I Hate IGoBanking

Review of:

Reviewed by:
Rating:
3
On June 23, 2009
Last modified:October 10, 2012

Summary:

It looks like I made a big mistake about two months ago when I moved all my money from Dollar Savings Direct to IGoBanking.

I have left IGoBanking a long time ago, but moved back in April after seeing their actually increased the rate of their savings account from 1.85% APY to 2.12% APY, the highest yield among banks I have accounts with, while everybody else has been in the rate reduction mood for a while (see savings account interest rates history for up-to-date rates). Attracted by their good   rates, I moved all my cash savings from Dollar Savings Direct to IGoBanking in April and have transferred additional money to the bank several times since then.  Unfortunately, that good rate didn’t long. The rate was cut to 2.02% APY at the end of May and now it stands at 1.91% APY.

While I have no problem with banks changing their rates whenever they feel like it, the problem I have with IGoBanking happens when I try to move my money out of the bank. Last Friday right, I scheduled my first transfer of $15,000 from IGoBanking to my checking account at Bank of America. Since IGoBanking has a daily transfer-out limit of $15,000, I couldn’t move all my  money out at once. The first transfer order seems going through without any issue. But since then I got this error message every time when I tried to schedule another transfer:

Error: The transfer amount you have entered exceeds the daily limit for Standard Service Type.

Even though the second transfer was scheduled several days after the first one. Did I miss something here? That $15,000 is a “Daily Limit”. How can I exceed the daily limit when I scheduled two $15,000 transfers 3 business days apart? Since I was always from home since Sunday, I wasn’t able to call the bank to find out exactly what’s going on with my transfers. But if they give me any unacceptable excuse when I call, I will just ask them to close my account and send me a check. I hate dealing with banks that make things so difficult.

Get the most of your money with these High-Yield Savings Accounts:

Speaking of rates, I just received a notice from FNBO Direct that the rate of their savings account is now 1.50% APY. I hope they know how pathetic that rate is. FNBO used to offer very attractive rate. Now they just became another ING Direct or HSBC Direct. And that seems to be a trend once a bank becomes popular.

Update: I called IGo and was told that I have wait till the first transfer settled, which usually takes up to 3 business days, before I can schedule another transfer. They do, however, have another option that requires me to email their customer service to get the account upgraded to $100,000 limit. I have already sent the email. Now I am waiting for the upgrade to complete so I can transfer my money out at once. I guess I will still keep my account :)

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This post was written by Sun You can find out more about Sun and his activities on Facebook , or follow him on Twitter .

7 Responses to “I Hate IGoBanking”

  1. Tim |  Jun 25, 2009 at 4:20 pm

    i’ve never had any issues with Igo. I think it is a good deal. it doesn’t change rates as often as say ING. with that said, you have to understand their rules just like other online banks. all have time and limits and i think Igo is better than most in that respect.

  2. Sun |  Jun 25, 2009 at 8:40 pm

    Tim: I am not complaining about their low transfer limit (I noticed their limits are pretty low when I opened the account a couple of years ago and it’s indeed a problem). What I am complaining is their so-called daily limit. I checked their website, but didn’t find anything about having to wait for the previous transfer settled before scheduling another one (and what’s the point of that any way?). And every time I tried to schedule a transfer, it only told me the transfer exceeded the daily limit, which isn’t true.

  3. B. Bruening |  Nov 10, 2010 at 2:33 pm

    November 10, 2010- I was going to open a CD since their rates are way above average. However, I have never dealt with a business which is as inept, incompetent, ignorant and downright stupid as igobanking. The information I received when asking about particulars didn’t make sense, so I’d call back, get another person and received an entirely different answer. I sent 3 or 4 e-mails requesting information which were never answered. Finally I did get someone on the line who seemed to know what she was talking about. I sent a fax with the information they required, called the next day to find out whether or not they received it and was told that they didn’t but to send it again. FAX number was correct, so what was the use in sending it again. I called again to talk to someone else and lo and behold, they didn’t get the fax but “send it again” and it will then take 7-10 working days to open the account. This had been going on for about 5 or 6 days already and that was the end of it as far as I was concerned. It seems that the outfit is completely overwhelmed and doesn’t have enough qualified or trained people to handle their volume. Whatever the reason, it was one of the most frustrating banking experiences I have had up to now.

  4. John |  Nov 16, 2010 at 1:03 pm

    I saw their really high CD rate too and looked into the company. Based on what I found on other sites I went ahead and contacted them to make an application. I think they probably were rather busy because the rate was so good, but it looks like everything is back to normal and I had no problem getting accurate information to complete the app.
    The CS person was very friendly too. Did you also see they have a new promotion on their site called giftsforbanking.com ? It’s for an “iPad bundle”. Pretty cool.