Why It’s Getting Tougher to Sue Your Bank
Fifth Bank Failure of the Year - Allied Bank in Arkansas
Fed Holds Steady with Future Rate Hikes Anticipated To Be More Gradual
Best Bank Account Interest Rates - Summary for September 20, 2016Online Savings Account Study - Promos and Strong Brands Help
POSTED ON BY Ken Tumin
There are a few bits of interesting info in this study of online savings accounts. In the last year, Citibank and Washington Mutual have taken a large chunk of market share of new account applicants away from ING Direct. With high yield savings account rates higher than what ING Direct offered combined with their strong brand name, I can understand why. The study also shows Emigrant Direct losing ground in the last year. The last time Emigrant Direct offered a rate that created excitement was back in September 2005 when they bumped their rates by 0.5% to 4.00% APY. So this also makes sense
HSBC has also been taking away market share, and their 6% new-money promo seems to be helping (see my HSBC 6% post). The study shows a big jump of recent unique visitors to HSBC Direct's website and of new account openings. Hopefully, this will encourage other banks to offer similar promotions. Perhaps EmigrantDirect will get back into the game.
One thing this study doesn't show is how much market share all the other online banks are taking (such as E-LOAN, GMAC Bank, AmTrustDirect, etc.) Another problem I have with the study is that the percentages don't add up. The Q4 2006 percentages adds up to 102%. I guess this might be round-off errors. I would have thought the total might be around 90% with 10% consisting of other online banks.
Thanks to the reader who mentioned this study.
HSBC has also been taking away market share, and their 6% new-money promo seems to be helping (see my HSBC 6% post). The study shows a big jump of recent unique visitors to HSBC Direct's website and of new account openings. Hopefully, this will encourage other banks to offer similar promotions. Perhaps EmigrantDirect will get back into the game.
One thing this study doesn't show is how much market share all the other online banks are taking (such as E-LOAN, GMAC Bank, AmTrustDirect, etc.) Another problem I have with the study is that the percentages don't add up. The Q4 2006 percentages adds up to 102%. I guess this might be round-off errors. I would have thought the total might be around 90% with 10% consisting of other online banks.
Thanks to the reader who mentioned this study.
I know that ING was bound to lose deposits and customers as the norm is over 5% now. The electric checking will probably make them very attractive again. ED, I've pulled most of my funds out since they are at the same level as my checking and savings bank (Etrade complete savings). ED will need to bump there rates in order to get deposits again.
It's also worth mentioning that there are some good tax-exempt money market funds out there. For my tax bracket, which isn't that high, Vanguard's California fund is competitive with all the 5% OSAs.