Tuesday, October 25, 2005

US Online Bank Deals

Almost two weeks ago, Mr Wang blogged about how Singapore online banks provide better (>10x) deals than the regular brick-and-mortar ones.

Same case as in the US. Peishan mentioned about switching to a 12-month CD (similar to what Singaporeans call fixed deposits) earning 4.2% APY. This is good if you are sure that you won't be needing the money for the next year and interest rates fall. But with online banks (FDIC insured) like emigrantdirect.com already offering a 4% APY on their savings account, I don't really see much of an advantage for opening a 12-month CD at 4.2%. Especially since interest rates are rumored to rise further.

So if you are resident in the US (with SSN and state ID/driver's license) , do also consider online banking if you want your money to work for you risk-free. Or at least up to the $100,000 FDIC insured limit per account.

Bankdeals is a good site to start your research before you plonk click away your money to the bank; bankrate is a convenient one-stop site for comparison of rates from mortgages to home equity to CDs of the various financial institutions.

More: How the various online banks shape up against one another, in terms of rates and their customer service.

1 comment:

Kevin said...

Great compilation of online banking resources. I've always wondered how they work, then I realized I've been using PayPal ever since I started eBaying anyway, so it's worth a shot. Any updates ever since you posted this? I'm blogging this post over here and over there.