Online banks?

performa636cdperforma636cd
Posted:
in AppleOutsider edited January 2014
Anybody have accounts with online banks? I currently have a "conventional" Wachovia savings/checking account, but was thinking about opening another account to take advantage of higher interest rates that online banks such as E-Trade Financial and ING Direct offer.



Any opinions or experiences with these (or other) institutions? I basically want to drop off some money for 1-2 years into a CD. ATM withdrawals, checks, etc. are not required.



I assume it's ok to have multiple bank accounts as long as I report the interest/earnings to the IRS, right?

Comments

  • Reply 1 of 2
    pbg4 dudepbg4 dude Posts: 1,611member
    You can have as many bank accounts as you want. Each interest bearing account will send you a 1099 at the end of the year.



    My wife has had an account with ING for a couple of years now, and it's always worked without a hitch for her. You set up your ING profile and give them your bank account info (so you can deposit/withdraw cash). ING does a couple of small transactions to make sure all the info is valid.



    Once everything is validated you can set up automatic or manual transfers to your ING account. If you want to withdraw money just pop onto the ING website and punch in the transfer amount. The transfer is basically instantaneous.
  • Reply 2 of 2
    performa636cdperforma636cd Posts: 187member
    Thanks for your response. How about an online investment account such as Fidelity? Anyone have experience through there, in particular experience in buying US Treasury Securities?
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