Friday, August 22, 2014

New Savings Account

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?

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