We are set to sell our current house and buy another one later this month. We will be putting 20% down on our new house but we will still have around $28,000 left from the sale of our current home. Our plan is to only put down 20% because we will be building a house on the land in about 1 1/2 years. We want to have as much liquid as we can for building a house because we may have problems with a construction loan. The reason I think this is because my husband plans to do a large majority of the work himself. From what I have researched, most construction loans don't allow this because they want to make sure that the house gets built and in a timely manner (usually 6-9 months).
Currently, I have a couple savings accounts set up. I have 2 savings accounts with my regular brick and mortar bank that I have our checking account at. I keep around $10-15K just in case. I also have a separate savings account that is linked to my business checking at another bank. These aren't actually set up as business accounts but I use them for that purpose. I have an online savings account at ING. There is about $6,000 in there that I would usually use to pay our property taxes and insurance for the year.
For the $28K coming up, do I stay with ING with their 1.1% or do I switch to another online bank like Ally or Sallie Mae. I know that Sallie Mae is currently offering 1.4% on their savings accounts and Ally is offering 1.24%. The difference for a year on a deposit of 26K is only $78 per year. Is that worth it to switch? ING was at 3% when I started with them and they dropped their rate shortly thereafter. There's no telling that Sallie Mae won't do the same thing.
Does anybody bank with Sallie Mae or Ally? What would you recommend?