As long as it is an FDIC insured account, your principle is safe up to $100,000 (assuming this is the only account you have with Capital One). Speed of accessability may be something you want to question them on, though.

Thanks. From what I read about it, it all sounds good, but it is a big step for me.

I've used Ing Direct for savings accounts and some CD's and Sharebuilder and Vanguard online for investing for years. No problems at all. It's exactly the same as going to the bank down the street, except that you can't get funds out quite as quickly. It usually takes a couple days. For me, that's a good thing!

That's reassuring, joann23456. I think I will research Ing Direct as well as Cap One. Did you "jump right in" with all those accounts, or did you start with just one type of account at Ing? Thanks.

I've used ING's savings for over a year, and the Share Builder account, too, both with no problems.

Thanks. I will be checking ING.

Veta,

I started with a very small savings account at ING, just a couple hundred dollars. I started with Sharebuilder not long afterward. Vanguard came along years later.

Do you have any local credit unions?

If so, have you checked their rates?

They're a financial institution that's owned by the people who use it: sort of like a bank that's owned by the users.

For those of you who want to shop U.S., should I mention that ING is owned in the Netherlands?

As is Royal Dutch Shell (in the gasoline game).

Good wishes for increasingly shrewd use of your income ... and assets - I think that'll be increasingly necessary for people in our part of the world.

ole joyful

joann23456, thanks for your response. OJ, I also appreciate your response. We do have local credit unions, and belong to some of them. Their money market rates right now are very low, as are the local banks' rates. Some of the credit unions here have decent CD rates (by today's standards), but for longer terms than are offered online at the same rate. I find this all very confusing and scary, as I have very recently been widowed, and need to make all these decisions on my own. Anyway, thanks for your input.

I've used Capital One online savings for years. Was getting over 5% before the fed started cutting rates - 3% last month (I think the 3.5% is an intro). FWIW, Bankrate gives CO highest reliability rating. You will be paid interest each month, and any transfers out will take 3 business days. I am pleased with them (and my preserved principle).

I love the online accts -I've used ING & Emigrant Direct. I've recently opened a checking account with Charter One, to get the interest rate (6%) I access it online, but it doesn't have the transfer convenience of an online bank. There are also "hoops " to jump through to get that interest rate.

I have an old computer and suspect that I may have a virus or a Trojan horse on board.

So I don't use it for financial transactions: banking, stockbroker, credit card, etc. ... none of them. It's helpful in paying utility, credit card, etc. bills that I can make such paynments at the bank, with no fee, as I'm a senior.

ole joyful

Thank you all for your input. I have 4 CDs now due from my local bank/credit unions, and I am definitely going to go the online route with at least a couple of them. Stinkbone, I am glad to know that Bankrate gives Cap One such a high reliability rating. eiagaaf, I am also considering ING and Emigrant Direct, but don't know of Charter One. OJ, my computer is fairly new, with good security, but even so, I understand that there is always a little niggle of worry there.
Veta

I do on-line banking with my credit union (Navy Federal). Of course I can go to any one of their offices or ATMs in this area any time I want.

But, I have parked quite a bit of money on-line with a brick and mortar bank in the midwest -- Huntington National Bank, IIRC.

They entered into a cobranding deal with the National Rifle Association and were offering excellent rates, so I jumped aboard.

I'm very happy with the arrangement.