A couple of months ago, I switched our online savings account from ING to CIT to take advantage of the much higher interest rate from CIT Bank. Currently CIT Saving pays 40% higher interest than ING Saving and that’s a big difference. Well, it sounds like a big difference, but it’s really only 0.3%. I have been with ING for many years now and it’s a bigger change than I thought to switch over.
Current rate – January 7, 2013. You can sign up with one of these banks by clicking through their banners in the first column below.
|Institution||APY||Minimum Deposit||Misc||1 year of interest on $50,000|
|0.90%||$100||$10 outgoing wire transfer fee.||$452.03|
ING No More
As some of you may know, Capital One recently acquired ING Direct USA. ING Direct will be renamed Capital One 360 early 2013 and the lovely signature orange color will be gone. 🙁 Check out their new logo below. Capital One 360 will also revamp the whole product line and will most likely lower interest rate further.
ING’s website was easy to use and I never had any problem with it. Over the past 10 years I have used it on and off, I never had to call anyone and that’s the way I like it. It was easy to link new accounts online, initiate electronic transfers, and keep tabs of my money. ING was one of easiest banking sites to use on the internet and I hope Capital One 360 will keep everything the same. I give ING 4 out of 5 stars overall. If their interest rate was higher, I’d give them 5 stars.
The obvious big advantage of the CIT online savings account is the higher interest rate. However, their site is less polish, isn’t as easy to use, and I had to jump through a few more hoops than I was used to at ING.
Initial Deposit and First Wire Transfer
When I opened a CIT saving account, I had to input ING’s routing number and account number to do the initial deposit. They made 2 small transactions and I noted the amount and verified the account. This is normal and I expected it. However, after a couple of weeks, I wanted to wire transfer more money from ING and I had to jump through this hoop again. Why did I have to do this? Why can’t they save the info from the initial deposit?
It’s the end of the year and I wanted to withdraw $10,000 to give a boost to Baby RB40’s 529 college saving account. I went into the transfer screen at CIT and I found that I couldn’t do it. I called CIT and they said I have to activate outbound transfer. A couple of days later, I got a message in my CIT account and they wanted my license and the first page of the latest statement from the accounts to be linked. These really are a lot of hoops to jump though. I never had to do any of this when I was with ING.
Call 855-GoBankCIT to activate an outbound transfer.
OK, so I sent them the documents they requested and now I’m ready to transfer $10,000 my account. Now I found that they have a default daily withdrawal limit of $5,000. I’ll have to call them again to lift this limit. At this point, I’m trying hard to refrain from swearing.
*Update* I called and they told me they won’t lift the transfer limit until the account is open for 6 months or so. Meanwhile, if I need to make a big withdrawal, I can call and set it up.
I’m going to give CIT 2 stars out of 5. These hoops they have me jumping through aren’t that much problem in the grand scheme of things, but ING was just so much easier. Anyway, hopefully after this call to lift the withdrawal limit, I’ll be done jumping. Overall, I like ING better, but the rate difference is just too big. If they give me any more hassle, I’m going to have to seriously consider Ally bank as an alternative.
Who are you banking with today? Are you happy with the customer service and interest rate? If you are with Ally Bank, what do you think?
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.