Going Online for Savings
Jennifer Kingson reports for the New York Times on high yield, online only savings accounts such as those offered by ING Direct, HSBC Direct, Emigrant Direct, Citibank Direct and others - and asks whether the banks offering those high rates can actually make a profit from doing so.
Still, the numbers are stunning in terms of the power of the Internet to help banks capture deposits. According to Kingson, the CEO of Emigrant says his bank had $4.5 billion in deposits before it launched Emigrant Direct - and then proceeded to gather $6 billion in new deposits over the Internet in its first year of operation.
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