I bit the bullet and opened a new online savings account. I am really bad about having cash in my local savings account through my bank and transferring because I "need" something that is out of my budget. I have heard of a few different online banks that you can get a higher savings rate than at a local bank, but never looked into them further.
Online banks can offer a higher saving rate because they do not have branches to pay overhead for. Sure, they have hosting fees and other internet related expenses, but I'm sure (in relation to the # of customers) it doesn't compare to the cost of rent, utilities, etc that a traditional bank has.
I got a Paypal payment for $90 from various mystery shops I did last month and decided that instead of adding it to my regular bank account, I would open an online account. Fingers crossed this will keep my money in a bank instead of retail stores. :)
I looked online and found two options that would be good for my needs. Ally Bank and Capital One 360. Ally Bank has a bit higher interest rate than Capital One 360, but when I tried to open an account, it was a pain in the rear! I had to fill out an online form, call a number, was put on hold a few times (plus I was online the line for over 16 minutes and they couldn't figure out what was happening), and then I just decided to cancel that account and go with Capital One. They wanted me to submit my social security card via email (totally unsecure, never do that!) and I was not about to do that!
Capital One was super easy to set up and I was able to complete the process quickly with no annoying phone calls or uploads. It does take a few days for the opening deposit to be put in to my account, but it will be there soon. Plus, it has a .75% savings rate vs my local bank is .10%, that is a .65% difference!
Oh, and if you sign up with them, we both get $20 (if your account is opened with $250 or more)!!!! Go here and sign up! Save that $$ and start budgeting! :)
For me, out of sight is out of mind. I don't want to look at the balance or anything unless I am verifying that a deposit is made. Is it just me, or do other people do that too?