Just received this email from my friend Aaron concerning high-interest online savings. Specifically, ING DIRECT’s Orange Account:
“I have a quick question for you. I have about 6 months of emergency savings saved up in a savings account at a regional bank. My friend was telling me how he moved his savings over to ING DIRECT and has been happy with those guys. I was thinking of doing the same. What do you think?”
I’m definitely a big fan of using a high-interest online savings account for your emergency savings. Most are FDIC insured. Typically they don’t come with any fees or minimum balances. And best of all, they pay you higher interest than a typical brick and mortar type bank.
One last reason I like this type of account for emergency savings is because it separates your savings from your checking account. How many times do you find yourself dipping into your emergency fund just because it’s easy access? These online savings accounts aren’t as accessible (they typically take 3 business days or more to move your money in and out). In that sense, I’ve found that I’m able to stick my money there and forget about it until an emergency comes up.
And as for ING DIRECT, they’re definitely one of the top high-yield online savings accounts available. Known for their nice website and great service. They also offer a $25 bonus for accounts opened with more than $250. Hope that helps.
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PT,
Thanks for the shout out!