IGoBanking Savings Account Opened

I didn’t waste too much time before getting into action to open another savings account with IGoBanking. I didn’t my own research last week and compared IGoBanking with other three online banks that also offer 5.30 % or above APY and eventually selected IGoBanking over others for two reasons:

  1. Soft credit inquiry: though I didn’t directly gain anything, I didn’t loose anything either;
  2. ACH fund transfer and up to 20 external links: I currently have money with ING Direct, HSBC, Emigrant Direct, and Bank of America. I like to have the option to transfer money among these accounts directly.

Other features such as billpay and ATM/debit card are not really essential for a savings account, so it didn’t bother me that IGoBanking doesn’t offer these services.

The account opening process was quite simple and didn’t take much long to compete. All the information I had to provide were standard: name, address, phone number, SSN, driver license, employment, and banking info. They didn’t a credit inquiry immediately during the opening process to verify my identity. Since the account I opened is a joint account with my wife, both of us got a credit check.

At the end, I founded my newest account with only $10 as I won’t have access to my account before the login information arrives in the mail. In addition, in the following couple of days, IGoBanking will verify the banking information I provided by making two trial deposits into my BoA account. After the verification, the only thing I can do is wait for the snail mail.

Last Friday, I called EmigrantDirect to get an account verification letter (that’s what they call it, I only want a letter to show the balance I have in my account) and when they told me that letter will cost me 30 dollars, the only reaction I had was “That’s ridiculous for just a letter.” Then I tried to argue with them to waive the fee, but they told me it’s a standard procedure and other banks like HSBC also charges it. In the end, I said I can pay that $30 for the letter but will move all my $20K deposit out of EmigrantDirect if they insist on charging me the fee. They didn’t budge and I called HSBC and found that they charge $20 for the same letter. This made me want to get out of EmigrantDirect even faster.

Check out some updated discussions on IGoBanking:

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11 Responses to “IGoBanking Savings Account Opened”

  1. kk |  Jan 09, 2007 at 12:16 pm

    Gee, thats ridiculous. You would think since they have your 20k, they would waive the fee. I don’t blame you for moving your money.
    So did you ever hear anything back from free year of Money Magazine?

    Sometime last October or so I renewed my Money Magazine subscription for 3 yrs and paid about $56. I don’t know if that’s even worth it considering I see alot of the printed information on the web.

  2. The Sun |  Jan 09, 2007 at 12:50 pm

    I was apparently wrong when I assumed they could waive the fee when I threaten to withdraw my deposit. Since I have long been considering find a place with a higher rate, this didn’t really affect my decision much. The only thing that I like Emigrant is their ACH transfer which is faster than HSBC. I don’t know the execution time of IGoBanking, but that extra 0.25% is worth it.

    No, I didn’t hear anything from the magazine subscription either and that confirmation email they promised never came. I started to think this whole thing may be a scam. In my opinion, it isn’t worth it to subscribe magazines like Money for $56, even that’s for 3 years. Many articles are available online already. The only reason I brought it up is that they said it’s Free, which now seems too good to be true.

  3. jersey jen |  Jan 09, 2007 at 11:07 pm

    i’m currently using netbank for checking and money market (high yield). but it bothers me where i can’t find free local atm. although the money market is linked to checking, making it convenient to keep minimal amount in the checking amount. i’m thinking about changing to a local checking account and online savings account combo instead.

  4. The Sun |  Jan 10, 2007 at 2:53 pm

    It makes sense to have a checking account with a brick and mortar bank for fee-free ATM withdraw. Actually, many online banks (such as GMAC) also offer ATM/debit card as well and they reimburse some fees charged by other banks for using their ATM machines. However, for these online banks, there may be a limit on the number of withdraws you can make in a month.

    I used Netbank several years ago, but closed my account when they started to charge fees for low balance. Why are you still using them? Their rates, in my opinion, are at the bottom on the rate chart. You can get much higher rate for your money from other places.

  5. James |  Jan 12, 2007 at 12:52 pm

    I have been eyeing igobanking.com for a short time now, but their relatively new status has been keeping me from making the jump. Their rate IS quite tempting though, and pending a good experience from you, I will open an account. For ATM’s I am looking into a BoA account. Currently I have a local bank, but I frequently travel, and ATM fees are killer.

  6. Justin |  Jan 24, 2007 at 8:07 pm

    I signed up several weeks ago and transferred some dollars from one institution, Amsouth, to iGoBanking.com.

    During the transfer process I got nervous because it said “click here for fees for transfer.”

    I clicked the link and it opened a new window where all it explained was transfer limits. I looked through FAQ and all over the site where it explained the transfer fees (not mentioned anywhere).

    I sent an email last Friday with a ‘read receipt’ attached. The email was read Monday morning. It is now Wednesday night and I still have no response. I sent a follow up email this afternoon and got a read receipt, but still no response.

    I am concerned that this is an example of there customer service and it makes nervous and putting my money there.

    I called, and did get an answer. The woman spoke English very poorly, wasn’t very polite and seemed annoyed that I was asking her questions about the fees, which she said there were none.

    Of course we all have probably had experience talking with “John” at some big company who has no way to reach him or extension to hold him accountable to what he says.

    Apparently there are no fees right now, according to this one person. But it isn’t clear on their site, and no one responds to emails.

    Not sure I want to put my money there. Emigrant Direct might be a few points lower on the rate, but they respond quickly.

  7. Bob |  May 11, 2007 at 10:53 pm

    igobanking is such a hassle. I’ve been opening an account with them for the past two weeks.

    Two weeks ago, I applied. I had to verify my address by sending a utility bill, and I had to verify my bank account by verifying deposits. I finally got my pin today, and I logged on. Now, I find that, in order to transfer money from my bank account to my igobanking account, I have to agree to another credit check, identity verification, etc. And, I have to verify the same bank account, again. This appears to be because I had to verify my identity/bank account for igobanking, to get an account. I have to do the same thing again because they use another company for transfers.

    There is nothing unusual about me, at least, from a financial perspective. I live alone in an apartment. I’ve lived here for over two years. My credit is ok. I have a standard, individual savings and checking account at the local credit union.

    I do not recommend igobanking. I am seriously considering closing my account with them.

  8. Joey |  Jan 11, 2008 at 4:57 pm

    I have an account with Igobanking for 6 months now with no problem. When I call customer service they are usually polite and answers all questions without hesitation. Sign up was easy. Id have to say that igobanking is putting in more interest than my local bank’s savings account on a Share Cert which makes me really happy. But before joining any online savings account read the terms and policy thouroghly dont just sign up and not to expect something out of the ordinary when its in the terms and policy agreement if you did read it. I did. :)

  9. Joey |  Jan 11, 2008 at 4:58 pm

    I have an account with Igobanking for 6 months now with no problem. When I call customer service they are usually polite and answers all questions without hesitation. Sign up was easy. Id have to say that igobanking is putting in more interest than my local bank’s savings account on a Share Cert which makes me really happy. But before joining any online savings account read the terms and policy thouroghly dont just sign up and not to expect something out of the ordinary when its in the terms and policy agreement if you did read it. This is where they will list any fee’s that the bank has. :) Happy Savings.