No. of Recommendations: 3
TIAA has a new online banking service that they (shockingly!) decided to call TIAA Direct. Currently they are paying 1.25% on deposit accounts.

My current school's 403(b) plan is with TIAA-CREF, so I decided to open an account and check it out. I opened the account about 10 days ago and have been very happy with the speed of service. The layout of the web site is good; a few things could be better, but it is easy to navigate and it is not terribly cluttered with ads.

Currently, I have accounts with Emigrant Direct (all but empty), Dollar Savings Direct, and ING Direct. All are fine, but...

1. Emigrant's rates are _never_ as good as Dollar (by design);
2. ING's rates have been better than Dollar for quite some time, but who knows what will happen with Capital One owning them. (My feeling is that little will change, but rates might tend to creep down a bit relative to some other sites.
3. Right now, TIAA has rates that are dramatically higher than ING. My guess is that this is temporary until they hit some level of critical mass in their deposits, but TIAA-CREF is such a good organization that I would expect them to remain strong for the long-term.

Anyone else have any thoughts?

Acme
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No. of Recommendations: 1
TIAA has a new online banking service that they (shockingly!) decided to call TIAA Direct. Currently they are paying 1.25% on deposit accounts.

. . .

3. Right now, TIAA has rates that are dramatically higher than ING. My guess is that this is temporary until they hit some level of critical mass in their deposits, but TIAA-CREF is such a good organization that I would expect them to remain strong for the long-term.


Considering that their CD rates are at 0.90% APY for 1 year and 1.06% APY for 2 years, I'd say that you're right about the 1.25% on high yield savings being temporary.

It's tempting to open an account there, but I have to think about whether this is just a dance to get a little more temporarily, then have an account to unwind when they get to their desired size.

Patzer
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It's tempting to open an account there, but I have to think about whether this is just a dance to get a little more temporarily, then have an account to unwind when they get to their desired size.

I agree with Patzer. Currently I get .85% on my Savings so a .4% increase on say $25K amounts to only a $10/year increase less income taxes. Not worth the trouble and time for this Fool.

Rich
Arizona
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I've had checking & savings accounts with TIAA-CREF for many years, but for the last couple years I've left my balance at $1 in each of those accounts.

One thing I really like is the option to deposit a check by scanning the front & back with my scanner. Of course now I can use my iPhone, but before I had my iPhone, TIAA was the only bank I used that allowed me to use my scanner & computer.
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I agree with Patzer. Currently I get .85% on my Savings so a .4% increase on say $25K amounts to only a $10/year increase less income taxes. Not worth the trouble and time for this Fool.

Actually, it would be a $100 difference. That still might not be worth the time/trouble, however.

Acme
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Actually, it would be a $100 difference

You're right Acme .... my typo. But as I said its still not worth the trouble and time. YMMV

Rich
Arizona
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Anyone else have any thoughts?

FWIW, Clark Howard was speaking of this specific bank as a good option for savings on the radio today...
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