Cash The Checks

It’s getting harder to find a place to keep your savings lately. I used to get around 6% APY from some online savings accounts as was chronicled on this blog several years ago. Now I’m hard pressed to find any bank offering just a mere 2%. I have been using GMAC/ALLY bank for 3 years now. I’m just going to keep my money there for now because I get 0% if I leave it under my matress. Before anyone says that I should invest it, I’m only interested in FDIC insured accounts.

- Edwin, CashTheChecks.com

If they pay so much, why am I not going to throw some money into my Paypal account and keep it there?

First, Paypal has a history of “freezing” accounts for no reason. Back in 2001, I had an account frozen and all of my funds were frozen as well. I couldn’t withdraw my money or accept any either. They asked me to send them information about me. It’s been so long I forgot what they wanted, but probably a copy of my state issued drivers liscene and a copy of a credit card, and most likely a copy of a current utility bill. I sent in everything and I never did get that account re-opened.

If you think this was a fluke case, then take a look at Paypal Sucks. It’s happened to lots of other people too. I think Paypal has cleaned up its’ act after being sued, so I doubt anything like that would ever happen again. eBay owns it now too so that’s given me enough confidence to keep using Paypal under a new account I created soon after my first one was closed. Just how confident am I in Paypal? Well I use it to pay for my eBay purchases and receive money from my eBay sales, but as soon as I have money in there, it goes right back to my bank account.
Just a couple of months ago, I “accidently” left a few hundred dollars in my account.. I was surprised to see it earned interest, as I had forgotten Paypal offered that. I think it was 5.05% APY. Not too shabby, but not FDIC-insured, so “save” at your own risk.

- Edwin, CashTheChecks.com

I like their high interest rate. But they don’t update how much money you’re making until the end of the period, every month. With ING, you can log in every single day and see your interest grow day in day out.

The HSBC website also looks like it was built years ago by a beginner in web design. There’s also many features but it’s complicated and ING’s site is much easier to navigate and the sign-up process is much better.

Ultimately what it all boils down to is the money, so I’ll stick with HSBC for the high rates, for now at least.

- Edwin, CashTheChecks.com

Filling out the application at HSBC was simple enough, just put in your information and you’re done. It isn’t that easy to open an account and begin earning interest though.

After joining, my application still wasn’t complete because I needed to prove that the address I entered was my real address. So I had to mail in some form of proof. Any utility bill would do, so I mailed in a copy of my DSL bill which showed my current address. This just cost me some printer ink, paper, an envelope, a $0.39 stamp and of course my time to get the paperwork and get it off to the post office. I also had to confirm my bank account information by verifying a small deposit HSBC made to my account.
Within just 2 days of mailing my information, I received a notification that they received it and my application was approved. I thought it was over but it was only the beginning. Next I needed a customer ID number, a username and a password, an ATM card and a pin number. All of which needed to be mailed to me, in SEPARATE mailings! As you can imagine this took quite a while. I did get one mailing per day on average though.

After getting my information, I finally was able to log in to my account at HSBC. I wanted to transfer some money into my HSBC account, this is what they call a “Bank To Bank Transfer”. I put in my bank information and I also needed to type in my ATM pin number. The problem was that I didn’t have one. So I called HSBC to ask them for one, and they said they’d mail it to me, big surprise. A day later I had the mailing and was able to complete my bank to bank transfer request. When that was done, I transferred some funds into my HSBC account from my checking account and the process was finally over.

- Edwin, CashTheChecks.com

I finally decided to give HSBC a try because of their much higher APY rate. Currently it’s at 5.05% which is much higher than ING’s 4.35% APY. After the Feds raised interest rates, ING only went up slightly while HSBC raised their rates significantly. This one move was the biggest factor that led to me opening an HSBC account. In the next post I’ll detail the HSBC sign-up process and how it all turned out for me.

- Edwin, CashTheChecks.com

I logged into my ING Savings Account today just to see the interest I’ve earned. To my surprise I saw my rate had gone up from 4.25% to 4.35%. This means if you put in 10,000 @ 4.25%, after 1 year you earn $425. Now with this new interest rate, you would earn $435. It doesn’t sound like much, but it’s a darn good rate for a savings account.

Now if only they had raised their CD accounts. I’m still seeing a 12 month CD at 5.25%. I might open an account one of these days…

- Edwin, CashTheChecks.com

I was faced with a tough choice for my online banking needs. I wanted a high interest rate, FDIC insured, but I also wanted easy access to my money along with an easy method for depositing my funds. HSBC offered me 4.65% APY for a savings account, while ING offered me 4.25% APY.

When doing my research on HSBC, I came to find out that depositing funds involved writing a check to HSBC, or depositing money at an HSBC ATM, wherever those are.

With ING however, once you have confirmed your external checking account, it is now linked to your ING account, thus adding or withdrawing money is easy and quick. So what I’ve decided to do is put some money in ING and test the waters a bit. If I like the services, I’ll put more money in ING and see that interest roll in…

- Edwin, CashTheChecks.com

Many people fear using an online bank because they wan’t a nationally known bank, with a long history, with local branches throughout the country – and the world. So it’s understandable that someone with a fear of the internet and technology will have trouble with trusting their money with an “online bank”.

However what people need to realize is that ING is a real bank, and most importantly, is FDIC insured, up to $100,000. You have the same protection as with your current bank.

So, can you trust ING? The answer is YES.

- Edwin, CashTheChecks.com

After joining ING by filling out their quick and easy application form, ING sends your current bank 2 small deposits which you have to verify with ING. You can just check online with your current bank and then input the 2 exact deposit amounts into your ING account and your bank account will be verified.

After you do that, the amount you requested to be transferred will be shown in your ING account and will begin accruing interest.

Overall the sign up process with ING was quick and painless. Something to take note of though, don’t forget your account number. After you sign up they only show it to you once, afterwards you’ll have to call their 1-800 number and verify your identity to get that number again, so be sure to write it down.

- Edwin, CashTheChecks.com

As with everyone else, I’ve seen the ING Orange Savings Account commercials. I went to check it out and saw the current rate at 4.25% for a Savings Account and 5.25% for a 12 Month CD account. After researching some other online banks for their rates and fees, I decided to open up an account with ING.

Here’s a few reasons why I opted with ING:

1. The sign-up process was real easy, I was just asked for my personal information (name, address, SSN, drivers liscense number).
2. I provided the checking account information from my current bank (name of bank, account number, routing number).
3. Just like that, I was done. I created a pin, I got my customer number, and I was all set.

- Edwin, CashTheChecks.com

Last time I checked, here are Washington Mutual’s interest rates in California
0.40% APY for a savings account. (Now isn’t that just pathetic.)

WAMU also has what’s called a Platinum Checking Account. With this account, your checking account earns interest. Depending on how much you have in the account, it earns a higher APY.

Still though, the amount is very low.

If you have $0 – $9,999 in the account, you earn a measily .15%. Not only that, but you’ll be charged a $13 monthly fee, because your balance was under $10k. To get all the way up to 3% you’d have to keep over $25,000 in the checking account.

- Edwin, CashTheChecks.com

As with most banks, they lure you in with easy to set up savings accounts, and free checking accounts. Most people seem to like it because it’s easy, comfortable, fast and secure. Most people would be surprised when they realize how much higher of an interest rate they can get by going to another bank, perhaps an online bank.

- Edwin, CashTheChecks.com

Choosing from short, medium and long term loans depends upon the needs you require funds for. Short term needs like credit card debt are easy to fund. If you are looking for car loan , home loans or other long term finances you will have to research your options. Like, mortgage is the most commonly used home financing option available for home loan seekers. It’s mainly because of flexibility that it provides in refinancing. So you don’t have to look for other home refinancing options. Mortgages are also tax deductible hence minimizing the amount paid as income tax and other taxes.

- Edwin, CashTheChecks.com