Best online savings account?

Best online savings account?
Hi all. Most of the time i never put any money in a saving account for interest which was very stupid of me. A few days ago i put a couple of thousand dollars on IngDirect for 4.2 percent since i heard it was real good and simple since there were no fees, penaltys etc and basically all these savings accounts shown on bankrate.com are FDIC insured up to 100K.

I know other savings accouts like hsbc offer more ... 4.5 percent and some places like ETrade offer 5.05 percent savings. I chose INGDirect because i heard it was the easiest one to sign up and HSBC's website is a bit confusing from someone. I also see 3 month CDS from places like Countrywide Financial that offer 5.45 percent 3 month Cds. However, someone on the 2+2 threads said they wouldnt really trust those Countrywide Financial because Countrywide cant sustain gving 5.45 percent in the longrun and that.

I only have money on ingdirect about 5k for 4.2 percent. I would never put money in a regular savings account because those pay like 0.25 percent. Should i move my 5K to something like ETRADE savings accounts for an extra 0.85 percent. I just got bad thoughts from people who said they dont like putting money in a savings that doesnt have a big name.

Thanks all.


Answers:

Kathryn:  I've been with ING for years, and I really like them. I know I could get a bit more interest at several other online banks, but it's not worth it to me. With $5,000 in savings, you'd only make an additional $45 or so per year at ETrade. I wouldn't bother if I were you.
2007-12-12 11:46:05
Broncos88:  Ditto for me. We just started using ING and like them a lot. I'd be careful of shifting a large sum of money around in online accounts. If anything, I'd diversify it up, split it down the middle and see which one works out for you the best. Give it about a year and move all of it into one account if you're really satisfied one way or the other.
2007-12-12 11:51:06
DEN GIRUS:  YES
Move your 5K to some other savings accounts for extra percents.

Please check my profile and email me. Ill give you a good advice where you CAN get higher returns.

Good luck
2007-12-12 11:56:53
Chosen Answer
ratezip:  according to http://www.ratezip.com bank interest rate search engine Amtrust Direct is offering a 5.13% High yield savings account currently. Amtrust is a regular bank focused on deposits, not mainly a mortgage company like Countrywide, so I would feel confident. Of course they are FDIC insured as well.
2007-12-12 20:49:21
mister ed:  ing or boa are both good ones!!!
2007-12-16 08:40:13