Comments on: Stupid account requires $10,000 for $25 bonus, and I mock them http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Fri, 19 Mar 2010 05:24:42 -0700 http://wordpress.org/?v=abc hourly 1 By: Juan Perez http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-75681 Juan Perez Wed, 01 Oct 2008 00:18:22 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-75681 I also have and ING account, but it only yields 3.0 a year. There are other institutions that no only offer no frills accounts, but are liquid and no minimun balance: Washington Mutual (now J.P Morgan's Chase) pays 4.00 annual yield, 33.3334 higher yield than ING and has a huge advantage over any Savings account, their online savings account is linked to a free checking account, in which you can keep one dollar only, and write checks against it, moving funds from the savings account into the checking first, the checks are free, the transfers are also free, and as all banks, it is FDIC insured up to max allowed by Law. Single person 100K married with two different accounts 100 K each. or if you have children you can also be insured for each one of them for extra 100K up a grand total of 600 Thousand dollars. How does ING compare to this? Very poorly! Thanks, and God bless you all. Juan Perez I also have and ING account, but it only yields 3.0 a year. There are other institutions that no only offer no frills accounts, but are liquid and no minimun balance: Washington Mutual (now J.P Morgan’s Chase) pays 4.00 annual yield, 33.3334 higher yield than ING and has a huge advantage over any Savings account, their online savings account is linked to a free checking account, in which you can keep one dollar only, and write checks against it, moving funds from the savings account into the checking first, the checks are free, the transfers are also free, and as all banks, it is FDIC insured up to max allowed by Law. Single person 100K married with two different accounts 100 K each. or if you have children you can also be insured for each one of them for extra 100K up a grand total of 600 Thousand dollars. How does ING compare to this? Very poorly!
Thanks, and God bless you all.
Juan Perez

]]> By: Danny http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65828 Danny Mon, 07 Jul 2008 02:28:15 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65828 I notice that Washington Mutual is never mentioned in your banking comparisons. They typically have slightly better interest rates and the only catch I can see with WaMu is that you have to open checking and savings accounts at the same time to avoid fees. Is there something I'm missing? I notice that Washington Mutual is never mentioned in your banking comparisons. They typically have slightly better interest rates and the only catch I can see with WaMu is that you have to open checking and savings accounts at the same time to avoid fees. Is there something I’m missing?

]]> By: Jim http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65679 Jim Fri, 04 Jul 2008 17:54:13 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65679 Ah forget it, thinking that you misunderstood his post made me misunderstand yours. Disregard my previous comment. Ah forget it, thinking that you misunderstood his post made me misunderstand yours. Disregard my previous comment.

]]> By: Jim http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65678 Jim Fri, 04 Jul 2008 17:52:43 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65678 Ramit, I think Mike is saying he earns $300 MORE by rate-jumping than by sticking with one account, not that he only earns that total each year. Ramit, I think Mike is saying he earns $300 MORE by rate-jumping than by sticking with one account, not that he only earns that total each year.

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65616 Ramit Sethi Thu, 03 Jul 2008 18:54:26 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65616 Good call, Observer. And actually, I could advertise Capital One's services, but I don't like their bank accounts, so I don't. I definitely take your point about credibility. It's definitely something to consider (and is why I didn't run ads on this site for 3 years...until late last year). Thanks for clarifying. Be sure that when I mention a service in one of my posts, I really mean what I say, whether it's positive or negative. Good call, Observer. And actually, I could advertise Capital One’s services, but I don’t like their bank accounts, so I don’t.

I definitely take your point about credibility. It’s definitely something to consider (and is why I didn’t run ads on this site for 3 years…until late last year).

Thanks for clarifying. Be sure that when I mention a service in one of my posts, I really mean what I say, whether it’s positive or negative.

]]> By: Observer http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65613 Observer Thu, 03 Jul 2008 18:12:45 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65613 I think the point of the previous poster is: since the ING ad is displayed on this blog, then Ramit gets money if someone clicks on the ad. In that case, he is not giving impartial advice, when he knocks another bank in favor of ING. Especially when if he had taken a look, he would've seen Cap One offers a different bank account with no minimum required at the same rate as ING. Same conflict of interest as Wall Street promoting stocks that they benefit from. Makes the reader question the validity of the advice. I think the point of the previous poster is:
since the ING ad is displayed on this blog, then Ramit gets money if someone clicks on the ad. In that case, he is not giving impartial advice, when he knocks another bank in favor of ING. Especially when if he had taken a look, he would’ve seen Cap One offers a different bank account with no minimum required at the same rate as ING.

Same conflict of interest as Wall Street promoting stocks that they benefit from. Makes the reader question the validity of the advice.

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65566 Ramit Sethi Thu, 03 Jul 2008 04:37:10 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65566 Mike: If you were smart enough to sock away $40k in an emergency fund (which is really impressive, btw), I bet you're smart enough to spend your time doing something better than earning $300 year -- something that will sustainably let you earn much more. You're only earning $0.82/day doing that! How about spending the same time optimizing your asset allocation? That step alone is probably worth thousands per year. Or starting a side business? Have you considered reading 5 new books about personal finance, entrepreneurship, psychology, whatever? Or even spending those few hours with your family? I don't know what you value, but in my eyes, any of those things would produce more value than $300/year...especially for someone who's so far ahead of everyone else, like you are. This is just my 2 cents...~1/40th of what you earned today (sorry, couldn't resist). Mike: If you were smart enough to sock away $40k in an emergency fund (which is really impressive, btw), I bet you’re smart enough to spend your time doing something better than earning $300 year — something that will sustainably let you earn much more. You’re only earning $0.82/day doing that!

How about spending the same time optimizing your asset allocation? That step alone is probably worth thousands per year. Or starting a side business? Have you considered reading 5 new books about personal finance, entrepreneurship, psychology, whatever? Or even spending those few hours with your family? I don’t know what you value, but in my eyes, any of those things would produce more value than $300/year…especially for someone who’s so far ahead of everyone else, like you are.

This is just my 2 cents…~1/40th of what you earned today (sorry, couldn’t resist).

]]> By: Devin Reams http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65565 Devin Reams Thu, 03 Jul 2008 03:55:24 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65565 The point still remains, why go to BAC or Chase when there are banks dedicated to providing me with a great interest rate? PS: I can go to WaMu and get that rate... and I do. Without 10 grand in the bank. ;-) The point still remains, why go to BAC or Chase when there are banks dedicated to providing me with a great interest rate?

PS: I can go to WaMu and get that rate… and I do. Without 10 grand in the bank. ;-)

]]> By: Tage http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65563 Tage Thu, 03 Jul 2008 03:40:48 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65563 @Igor: I too am wondering what you do not like? You said you liked this site because of its "alternative" investment ideas. Well, many would say that this CapOne account is a great idea, when in fact you can get comparable rates, or more, with a bank with no minimums and no strings attached. @Igor: I too am wondering what you do not like? You said you liked this site because of its “alternative” investment ideas. Well, many would say that this CapOne account is a great idea, when in fact you can get comparable rates, or more, with a bank with no minimums and no strings attached.

]]> By: Mike http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them/comment-page-1/#comment-65562 Mike Thu, 03 Jul 2008 03:38:11 +0000 http://www.iwillteachyoutoberich.com/blog/stupid-account-requires-10000-for-25-bonus-and-i-mock-them#comment-65562 Ramit, you really need to spell out your audience on this one, i.e. say this is only applicable to people who have under $10k in their savings. More realistically, a 6 month emergency fund for a family is somewhere in the $40k range (at least that's the size of our fund). I'm one of those rate-chasers, so I've consistently been earning anywhere between 0.65-0.85% higher than my operating money market account at GMAC, which I use to keep about 1 months of expenses in. That's an extra $300/year in interest, which is definitely worth changing banks every 4-6 months for me. Note my GMAC account is constant -- I only move my emergency fund around when there's a new rate worth switching to. Ramit, you really need to spell out your audience on this one, i.e. say this is only applicable to people who have under $10k in their savings. More realistically, a 6 month emergency fund for a family is somewhere in the $40k range (at least that’s the size of our fund). I’m one of those rate-chasers, so I’ve consistently been earning anywhere between 0.65-0.85% higher than my operating money market account at GMAC, which I use to keep about 1 months of expenses in. That’s an extra $300/year in interest, which is definitely worth changing banks every 4-6 months for me. Note my GMAC account is constant — I only move my emergency fund around when there’s a new rate worth switching to.

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