Choosing Which Bank To Go With
Making Money

Choosing Which Bank To Go With

Alright, so the first thing I will need to do is find a bank specifically for this test. Normally when choosing a bank I would place heavy emphasis on things like customer service or how accessible it will be in depositing and withdrawing funds, but for this the main factor will be who offers the highest interest rate without having a lot of fees or stipulations. So far, three banks have come into mind.

The first one that just caught my attention recently was HSBC as apparently they are offering an interest rate of 5% on its Direct Savings Account plan for anyone that signs up between July 10, 2007 to October 10, 2007. The first fine print was that it is only available on balances up to one million which wasn’t exactly a bad thing since I am starting with zero anyways. I was almost inclined to go with this until I read the other fine print saying “After October 10, 2007, the interest rate will revert to the current regular rates offered on the Direct Savings Account”. From what I read, the regular rate is 3.5%.

The next bank that came to mind is ING Direct as high interest is pretty much the way that bank advertises itself. I quickly went over the information on the site and it seems like they too are having a promotion rate where their rate is 4.25% for account holders between June 1, 2007 to August 31, 2007. Similarly as HSBC, the regular rate is 3.5% it seems.

The last bank is PC Financial as apparently they offer an Interest Plus Savings account where balances up to $1,000 will earn you 1% and anything over that is 4%. It also has some kind of anniversary bonus where the rate can go up depending on how long you have been with them and how much you have in the account. I was normally a little weary about this bank as I have heard that this seems to be the hardest bank to get support from when you need it. I was thinking it might be a factor too if I have to deposit checks that were say in a different currency and something went wrong.

From my general overview too, all of them seemed to claim to be a no fee bank solution for what I would do with it. So, these are probably going to be my three choices to choose from unless something else comes up and I’ll probably decide over the weekend.

2 Comments

  • Angie 8/11/2007

    I have an account with each of those banks.

    I love PC Financial because:
    1) Their rates are consistently high.
    2) They are really, really easy to bank with.
    3) You can use any CIBC bank machine to get to your money.
    Drawback is the fact that there is no actual branch you can go to.

    I love ING Direct because:
    1) They are really fast with their bank transfers (same day or next day).
    2) Very reliable.
    3) Great customer service.
    4) Very easy user interface.

    I’m not happy with HSBC because:
    1) Very confusing set up process.
    2) Their online banking is also kind of difficult.
    But I still bank with them anyway because their interest rates (even though it’s promotional) is higher than the other banks right now.

  • Alan Yu 8/11/2007

    Thanks for the breakdown Angie. That’s actually some useful information I’m sure that others will benefit from as well.

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