Ok ladys, My mom had gave us big part of the money for the wedding, we will like to put into a saving or CD account can you reccomend me what is better and which bank offer a better interest rare. TIA
We decided to go with a savings bank online through HSBC...we got an interest rate of 6.5% which is unheard of. That was back in February though.
Etrade gives you 5% and there is no minimum balence to maintain.
If you open a CD you will not be able to withdrawn the money until the end of the term. Online savings accounts will get you the best rate but just remember you will not be able to get the cash immediately. (It takes about a week to withdraw money from my ING account)
Posted by FutureMrsPD
We decided to go with a savings bank online through HSBC...we got an interest rate of 6.5% which is unheard of. That was back in February though.
FH and I have a saving account together... but after our E-party we will be putting some money in a CD b/c the rate is higher.... anything to make the $$ faster!!!!!
also im alittle confused as to how it works?
Posted by Jen822
also im alittle confused as to how it works?
Posted by FutureMrsC
Posted by Jen822
also im alittle confused as to how it works?
how a cd or online savings works?
Posted by FutureMrsC
The online savings account is linked to a checking account you have in a regular bank.
If you want to deposit money, you have to first deposit it into your checking account and then schedule a transfer from your checking into you online savings.
If you want to withdraw money you have to schedule a transfer from your online account to your checking account and then once it goes through you can get the cash out of the checking.
I don't know how it is for other online banks but ING usually takes about a week to process.
For a CD you get a higher rate b/c you are basically gauranteeing you will not withdraw the money for a certain period of time (the CD Term...which you decide). Most banks do not allow deposits during this time either. Once the term ends you usually have about a 10 day grace period to withdraw/deposit/change the term and then it will automatically renew to the term you originally set it at. These are usually good if don't plan on spending the money for a while but if you want to use it as a primary savings account its probably not the best option.
Posted by Jen822
Posted by FutureMrsC
The online savings account is linked to a checking account you have in a regular bank.
If you want to deposit money, you have to first deposit it into your checking account and then schedule a transfer from your checking into you online savings.
If you want to withdraw money you have to schedule a transfer from your online account to your checking account and then once it goes through you can get the cash out of the checking.
I don't know how it is for other online banks but ING usually takes about a week to process.
OOOOOH ok i get it nowthanks!!!
thats what i didnt understand was where the money came from and the withdrawal but it makes sense, duh![]()
My money transfers immediately with HSBC and I can use the ATM if i want to take out the $$$ from savings... I can do everything but go to a teller (which is why you are getting such a high rate - for eliminating the middle man)
i like ING Direct, they give a 4.5% rate.
TY girls I am going to sit down w/FH to set everything I want to get some extra money that is siting down
It really depends... do you know when you'll need the money? Most CDs are 6-12 month minimums... if you need the money sooner you can't get it without being penalized. I think a savings account is better, at least for us, because you can always access it! Plus I think we're more likely to save more because you can keep adding to it all the time.
CD
Teachers Federal Credit Union offers a cd for 5% for a year or if you dont want to lock it up and have access to it you can put it in a money market (if it's over $2500) and you get 3.4% interest on that as long as it stays over $2500. LOL FH is a banker.
