I love online banking – it is one of those convenience factors that has saved my butt and my sanity multiple times.
But there is also a downfall with this convenience. When I log in to see what is in my checking account, I automatically see what’s in my savings account too. Well, that’s not bad, but what is bad is that if I think I’m going to be short in my checking account, a little Jimminy Cricket hops up on my shoulder and whispers in my ear that I have xx amount in savings and I can just do a quick transfer into my checking account and all will be well.
This might explain why I really don’t have a savings account.
So I have a new tact that I’m going to try to employ – it has served me well with dieting and it is probably the reason why my house is kind of cluttered: Out of sight, out of mind. So I went and created an online savings account from ING Direct.
I’ve read a lot about ING, Tricia from Blogging Away Debt has written about it quite frequently, as has JD Roth from Get Rich Slowly. And given how easy it seems (no fees and no minimums), I think this will help greatly with my “out of sight” mantra. So what am I saving for? Tax season – I haven’t taken enough deductions on my cab check, so I know that after a year’s worth of phone operating, Uncle Sam is going to get all grabby with my assets.
Anyone else out there using online savings accounts? How are they working for you?
I love ING, I have a tendcy to save more using this saving account vs a brick and mortar
I have this same problem and I tried using an online savings account. It was so difficult to transfer money into it that I gave up after a couple of months. I think I may try to set up a savings account at a different bank than my usual one. That may work for me.
Amber – Glad to hear it works for you. I’m thinking about making a transfer today!
Crazyliblady – Before I heard about ING, I thought about doing something like that too. Direct Deposit makes it so much easier to do something like that – have your primary checking in one bank and savings in another. Hope it works! Let me know if it does!
I love my Dollar Savings Direct account. Transfers from my bank checking are easy as pie and i am definitely able to save more. Each payday i do a transfer before i spend the money on other things.
I have had an ING account for 7 years and love it. I set up automatic transfers so that a specific dollar amount is transferred from my checking to my ING savings account the same day my paycheck goes into my checking account. By doing this, I never have to worry about logging in to make the transfer every other week and after a while, you don’t even miss the money coming out. Also, whenever I get a raise, I increase the amount to be transferred. If I find every month I have extra in my checking, I increase the amount again. You get used to living with what’s left. Try it…you’ll be surprised how fast your savings will grow!