Online Savings Accounts: Where’s The Fine Print?

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Every time there is an issue with a bank, I have to go digging to find their fine print again. No more! I have tracked down the direct links to the Terms & Disclosures for each of the banks on my high-yield savings account comparison page – Capital One 360, Emigrant, HSBC, and VirtualBank. I’ve also highlighted some of the useful information from each. Hopefully it will serve as a good reference.

Capital One 360 – Terms & Disclosures

Generally, you can’t withdraw a deposit for 5 business days. However, when you first open your account, you won’t be able to withdraw any money for the first 10 business days. As with all non-cash deposits, interest will begin to accrue no later than 2 business days after the banking day on which the funds were deposited. (Here’s an example – if you make a deposit on a Sunday, we will process it on Monday, and interest will begin to accrue no later than Wednesday.)

…If you close your account before interest is credited, you will receive the accrued interest.

Emigrant Direct – Terms & Disclosures

All deposits will be credited to the Account and begin accruing interest on the business day of deposit. The initial deposit made to establish your Account will not be available to you for ten (10) business days. Deposits other than your initial deposit will not be available to you for five (5) business days. Saturdays, Sundays and legal holidays are not considered business days.

Amounts withdrawn from an Account will be deducted from the Account balance and cease accruing interest on the business day of the withdrawal. Saturdays, Sundays and legal holidays are not considered business days.

If you close your Account before interest is credited, you will not receive the accrued interest.

HSBC OnlineSavings – Terms & Disclosures [pdf]

Interest begins to accrue no later than the business day we receive credit for deposit of noncash items (e.g., checks). If you
close your account before interest is credited, you will not receive the accrued interest.

You authorize us to select any means to execute your Bank to Bank Transfer instructions. You understand that to effect your Bank to Bank Transfer instruction we utilize the Automated Clearing House (ACH), using applicable ACH Rules, we debit one of your Accounts and credit another of your Accounts. Once your Account has been debited, we credit our service provider’s transfer account at the service provider’s clearing bank. After our service provider and/or its clearing bank are reasonably certain that the debit will not be returned (in most cases this is usually between 3-4 banking days), our service provider will credit your Account. The sole purpose for our service provider’s transfer account is to complete your Bank to Bank Transfer requests and for performing the services within the scope of this Agreement. The service provider earns no interest on the funds in the transfer account.

23. Means of Transfer

You authorize us to select any means we deem suitable to provide your Bank to Bank Transfer instructions to the applicable financial institution. These choices include banking channels, electronic networks, and funds transfer systems. You agree to be bound by the rules and regulations that govern the applicable funds transfer systems, such as automated clearinghouse (ACH) as published by the National Automated Clearinghouse Association (NACHA). We shall make all reasonable efforts to ensure that your transfer requests are processed on time; however, we reserve the right to hold funds beyond the normal period and if any interest is earned will be the property of HSBC.

(Anyone want to tell me what the heck the above means??)

VirtualBank – Terms & Disclosures [pdf]

Additional deposits begin to earn interest on the first business day
after the date a transfer is submitted.
Transfers that are submitted after 4:00 PM EST on a business day that we are open will be
considered to be made on the next business day.

Funds Availability: A 10 business day hold is placed on funds deposited into your account during the first 30 days. Every day is a
business day, except Saturdays, Sundays and Federal Holidays. After 30 days, a 3 business day hold will apply to deposits.

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Comments

  1. Interesting. Seems like ING you lose out a few days and with HSBC.

  2. Great compilation. Would make a nice FW thread.

  3. Great post Jonathan!

  4. Hello:

    Yeah, it seems to me that HSBC is saying that they can decide to hold your money and take your interest if they feel like it. I don’t like that disclosure..
    They need to list examples of when they would do something like that…

  5. My son recently opened an account with ING Direct by transferring funds from a local bank. After the account was established an ING sales representative told him that he cannot get access to his funds unless and until he sends ING a copy of his signed Social Security card. Now he just wants his money returned to his local bank, but ING refuses to return the funds until he sends ING a copy of the signed Social Security card. How can my son get his money returned without submitting a copy of a signed Social Security card?

  6. I don’t know how old this article is, or if I missed something, but I have had an Emigrant savings account for over 5 years and it is a VARIABLE interest rate (I found out sadly). It started at almost 5.0% and is now down to .60%, which is still MUCH higher than my credit union.

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