Online Savings Accounts

[randomthoughts1875]

I've seen a lot of offers for different online banking institutions that offer a much higher interest rate on their savings accounts compared to what my local bank offers. Are these kinds of banks legitimate? Do any of you use them?

[moonmagick]

I was hoping someone had answered. I too am quite curious about that. I agree the rates are enticing, but I am leary of putting my money in an institution I have never heard of.

[katharina]

Quote:

Originally Posted by moonmagick

I was hoping someone had answered. I too am quite curious about that. I agree the rates are enticing, but I am leary of putting my money in an institution I have never heard of.

I was hoping the same thing because I've been considering it, too. I'd
really like to have an account like that, BUT with all the patriot act new
rules, they'd all need a copy of personal information that I don't feel
comfortable sending to a new and unknown place. In the past, if you had
the money, you just opened an account and having the money is all that
mattered. Wish it would still be like that. If anyone knows of an online
bank (legit, please hehe) that won't need license, ssn, and other personal
data, please let me know. I know that I need to show those things to local
banks and of course I don't have a problem with that... it's just the "stranger"
factor.

[nangel78]

I have heard about this myself. I stick with my local institution. It makes things a lot easier.

[SageMother]

Quote:

Originally Posted by randomthoughts1875

I've seen a lot of offers for different online banking institutions that offer a much higher interest rate on their savings accounts compared to what my local bank offers. Are these kinds of banks legitimate? Do any of you use them?

I think its best to stick with your brick and mortar institution. It they offer online banking services then use them. A higher interest rate at online banking sites can mean you take a greater risk. Are these online savings sites FDIC insured?

[nangel78]

I agree with you Sage. It does help with matters other than an online account.