The article discusses ING Direct and its newer rivals in the higher-interest online-only savings bank scene, Emigrant Direct and HSBC.
An analyst is quoted describing two different types of customers. ING Direct has attracted long-term savers while the others attract “day-savers” — like day traders, those willing to hop back and forth between banks sporting the highest rate.
But Graeber [the analyst] was cautious on big banks offering high-yield online savings accounts, saying the high rate attraction may not translate into sustainable success. She said that online accounts with ties to a bank’s physical branches don’t benefit from the lower costs associated with a pure online entity such as ING Direct.
If you want to shop around for the highest rates, this site will have the latest chart of online savigns interest rates, which now includes Capital One’s recent rate increase.
Updated February 6, 2012 and originally published August 9, 2005.