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Originally Posted by ken0042
You can transfer funds to your main bank; but that takes 3 business days. If I get a call on Friday afternoon that my dad is in the hospital; I'm not going to wait until Wednesday to get there.
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I always keep $1500 in the account I have linked to my ING account for this reason. Its good if I need access to money quick, and the 1500 lets me avoid monthly fees.
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Originally Posted by ken0042
Funny thing though; shortly after closing my ING account; I got a flyer from them comparing themselves to other banks. They showed that BMO was about 0.2% lower than them. I opened a saving account with BMO and have been happy so far.
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An interest rate that is 0.2% lower can be a little misleading. You're actually making 8.7% less money with a 2.3% interest rate compared to a 2.5% interest rate, not 0.2% less.
For a very simple example compare $1000 in savings with a 2% vs. 3% interest rate. With the 2% interest you're making $20 in interest and with 3% you're making $30. So you're actually making 50% more money with the 3% interest rate, not 1% more.
Obviously that example is exaggerated to show the difference a seemingly small change in percentage can make, but even the difference between 2.3 and 2.5 can become quite large when you're making an extra 8.7% per year.
That's how I look at it anyway.