savings account is giving him more returns even when he is not using the money to trade.
Just what makes an online banks such as E*Trade so generous with their returns? Online banks are non-existent a few years back and their new operation model has worked so well that more and more of them are coming up. An online bank have significantly lower runnings costs compared to that of a conventional bank. There is simply no need for rent, electricity, renovation cost and employee salaries since an online banks do not have any physical outlet offline. This savings enable them to compete with normal banks on an unfair advantage by 'bribing' consumer like the Coopers with higher interest rates.
According to E*Trade's website, their returns can be as high as 8 times the national savings return and a background check on its competitors proved that E*Trade is the current leader for its 3.3% APR. Rose Marie Cooper's only complaint is that she should have discovered this earlier. "I realize that E*Trade used to offer better rates when times are good," she comments.
The Coopers are an example of normal people who found extraordinary value in online banks. Anyone can in fact open an account with E*Trade without having to get involve in stock trading. It is about time banks go to war to secure our saving dollars, and online banks like E*Trade has just raised the bar in high yield bank accounts.
Originally posted 2008-11-13 19:16:03.
The Bests of Online Banking Convenience
Over the years, financial banking has evolved. From manual processes and systems comes the convenience of on-line banking or internet banking. On-line banking lets customers conduct business over a secure website. Most banks today, if not all, provide on-line banking services. The common features include funds transfer, bills payment, balance inquiry, loan applications and a lot more new and innovative services.
In determining which banks to deal with and entrust your hard earned money, ING Direct, ETrade, or HSBC have earned good reputation in the on-line banking arena and are among the popular choices among other banks today.
ING Direct is a growing internet bank which is becoming the largest online bank in the US because of its simple and straightforward banking methods. It offers various products and services which are conveniently transacted online. ING Direct offers a simple online savings account with a higher than usual Annual Percentage Yield or APY. There are no service fees and no minimum balance requirements. Also, with ING Direct you can get CD’s ranging from 1 to 5 years with competitive rates. Other products include mortgages and home equity loans which you can conveniently apply for online.
There is also HSBC Online Savings Account which offers one of the highest-paying savings accounts. For many, HSBC is a bank of choice as it is one of the largest banking groups in the world and it provides interesting and lucrative options for people who want to save money. HSBC Online Savings Account works a lot like other online savings account. Like ING Direct, it offers high APY and no fees or service charges and minimums. With HSBC, you can keep your existing checking account and link it to your HSBC Online Savings account. They also send customers an ATM card to facilitate easy access to cash anytime, anywhere. However, there may be fees charged for checking accounts but HSBC will consider all of your balances together when they calculate how much money you have with them which make it easy to have an interest-earning checking account with no monthly fees.
Another major competitor in the online banking arena is ETrade. With ETrade you can virtually transact various products and services like brokerage, banking and lending and other internet-based financial products and services for retail, corporate and institutional customers. It offers checking and savings accounts, money market accounts, credit cards, and mortgage services. Like ING Direct and HSBC Online Savings Account, its major attraction is also its high APY with no fees. Plus you get an automatic savings plan with the ability to link your accounts with other banks. All you need to open an account with ETrade is a minimum of $1.00. Its difference with other banks is imminent in its merger with ETrade discount brokerage accounts. Also, with ETrade you get your money back for fees from five non-E-Bank ATM transactions per month. This works as a sort of reward to customers.
Indeed, information technology has revolutionized the way in which we conduct banking. Apart from its convenience, there are a lot of benefits we get that allows us to save even more money. You can compare these three online banking services with each other or better yet search for other online banks and decide which one is best for you.
Originally posted 2008-10-17 11:43:14.
Advantages of Online Banking
Now that the world has been doing more and more of its business online, people have started turning to financial institutions which offer their services purely online as well. Many of these institutions, such as ING Direct, or HSBC Direct offer great rates on accounts which are set up online. Because these institutions offer such great rates on their savings and checking accounts, it makes sense to open accounts with them in order to take advantage of their rates. You can always link these online bank accounts to your current external account which belongs to a brick and mortar bank, if this helps you feel more secure about the money you'll be placing in the online only account.
One of the major advantages of internet banking is the fact that it is cost effective. Many real world banks charge smaller fees if you use their online banking services instead of them sending you statements in the mail. Since you'll be doing all of your banking via the web and in the comfort of your home, you'll also save money on gas. In additon to that, since these banks are able to offer their products solely online, they can offer better service as they don't have overhead expenses needed to keep in operation, such as tellers. Because these online financial institutions have less of an overhead than real banks, they are able to offer much greater deals when it comes to opening accounts with them. Online banking accounts have the highest Annual Percentage Yield of any banking account available. In addition to the high APY offered by these banks, many of them also have no fees associated with the accounts you open with them. This keeps more of your money in your account and encourages you to do business with your account more frequently. Real world banks are at a disadvantage here because of the many fees they charge for switching money from account to account and withdrawing money from ATMs.
Another great advantage of online banking is if you have both an online checking and online savings account through the same financial institution, the transactions between these accounts is instantaneous. This fact has made it so that many people keep most of their money in their high yield savings account and transfer what they need out instantly, so they are constantly making the most from their money by keeping it in the higher yield account.
If security is what's stopping you from opening an online banking account with any of the financial providers described above, you should consider that many of these FDIC insured institutions take the same precautions any standard bank would. Any changes that are made to your account must be verified personally by you, either through the mail or on the phone. You'll need to provide security information which only you know the answer to and you'll have to verify any transactions the bank makes on your behalf in order to insure you're who you say you are.
Originally posted 2008-09-30 16:51:26.
