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Old 03-29-2018, 10:02 PM
 
Location: Oregon, formerly Texas
5,242 posts, read 3,393,710 times
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Quote:
Originally Posted by Quietude View Post
Which is a perfectly good reason to go online. I suspect, though, that for many people the era of Ally, ING etc.'s advantages has passed.
There must be some state issues that affect them somehow.

The CU's around me have great rates for loans but are at best half of what online banks are offering for deposit accounts. I would consider them if I was shopping for financing.

We have Chase because they had a good promotion to open an account & we do like to have the branch support available when we need it. I went online to put our cash reserves, though.

One thing I would note about the online banks is to be aware of who their parent is, just in case you don't want to support them. Ally Financial is the banking arm of General Motors, formerly GMAC. Synchrony Financial is the banking arm of GE Capital. Marcus is the retail spin-off of... well, Goldman Sachs, at least they aren't ashamed of their name. CIT group's banking infrastructure comes from its acquisition of OneWest bank which was one of the most distressed mid-size players in the financial crisis. Barclays just settled a $2 billion lawsuit by New York for mortgage fraud from 2005-2007. Capital One was hip deep in sub-prime mortgage loans and got major TARP funds.

Most of these guys were complicit in the financial crisis to one degree or another & most received bailout money. My wife was upset about their pedigrees when we were deciding between them, but whatcha gonna do? They're paying the best interest & they're all FDIC insured.

Last edited by redguard57; 03-29-2018 at 10:31 PM..
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Old 04-01-2018, 03:38 PM
 
91 posts, read 29,545 times
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Quote:
Originally Posted by 2sleepy View Post
Most banks have mobile deposits. As long as you have a smartphone it's much easier than going to the bank even if it's a few blocks away. Open the app, click on deposit, enter the amount of the check and take a picture of the front and back of the check with your phone's camera. While I can't get $100 bills from a bank without a local presence I can get as much as I want out of the ATM, if I need more than $400 I call the bank and they raise the limit for the day.
And what if you lose your online bank's ATM card? You won't have access to your funds until the new card arrives in the mail. If you have a local bank, you can just walk right in and make a withdrawal with a teller until that new card arrives.

How much money do you all keep in cash, where 1% extra makes such a tremendous difference?
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Old 04-01-2018, 03:46 PM
 
Location: Aurora Denveralis
2,961 posts, read 1,007,246 times
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Quote:
Originally Posted by buggzy702 View Post
How much money do you all keep in cash, where 1% extra makes such a tremendous difference?
Online banks were (IMHO) a niche provider in between the collapse of local banks' interest rates and slow move to capable online interfaces. Now that nearly everyone has one or more local banks or CUs that have great online services, and often interest rates approaching the online banks, I think their day will fade.

Of course, local banks with full walk-in services for all customers are already fading, too. They'll meet in the middle, probably even more stratified by customer type than now.
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Old 04-01-2018, 04:03 PM
 
Location: la la land
27,138 posts, read 11,338,839 times
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Quote:
Originally Posted by buggzy702 View Post
And what if you lose your online bank's ATM card? You won't have access to your funds until the new card arrives in the mail. If you have a local bank, you can just walk right in and make a withdrawal with a teller until that new card arrives.

How much money do you all keep in cash, where 1% extra makes such a tremendous difference?
The post you responded to was about using a smartphone to make deposits, it wasn't even about online banks although most do have the ability to post deposits with your smartphone.

I get 2.2% with my local credit union, it's not much but I usually have a balance of 8-10 k in my checking account so it's definitely better than the .01% you'd get from a Wells Fargo checking account
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Old 04-01-2018, 04:12 PM
 
91 posts, read 29,545 times
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Originally Posted by 2sleepy View Post
The post you responded to was about using a smartphone to make deposits, it wasn't even about online banks although most do have the ability to post deposits with your smartphone.

I get 2.2% with my local credit union, it's not much but I usually have a balance of 8-10 k in my checking account so it's definitely better than the .01% you'd get from a Wells Fargo checking account
The post I was responding to was responding to a post about the necessity of having a physical bank branch to negotiate a check. You were downplaying that need based on mobile check deposit. I gave another example of why a physical branch is a good thing. I guess you don't have a response.

An extra 2% on 8k is 160 bucks. Reduce that a bit because you'll report the interese. For the loss of 100 and change annually, I'd rather have a local branch when necessary for larger transactions, notary services, safe deposit box availability, etc.
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Old 04-01-2018, 04:26 PM
 
Location: Aurora Denveralis
2,961 posts, read 1,007,246 times
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Quote:
Originally Posted by buggzy702 View Post
An extra 2% on 8k is 160 bucks. Reduce that a bit because you'll report the interese. For the loss of 100 and change annually, I'd rather have a local branch when necessary for larger transactions, notary services, safe deposit box availability, etc.
Other than going from a bank with a 0.10% rate to one with a 2.1% rate, where do you get an "additional 2%"? For one thing, no one has pointed out an online savings account with a 2.x% rate (I might have missed it somewhere in there), so if you're comparing local bank savings (which have typically dismal rates no matter what) with online CD rates... apples, oranges, kiwi, etc.

It looks as if most people can get about 1% more overall between a good local bank (not necessarily theirs) and an online bank. Did I miss any exceptions to that?
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Old 04-01-2018, 04:30 PM
 
Location: la la land
27,138 posts, read 11,338,839 times
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Quote:
Originally Posted by buggzy702 View Post
The post I was responding to was responding to a post about the necessity of having a physical bank branch to negotiate a check. You were downplaying that need based on mobile check deposit. I gave another example of why a physical branch is a good thing. I guess you don't have a response.
An extra 2% on 8k is 160 bucks. Reduce that a bit because you'll report the interese. For the loss of 100 and change annually, I'd rather have a local branch when necessary for larger transactions, notary services, safe deposit box availability, etc.
I have a local bank, my credit union has a branch 2 miles from my house. Not sure why you are saying that I don't have a response
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Old 04-01-2018, 04:35 PM
 
Location: la la land
27,138 posts, read 11,338,839 times
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Quote:
Originally Posted by Quietude View Post
Other than going from a bank with a 0.10% rate to one with a 2.1% rate, where do you get an "additional 2%"? For one thing, no one has pointed out an online savings account with a 2.x% rate (I might have missed it somewhere in there), so if you're comparing local bank savings (which have typically dismal rates no matter what) with online CD rates... apples, oranges, kiwi, etc.

It looks as if most people can get about 1% more overall between a good local bank (not necessarily theirs) and an online bank. Did I miss any exceptions to that?
I didn't go to an online bank, my local credit union offers 2.2% interest on checking accounts: https://www.sactocu.org/Personal/Acc...erest-Checking

Anyone looking for interest bearing checking accounts would do well to check their local credit unions.
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Old 04-01-2018, 04:38 PM
 
91 posts, read 29,545 times
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Quote:
Originally Posted by Quietude View Post
Other than going from a bank with a 0.10% rate to one with a 2.1% rate, where do you get an "additional 2%"? For one thing, no one has pointed out an online savings account with a 2.x% rate (I might have missed it somewhere in there), so if you're comparing local bank savings (which have typically dismal rates no matter what) with online CD rates... apples, oranges, kiwi, etc.

It looks as if most people can get about 1% more overall between a good local bank (not necessarily theirs) and an online bank. Did I miss any exceptions to that?
I used an absolute best-case scenario. If someone can get an extra 2% online, on 8k (the dollar figure given by the person I responded to. Granted he was referring to a credit union), it's a whopping 160 bucks annually.

So back to my original question: how much cash is really being parked in savings accounts, to make the higher online interest rate impactful?
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Old 04-01-2018, 11:04 PM
 
Location: Oregon, formerly Texas
5,242 posts, read 3,393,710 times
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Quote:
Originally Posted by buggzy702 View Post
I used an absolute best-case scenario. If someone can get an extra 2% online, on 8k (the dollar figure given by the person I responded to. Granted he was referring to a credit union), it's a whopping 160 bucks annually.

So back to my original question: how much cash is really being parked in savings accounts, to make the higher online interest rate impactful?
My emergency fund (6 months expenses) is 25k. I want that in an interest-bearing account I can access easily and no penalties. The difference between .10 or .30 and 1.75 or 2.0 is several hundred.

You can set up external transfers with your in-town bank, money's available in 3 business days.
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