Favorite internet bank?

[wiggin]

This is mostly a question for Americans since I imagine non-US types would have largely irrelevant suggestions.

For many years I've had an internet account with HSBC (formerly Direct, then Advance). They offered first great, then just good interest rates and I was generally happy with parking my cash savings there. Unfortunately I just looked at this month's statement and they halved interest rates. Clearly, they're planning on folding their internet banking business into their broader US business, and clearly I'm not interested in sticking with them.

So:

Which is your favored internet savings account? All I'm looking for is a safe, hassle-free place to park my cash savings while getting the best (albeit anemic) return possible. So: no fees, reasonable account minimums (say, no more than $5-10k?), easy to use, decent customer service, competitive rates. Obviously FDIC insured is a must, and I also prefer larger and better capitalized institutions (even if they are insured, getting deposits back after a bank fails is a bitch). Lastly, I'd prefer a bank that is likely to keep rates competitive for the long term - I'm not interested in rate chasing. So I'm willing to take a slight discount off of the best rates out there (about 1.25% IIRC) in order to save the hassle of shifting banks if a 'promotional' rate gets suddenly cut.

Anyone?

[Dreadnaught]

I've had a good experience with ING Direct (recently bought by Capital One). I also use Sharebuilder for my investments outside of my Vanguard mutual funds.

I'm slightly nervous about what Capital One has in store, but so I've been with ING Direct for years. They have a loyal customer base of people who are fairly low-maintenance, conservative folks who pay attention to their money but don't touch it too often. Capital One is going to think very carefully about doing anything to alienate that base.

[wiggin]

I've heard decent things lately about ING and Ally. ING's risk is with the Capital One takeover; Ally's risk is that their not-too-distant past has some serious issues (back when they were called GMAC). Both have decent rates and good marks for customer service.

I did just run across a new offering from Barclays' US operation, offering 1% on an internet account. I'm intrigued, especially since they have some real money behind them and aren't likely to fail (most of the other higher rate banks out there are smaller or shakier). On the other hand, this might just be a promotional rate to pull in customers. Hmm.

[Loki]

I used to have most of my money with ING Direct, but transferred it once their interest rates plummeted. Now their 0.8% interest rate looks pretty good.

[Loki]

Wow, now HSBC is introducing a flat $12 fee to transfer any money into their account. There goes my money.

Edit: apparently they're idiots and meant that this only applied to wires. Now their customer service people are swamped with angry phone calls. Still moving most of my money.

[wiggin]

Yeah, I just closed HSBC for good. Good riddance, I say.

[Loki]

Do you remember if they have a minimum balance requirement? I figured I'd keep a dollar there until their interest was substantially higher than ING.

[wiggin]

I don't recall; I seem to think they didn't have a large minimum balance, if any.