Internet Banking Questions

[FleshLight]

How come some banks manage to have higher interest rates than others? IE ING and HSBC. Does HSBC have lower overhead or something? Or greater volumes?

 

[Zim Hosein]

<-- Patiently waits for RossMAN! 😀

 

[EvilPaper]

Banking is all about securing you as a customer, and attempting to offer products that cause you too much hassle to change (or go somewhere else) once established. A high savings rate is just a lure to get you in the door. Internet Banking is another product that once established and a certain comfort level is reached, most people are unlikely to switch.

In regards to savings products, some companies may have more money available to use with promotions, some may simply NEED more new money in their door - it all depends on the financial institution.

 

[RossMAN]

I'm not sure of the exact reasons but it probably has to do with overhead.

Retail bank branches cost a lot to build/lease, maintain, staff and insure.

 

[Zim Hosein]

Originally posted by: EvilPaper
Banking is all about securing you as a customer, and attempting to offer products that cause you too much hassle to change (or go somewhere else) once established. A high savings rate is just a lure to get you in the door. Internet Banking is another product that once established and a certain comfort level is reached, most people are unlikely to switch.

In regards to savings products, some companies may have more money available to use with promotions, some may simply NEED more new money in their door - it all depends on the financial institution.

Correct me if I'm wrong but doesn't companies like ING offer better rates because they don't have any "physical" branches EvilPaper?

 

[EvilPaper]

Originally posted by: Zim Hosein

Originally posted by: EvilPaper
Banking is all about securing you as a customer, and attempting to offer products that cause you too much hassle to change (or go somewhere else) once established. A high savings rate is just a lure to get you in the door. Internet Banking is another product that once established and a certain comfort level is reached, most people are unlikely to switch.

In regards to savings products, some companies may have more money available to use with promotions, some may simply NEED more new money in their door - it all depends on the financial institution.

Correct me if I'm wrong but doesn't companies like ING offer better rates because they don't have any "physical" branches EvilPaper?

Certainly. They also know, that if you become used to their version of online banking, that you will stick around. Keep in mind too, that ING, just like HSBC is a huge company with many, many different financial avenues of business - which means they have more things to cross-sell you with and offer you in the future.

 

[ghostman]

Even with all costs being equal, they almost certainly have to provide a higher interest rate. They must make their customers overcome their fears about internet security and they are less liquid than a B&M bank.

 

[talyn00]

Originally posted by: ghostman
Even with all costs being equal, they almost certainly have to provide a higher interest rate. They must make their customers overcome their fears about internet security and they are less liquid than a B&M bank.

FDIC insured is usually enough to assure most people when banking.

 

[spidey07]

I thought ING and all those others are just small portions of overall much larger financial institutions?

As far as the difference in rates. That's profit talking.

 

[RossMAN]

Originally posted by: talyn00

Originally posted by: ghostman
Even with all costs being equal, they almost certainly have to provide a higher interest rate. They must make their customers overcome their fears about internet security and they are less liquid than a B&M bank.

FDIC insured is usually enough to assure most people when banking.

Agreed.

HSBC is a huge financial entity in Asia/Europe (formerly Midland Bank PLC and Marine Midland Bank New York).

ING is just as big.

Unless they pull an Enron, your money is safe.

 

[talyn00]

ING, world scale financeBased in Amsterdam, the ING group is one of the largest world financial groups.Although its activities are centered largely around two areas, the broad range of services it offers means that it occupies a very significant position in the market.Insurance is one of its major areas of activity. ING provides life insurance, health, car and industrial insurance, as well as reinsurance services.Its financial services provide a range of products from postal accounts in Holland, through traditional banking and business banking services, to private asset management. ING has also just launched ING direct, on-line banking for private individuals. It is worth noting that it made its name amongst the public at large when it bought Barings, the famous English bank, when it was in difficulties in 1995.Moreover, ING opted for the reinforcement of its positions on the real estate market with the acquisition, in 2002 of the American company Crow Unit.The group has locations in over 65 countries through its various companies.

From Yahoo Finance UK http://uk.finance.yahoo.com/q/pr?s=INGA.AS
INGDirect, is what you probably hear about the most, its a part of ING group.

 

[lozina]

AFAIK sometimes ING has higher rate othertimes HSBC has higher.

It's good to have both 😉