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ING Direct Review
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Several years ago, ING Direct made a name for themselves when they introduced the Orange Savings Account. At the time, the concept of an online savings account was as foreign as its owners, Dutch-owned ING Group, and many folks wondered if the offer was a scam. At the time, I know my credit union’s savings account APY was sub-1% and here ING was offering 2.60%! It was unheard of!
I had my reservations though. First, the company was Dutch so I didn’t know if that had any implications (it doesn’t). I was new to managing my own money so I was always wary of doing something stupid (I still do stupid things). Lastly, I didn’t want to jump too quickly even with the ING Direct $25 referral bonus dangling out there. Fortunately, my comfort with all things online coupled with my inexperience pushed me towards opening an account at ING Direct and I’m glad I did.
Since then, many banks have begun offering high interest savings accounts and ING Direct has ceased to be one of the top interest rates out there… but it still has some merits and a warm place in my heart.
Account Signup
Signing up for an account takes mere minutes and is actually one of the strengths of ING Direct when ING first started. Back then, opening an account online was practically unheard of. You always had to visit a physical branch so that a teller or account representative could go through the screens themselves. Now, a quick account signup process is the norm.
Account Features
One feature that is noticeably absent from many other online banks is the ability to add new accounts as quickly. Once your first account is opened, subsequent accounts can be added in mere seconds. Everything managed through the same login, which recently benefited from a face lift, and it really does help you save more.
For example, opening new savings accounts are trivial and, given the ability to name them whatever you’d like, you can easily open an account for the purposes of a saving goal. If you have a big expense, such as a vacation, coming up in the future you can set up an account specifically for that. Once you set up an account, you can establish automatic transfers between all of your linked accounts (ING Direct accounts are automatically linked). So, you could set up a monthly transfer from your checking account to your ING Direct savings account and then intra-ING Direct transfer from your main ING Direct account to your vacation savings account. This transferring feature isn’t unique to ING Direct but the ability to add new accounts so easily is.
ING offers a CD laddering form that makes CD laddering a cinch. While the interest rates aren’t especially competitive, the 12 month CD is 3.40% APY and the 60 month CD is 4.00% APY (compared to FNBO Direct’s 3.50% APY high yield savings account), this feature is the only one of its kind I’ve seen available anywhere. When their CD rates become more competitive, I can see this form getting a lot more use.
Overall, I was very pleased with ING Direct. While their rates have lagged their competitors lately, I think the intuitive and friendly interface really puts new online banking customers at ease. I have accounts at Emigrant Direct and HSBC Direct and their banking screens look very antiseptic and austere. While you can’t judge a book by its cover, ING Direct does a great job putting the softer elements into its interface that puts someone at easy.
{ 26 comments, please add your thoughts now! }
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ING seems to be constantly overhyped by the personal finance blogs, because everyone has a soft spot remembering them as leading the high-yield online savings revolution. I love the multiple subaccounts thing (and frankly, I wonder why others haven’t imitated it yet), but I feel like I continue to use ING primarily out of sentiment rather than sensibility, given their lagging rates.
I have been with ING for 6 years now but am in the process of closing the account eventually. Why? Yes, it was nice to have subaccounts, and several CDs. However, most of my online savings accounts all have POD (payable on death) or beneficiary applications. ING does not. Even though I have a Last Will & Testament listing who has my financial accounts, ING does not have this type of safety net and don’t seem to accept my Will. Therefore I’d rather have accounts that can provide acceptance of Will and PODs/beneficiaries. I almost died two years ago of leukemia and cancer and revised a lot since then. Keep that in mind with ING.
Thank you for this review, Jim! I’m waaaay late to the ING party, but I’ve been more comfortable with the simplicity of keeping the bulk of my money at the brick & mortar bank we’ve been with for years. Lately, though, with banks becoming somewhat unreliable, I’ve been thinking of moving a chunk of our emergency fund to a different bank, just for accessibility in case the B&M bank shuts down and it would take longer to get our money out. So I’ve been trying to decide where our money should go (I wish one of our credit unions offered a high interest savings account, that would make things so much easier). ING has been at the top of my list, so I’m going to have hubby read your review. Although, after reading Gail’s comment, I’m going to have to check with our estates attorney before opening an account …
CFO: I’ve always advocated diversifying where you put your savings not so much because I’m afraid of bank failures but because crazy glitchy stuff happens. Emigrant Direct went down for a couple days with their new site design a few years ago, you can’t predict that and it’s a problem if you need that money. That’s why I keep a little cash on hand, a little buffer in a checking account, and the rest in high yield accounts (savings that is).
We used ING Direct for our joint accounts and have had a good experience with them. The online bill pay is great and as easy to use as many of the B&M banks. I also love the fact that upcoming bills are included on the first page when you select your account. I have to dig a few pages to get that info from Wachovia.
I have nothing but praise for ING I love my Electric Orange checking. It pays good interest . However I hope Congress increases the FDIC insurance limits to 250,000 or I will have to find some different banks so my money will be safer than now, with all these financial disasters and bank failures.
I’ve been a big fan of ING Direct since I opened my Orange Savings account in 2002. It was a no brainer to open an Electric Orange Checking account when they started offering that. The Electric Orange account features a tiered interest rate that beats the Orange Savings rate if you have more than $50k in the account (and now there is another tier at $100k). Their free ACH transfers make moving money around very easiy.
My only very minor issue with them is that in April they changed their policy to start charging a foreign transaction fee of 2% on foreign purchases and withdrawals using their ATM/debit card. Evidently I missed an email they sent out announcing this change.
I know a lot of people discourage moving your money from bank to bank, but with INGDirect’s falling interest rates, isn’t it a good idea to begin looking elsewhere to store your savings?
The problem with rates is that all of them are falling, I would recommend looking around for a certificate of deposit that you can lock in a good rate with.
That is a good idea… luckliy, I locked $15K in a 24 month CD with INGDirect at 4.65%, that was in Oct 08, and the rates fell right then. Whew. I was looking for comments on “DollarSavingsDirect,” a division of emigrant. They compound their interest daily at 2.25% apy as opposed to ING’s monthly compounding at 1.65% apy. Convenience of INGDirect aside, is that a better deal? Afterall, the money is just going in and sitting, no need for too many conveniences (just login and look at it from time to time). Thoughts anyone?
Congratulations on the fabulous publicity in the Chicago Tribune. I read the article this morning and went directly to the computer to check it out. As an interior designer I know how valuable that acknowledgement is. Best of luck.
Janet McCann
ING Direct is fantastic! I’ve been a customer for over a year, and I have nothing but good things to say!
Best. Savings account. Ever.
a savings account that pays no intetest? how’s that the “best ever”?
sure it’s convenient and all. but if a savings account doesn’t pay good interest, what good is it at all?
Why would one get a sign up bonus reversal?
If someone signed up and didn’t keep the required amount in their account, it happens about one in ever 10 signups based on my experience. It stinks (because no one gets a bonus, the referrer or the referee).
Seems odd as it had to have happened within the same week or so that it was opened.
Maybe they never deposited funds? Or the bank transaction was rejected? It’s hard to know.
I thought that I would only get it if they had successfully deposited the $250. Maybe they yanked it early…? I’ll have to review the terms.
I am done with ING. They have poor rates compared to some of the other choices and they just dropped a CD rate on me after I opened the CD. How can they do that when my external account was already registered? Had I known they were going to drop the CD rate on me, I would looked elsewhere in the first place. Now, I am stuck with their bogus rate and can’t close the CD without paying a penalty.
Low rates and bait and switch…..nice way to lose customers. You lost one for sure.
I’ve opened plenty (5+) of CDs with ING and have never had a “bait & switch” issue with them.
Perhaps you could have avoided this issue if you funded your ING CD directly from an ING account (Orange Savings, Elecrtic Orange, etc…) where the transfer would have been instantaneous and you would’ve known exactly what rate you were getting?
A transfer from your external account is always going to take a couple of days, even if that account is “registered.” A rate change could always happen in the interim. Basically, this just sounds like a case of bad timing.
Is ING Direct still the only online high-yield savings that offers a subaccount feature?
I’ve had an Orange Savings account with ING Direct since 2006, and I’ve had a wonderful experience.
I recently opened the Electric Orange- they day after I turned 18 and LOVE it. There’s only five possible fees you could incur with the electric orange, EVER. And none of those are really fees I would ever have. There’s no overdraft fee, you just pay a very small interest rate on the money you have to borrow which is compounded at midnight ET. And the best part is, you can set up e-mail notifications when you overdraft. So if I just overdrafted by taking $60 out of an ATM, I’ll know about it later in the day when I check my email and can easily transfer from ING savings later in that day to cover that withdrawal. And since it’s immediately available and I transferred to make my checking balance positive before midnight, no interest has to be paid!
You can easily transfer from your ING savings to ING checking and it’s immediately available (unlike if you transfer from ING savings to external bank, that takes 2 business days). If you transfer from external checking to ING Savings, 5 day hold; external checking to ING Checking, 2 day hold. The 2 day hold is the same hold you’d have if you deposited a check to your local bank that’s from a different bank.
The 10 day hold that everyone keeps complaining about is ONLY ON THE INITIAL ACCOUNT DEPOSIT. Every other bank that I’ve ever had an account with holds the deposit for that long, at least. I think US Bank held my inital check deposit for like 30 days.
The foreign transaction fee is I think 3% or it could be 2%. That’s a STEAL compared to almost every other bank. B of A charges a $2.50 ATM fee to use a non-BofA ATM plus a flat $5.00 foreign transaction fee PLUS another foreign transaction fee of 2% of the transaction.
Bill pay is SO EASY! You can even get E-Bills, which means you can view your bill right from the ING website.
Customer service is EXCELLENT. Every time I call them to ask a question (which rarely happens because their online FAQ section is so good) someone picks up the phone within 30 seconds. And there’s no annoying automated system, I think it just tells you that the call could be recorded then instantly connects to a service rep.
Sure, the savings account rates are going down, but so is everywhere other bank! The only other savings account I can find with no minimum balance that’s a better rate is an American Express online savings account.
Of course, when I discovered the bank I had to share with my friends and family. Both my siblings and my parents now have accounts and love them too. We all have the electric orange and it’s so easy to send each other electric checks, which are instantly available in the depositing account. And my parents really like the ING accounts because they can be put in the name of their living trust, so they don’t have to fill out an additional distribute on death form or whatever that is. That’s why they haven’t moved their money to AmEx savings yet.
I’m an ING Direct customer for life. I’ve had a great experience with American Express as well so I wouldn’t hesitate to move money there- it’s just that I don’t have much to move and I’ve had such a great experience with them that I would feel guilty moving money out of ING Direct.
Thank you, ING Direct, for your superior customer service, great rates, and the wonderful services you offer for such a fair cost to the consumer.
They have to keep it there for $250 days, could be they withdrew it early?
Yeah, that’s what I meant. Still seems weird though.
In my experience, that’s really the only reason there would ever be a reversal of the bonus. Do you have any reason to beleive that the person DIDN’T withdraw their funds before the required time had expired?