Know Your Online Savings Account's Funds Transfer Limits

Posted September 1, 2010

So, you've compared interest rates, looked at customer service reviews, and checked out financial safety ratings on several banks. You might think that your search for a new online savings account is done, but have you considered daily and monthly funds transfer limits as a factor in choosing an online savings account?

Let's face it, after collecting interest from the bank, you'll eventually want to do something with all that money. And before you can do something with the money, you're going to need to transfer it out of your savings account.

No problem you say? You're just gonna hit the outgoing ACH transfer button and all will work out fine, right?

Well consider this scenario...

Suppose you're saving up for a new $50,000 luxury car. Finally, after months of diligent saving, your savings goal has been reached. Now you're at the dealership, the papers are all signed and all you need to get those shiny new keys  is to zip the funds from your online savings account into your checking account.

Surprise! It turns out, your bank only allows you to transfer $10,000 per day with a maximum of $25,000 per month.

Looks like you won't be riding home while sitting on plush leather luxury today.

Instead of getting stuck in that situation, take a look at each bank's funds transfer limits to make sure the amounts work for your savings goals.

Keep in mind that it is usually easier to transfer money into the account than is to take money out. Banks will normally have stricter limitations on the amount transferred out.

For those readers who are in the market for a new 2010 Bentley Continental GT (base price of about $180,000), or for those readers who just want high funds transfer limits in case of an emergency, consider WTDirect, the online division of Wilmington Trust.

The WTDirect Savings Account enables savers to withdraw a whopping $200,000 per day with a maximum limit of $200,000 outgoing per month using WTDirect's ACH transfer system.

That's enough cash to pay for your new Bently and the speeding ticket you'll get on the way home from the dealership. Vroooom!

View More: Online Savings Account Rates

$200 Savings Bond with New Checking Account

Posted August 31, 2010

Wainwright Bank & Trust Company (www.wainwrightbank.com) is giving a free $200 Series EE U.S. Savings Bond. All it takes to get the award is to open a new Wainwright Bank Value Checking Account and have a recurring Direct Deposit made to the account.

The Direct Deposit can be from payroll, Social Security or public assistance.

The Savings Bond will be mailed within 90 days of account opening. The account must be in good standing with active Direct Deposit at the time of Bond mailing.

The offer is not available for current personal checking customers or anyone who has had a personal checking account with Wainwright Bank in the last 60 days.

Wainwright Bank has 13 branches in Massachusetts. Before opening an account, check with the bank to make sure that you live within Wainwright Bank's service area and are eligible to open an account with the bank.

The Value Checking account requires a $10 minimum deposit to open. There is a $500 minimum balance requirement to avoid $6 monthly service charge and $.25 per check fee. However, as long as the account has a Direct Deposit, the monthly service charges and minimum balance requirement are waived.

Also, the monthly service charge is waived for customers under the age of 19 or 65 and over.

View More: Bonus Deals

High CD Rates at Flagstar Direct

Posted August 30, 2010

Flagstar Direct (www.flagstardirect.com) doesn't give savers a lot of CD options - their website lists only two. But for those who are looking for high CD rates with a shorter term to maturity, these two certificates may by the ones you want.

The two choices are a 6-Month CD or a 1-Year CD.

The 6-Month term has an annual percentage yield (apy) of 1.25% and the 1-Year term has an apy of 1.55%.

The 6-Month CD has a rate comparable to what can be earned on a savings account. Savers worried about their savings account rates getting cut in the next six months may opt for the 6-Month CD since the 1.25% yield is guaranteed for that time period.

The rate on the 1-Year CD, on the other hand, is slightly higher than what is available on most online savings accounts. This could be a nice rate boost for depositors who don't expect to need their principal for the duration of the one-year term and are willing to transfer their liquid cash from a savings account. 

Interest from both certificates can be withdrawn any time during the term after the interest is credited to the account. However, withdrawing interest will lower the annual percentage yield.

The minimum deposit required to open either the 6-Month or 1-Year CD is $500.

The certificate of deposit will automatically renew at the date of maturity at the then current rate.  Renewal can be prevented by notifying Flagstar Direct in writing prior to maturity.

View More: CD Rates

CD Rates This Week

Posted August 17, 2010

Have you been wondering if CD rates have hit bottom yet? It doesn't look like it.

Sure, every now and then banks throw savers a bone by raising a rate here and there, but the trend continues to be down.

No bank exhibits the downtrend more than Ally Bank which has been reporting CD rate cuts multiple times a week. However, while the bank's name comes up often when listing rate cuts, their strategy seems to be more “death-by-a-thousands-cuts,” than a single big chop. The bank usually cuts no more than two CD terms at a time and the cuts end up being only a mere basis point or two.

But let's not place all the blame for lower rates on Ally Bank. They weren't the only ones cutting rates last week. Capital One Bank, EverBank, and OneWest Bank played their part as well.

Here's where the top CD rates stand as of August 16, 2010. Rates given are in annual percentage yield (apy).

3-Month CD: 1.35% apy at iGObanking.com
6-Months CD: 1.16% apy at VirtualBank
1-Year CD: 1.50% apy at Discover Bank
2-Year CD: 1.89% apy at Bank of Internet
3-Year CD: 2.20% apy at Colorado Federal Savings Bank and Discover Bank
4-Year CD: 2.50% apy at First Internet Bank
5-Year CD: 3.00% apy at Discover Bank

iGObanking.com gives the 3-Month CD a big boost by offering 1.35% apy. The next highest offer on a 3-Month CD is 0.80% apy from Virtual Bank. That's a big difference. If you'd rather lock-in a rate for your short-term savings needs instead of going with a variable rate online savings account, this CD from iGObanking.com may be the one for you. The minimum to open the 3-Month CD at iGObanking.com is $1,000 in money new to the bank.

For those who would rather go long-term, Discover Bank offers CD terms of 7 years and 10 years. The 7-Year CD has a rate of 3.25% apy and the 10-Year CD has a rate of 3.50% apy. An initial deposit of at least $2,500 is required to open Discover Bank CDs

Be sure to read reviews from current and former customers of Bank of Internet, Colorado Federal Savings Bank, Discover Bank, First Internet Bank, iGObanking.com, and VirtualBank to help you decide which bank to open a CD account with.  

View More: CD Rates

E-Money Market Account from OneWest Bank

Posted August 11, 2010

Judging from user comments, readers researching OneWest Bank (www.owb.com) come to eMoneyCentral.com to mainly discuss mortgage horror stories, but you should know that there is more to this bank than loans gone bad.

OneWest Bank also offers competitive rates on CDs and money market accounts.

One such account is the E-Money Market account. This is a high-rate online money market account that earns an annual percentage yield (apy) of 1.15% with a minimum balance of $1,000.

Although the account has a tiered rate structure, all balances above $1,000 currently earn the same rate. If the balance falls under $1,000, the account doesn't earn interest and a monthly fee of $7 will be charged. Accounts that keep a minimum balance of at least $1,000 will not be charged a monthly fee.

Despite being a money market account, the E-Money Market account does not come with check writing. Fortunately, the account does come with ATM access. ATM withdrawals are free, but you may get charged for using a non-OneWest Bank ATM. ATM fees are not refunded by OneWest Bank.

Besides using an ATM, cash can also be accessed by linking the E-Money Market account to your other accounts and transferring funds between the two by an ACH transfer.

The E-Money Market account can only be opened online at OneWest Bank's web site.  

View More: Online Savings Account Rates

Bank of the West Free iPod touch Offer

Posted August 5, 2010

Open a Free Checking, Choice Interest Checking, or Choice ATM Checking account at Bank of the West (www.bankofthewest.com) to get a free iPod touch.

To get the iPod touch, open a new personal checking account and either establish minimum monthly recurring direct deposit of $500, or make 10 bill payments with Bank of the West Online Banking or make 20 debit card transactions.

The qualifying transactions must be completed by 10/31/10. The iPod touch will be shipped to your account address of record by December 15, 2010.

Offer valid for new personal checking accounts opened from 07/19/10 – 09/3/10 with $100 or more from a financial institution other than Bank of the West.

Offer valid for qualifying accounts opened in person at participating branches in CA, CO, UT, WY, and NV or for accounts opened online by residents of AZ, CA, CO, ID, IA, KS, MN, MO, NE, NV, NM, ND, OK, OR, SD, UT, WA, WI and WY. 

View More: Free Gifts

$100 Cash Bonus with Chase Checking

Posted August 3, 2010

Ready for a new checking account? Get one that comes with a $100 bonus. Open a Chase Checking account from Chase (www.chase.com), set up direct deposit or make five debit card purchases and get a $100 cash bonus.

To qualify for the bonus, you must open a new Chase Checking account with a $100 minimum deposit of new money (money not currently held by Chase or its affiliates). Also, within 60 calendar days of account opening, Chase must receive from your employer or the government a monthly electronic direct deposit of your payroll, pension or government benefits, such as Social Security, or you must have at least five debit card purchases posted to your account.

The $100 reward will be deposited into your new account within 10 business days after meeting one of these requirements.

The offer is not available to existing Chase checking customers.

A Chase checking account comes with several free services such as free Online Banking and Bill Pay, free Account Alerts sent by phone or e-mail, free online or telephone access to your checking accounts, free access to 15,000 Chase ATMs, free Chase Debit Card with Zero Liability protection, and free Banking.

The offer is valid through 8/14/10. Apply online at Chase to open a new checking account.

View More: Bonus Deals

Discover Bank Keeps CD Rates at the Top of the Charts

Posted July 30, 2010

The race to the bottom of the rate chart has thankfully slowed to a crawl during the summer. Banks that have vigorously cut rates early in the year have exhausted themselves out. But even though the rate cutters are fatigued, some still have enough juice to keep the rate cuts coming week after week.

If you don't want to put your money in a bank that is participating in the rate cut race, take a look at Discover Bank. This bank hasn't cut rates since May and the bank has even raised the 5-Year CD rate in July.

Discover Bank scores the top spot on eMoneyCentral.com's CD Rate page for both the 1-Year CD and 5-Year CD. The 1-Year CD pays an annual percentage yield (apy) of 1.50% and the 5-Year CD  pays an apy of 3.00%.

Although the rest of Discover Bank's Certificates of Deposit don't get the #1 spot, most land close to the top of the chart.

Discover Bank's CD rate line-up as of July 30, 2010 is the following:

3 Months: 0.65% apy
6 Months: 1.15% apy
1 Year: 1.50% apy
2 Years: 1.90% apy
3 Years: 2.25% apy
4 Years: 2.45% apy
5 Years: 3.00% apy
7 Years: 3.25% apy
10 Years: 3.50% apy

An initial deposit of at least $2,500 is required to open a Discover Bank CD Account. Discover Bank CDs can be opened and funded online in a matter of minutes at Discover Bank's web site.

View More: CD Rates

1.35% APY CD for 3 Months at iGObanking.com

Posted July 29, 2010

iGObanking.com gives their 3-Month CD rate a jolt to 1.35% annual percentage yield (apy) from a measly 0.50% apy. To open the CD, the deposit must be new money to the bank – that is, money not already on deposit at the bank. The minimum deposit to open the CD is $1,000.

This 3-Month CD from iGObanking.com is significantly higher than the next highest 3-Month CD rate listed on eMoneyCentral.com's CD Rate page which is 0.80% apy offered by Virtual Bank.

View More: CD Rates

Top Online Savings Account Rates

Posted April 22, 2010

Online savings account rates have been holding steady this week. Although there have been a few rate cuts this month, activity in April has so far been much milder than previous months this year.

Banks posting rate cuts to online savings accounts and money market accounts in April have been Savings Square, Bank of Internet, and Colorado Federal Savings Bank.

One account that has gone against the general rate trend is the InterestPlus Online Savings Account from Capital One. This account actually had two rate increases in April. This probably was a case of a bank that cut too hard previously and found its rate too far below the competition.

Here are the Top Online Savings Accounts as of April 21:

2.00% APY Redneck Bank
1.35% APY Capital One Bank
1.35% APY Discover Bank
1.30% APY American Express
1.30% APY Bank of Internet

Redneck Bank and American Express only require a $1 to open their respective savings accounts. Capital One Bank requires $2,500 to open the InterestPlus Online Savings Account. Discover Bank requires a minimum of $500 to open the Discover Online Savings account. Bank of Interenet requries $100 to open the High Yield Savings account.

View More: Online Savings Account Rates

CD Rates Got a Boost on Friday

Posted April 19, 2010

The Friday surprise last week wasn't news of more bank failures (a common occurrence), but of CD rate increases.

Banks posting CD rate increases on Friday were Ally Bank, EverBank, and Virtual Bank.

Ally Bank upped the rate on the 11-Month No Penalty CD to 1.40% apy from 1.35% apy.[Read Ally Bank Reviews]

EverBank boosted CD rates on the 3-Month CD to 0.85% apy from 0.75% apy, and on the 2-Year CD to 1.85% apy from 1.80% apy. [Read EverBank Reviews]

Virtual Bank posted the most rate increases with CD terms of 3 months to 5 years all receiving a rate hike. [Virtual Bank Reviews]

Minimum amounts required to open a CD account is $0 at Ally Bank, $1,500 at EverBank, and $10,000 at Virtual Bank.

View More: CD Rates

Ally Bank Raised 11-Month No Penalty CD Rate

Posted April 16, 2010

A "No Penalty" feature is good. A rate increase is great. Ally Bank delivered both on Friday.

Ally Bank recently introduced an 11-Month No Penalty CD at the end of March at a rate of 1.35% annual percentage yield (apy). As of April 16, Ally is boosting the rate to 1.40% apy.

What is the "No Penalty" feature? With regular CDs, if you withdraw your principal before the maturity date, you will incur a penalty fee. Ally Bank's No Penalty feature allows you to withdraw the full balance and interest any time after the first six days of funding the CD without incurring a withdrawal fee.

This no penalty feature should interest people who want to lock in a rate with a CD, but fear that they may need the money before the term ends.

If you are interested in opening an Ally Bank No Penalty CD, there is no minimum deposit to open one.

View More: CD Rates

CD Rates at Bank of Internet

Posted April 14, 2010

I'm not sure if you can call CD rates exciting, but CD rates at Bank of Internet have been bouncing around the past two weeks like kids on a sugar high.

Last week, Bank of Internet boosted CD rates - a site almost as rare as seeing Big Foot - on terms of 3 months, 6 months, 1 year, 2 years, and 3 years.

This week, the 3-Month and 6-Month CD rates were cut, but the 4-Year CD rate was raised.

There's a whole lot of movement going on at B of I.

So what do Bank of Internet's certificates pay now? As of May 13, Bank of Internet pays the following CD rates...

3 month: 0.35% apy
6 month: 0.75% apy
1 Year: 1.54% apy     
2 year: 2.00% apy
3 year: 2.33% apy
4 year: 2.92% apy
5 year: 2.86% apy

The 3 month and 6 Month CD rates are among the bottom of eMoneyCentral's CD rate charts, but the 1-Year to 4-Year CDs sit within in close proximity to the top of the charts.

To open a CD at Bank of Internet, a minimum deposit of $1,000 is required.

For opinions of Bank of Internet, check out reviews from readers of eMoneyCentral.com.   

View More: CD Rates