Anyone using an Online Bank for savings?

[Kalindras]

I'm looking at trying out SmartyPig...they seem to be as good (or better) than anyone else, and they're giving a little over 2% on a savings account. I'm given to understand that this currently almost unheard-of in a simple savings account.

So, I'm wondering, is anybody out here saving with an online bank? Who are you using? What kinds of experiences have you had with them? My wife and I are desperately trying to build that customary two-months' wages worth of savings, but it's REEEEEALLLY tough. Even though we both work full-time, we're just about living paycheck to paycheck, and that makes me VERY nervous. We have very little debt (other than our mortgage, which we're looking to refinance), so that's a plus. But other than a few CDs, we've got pretty much zilch. We put some out of each paycheck in savings, but we wind up pulling it back every month. Every time we get a chunk of cash, we wind up with an immediate, coincidental emergency expense, it seems (transmission, health emergency, home repair, etc....stuff you can't just pass up or ignore).

It's maddening. We're thinking that if we put the money somewhere out of sight, via automagick withdrawal, we won't notice the loss and therefore won't think of it when we spend.

Y'all's thoughts?

Thanks in advance for your time, folks.

 

[ronsec]

I've been using Ally Bank for a few years now with no problems (they used to be GMAC Bank). I have savings and CDs with them. Anytime I've had to call customer service they've been helpful, knowledgeable and polite. Works for me.

 

[Gollnick]

Why stop with your savings account? I moved all of my banking to my investment firm's private bank several years ago. It's all online. I was a bit skeptical at first, but I love it now! Between online bill paying, direct deposit, online banking, ATMs, and a really great 800 number, everything is great, There are several good, open-to-the-general-public online banks now. They're fully FDIC insured, and, since they're not building and staffing and maintaining a branch office every ten blocks, they are a lot cheaper while actually giving better service.

 

[65535]

Why stop with your savings account? I moved all of my banking to my investment firm's private bank several years ago. It's all online. I was a bit skeptical at first, but I love it now! Between online bill paying, direct deposit, online banking, ATMs, and a really great 800 number, everything is great, There are several good, open-to-the-general-public online banks now. They're fully FDIC insured, and, since they're not building and staffing and maintaining a branch office every ten blocks, they are a lot cheaper while actually giving better service.

Ten blocks? Around here BofA is averaging 2-3 blocks at best (or is that worst).
BofA's online banking has been good to me, always nice to be able to go into the branch and talk with someone, and use their feeless ATM's.