I am tired of getting boned by Bank of America on my money market savings account, which has fallen to .3% interest. That’s three tenths of one percent annually. So I am seeking an alternative that will give me liquidity (no CD’s please), relatively high interest, and no fees or other charges.
I am looking at the Orange Account at ING Direct, which pays 4.5% annually, gives me access to my money anytime, and has no fees or charges, and is FDIC insured.
Does anyone else use ING Direct? How is their service? Any problems?
Wow! The Canadian ING Direct is currently only offering 3.5% on savings accounts (even US$ ones), and 3.6% on GICs. Hmph!
Now, to your question - I’m delighted with the service at ING Direct in Canada - I assume procedures are similar with them south of the border? They freeze money that goes INTO your account for a week in most cases, but I have never wanted to take out money less than a week after I put it in. Money going OUT of my ING Direct account takes two business days to show up in my chequing account; again the delay isn’t enough to make me care; if I did care I’d get a bank card with them.
With recent changes on their web pages there has been less and less of a need to talk to a lowly human for anything, which is fine by me! I much prefer to do everything possible by computer (so, I’m antisocial).
Since you’re south of the border, take the above with a grain of salt; however, you should certainly check into them!
I’ve had a savings account with the UK branch of these people for about three years now. I’m extremely happy with it. Interest rate varies with the BoE’s interest rate, but is 4.5% at the mo and has always been in the region 4-5.5%.
Just to give you an idea how happy I am with it and how important I think it is to proselytise for it: it’s just cost me $14.95 to tell you about it!
(I guess I’d better make some more worthwhile posts in 2007 huh)
I have to agree with all the nice things folks have said, but I need to add that should you want to hook up **another ** checking account to transfer funds to, it must be done via snail mail. That can take about a week. The one from which you transfer the original amount from will automatically be hooked up from the get go.
Other than that, I’m tickled at the service and the return on my savings account. The rates go up some every few months and they automatically apply it to your account. Then they send you an email and you get a little boost for the day. I don’t know what kind of liquidity you require but they have 9 month cd’s as well.
If you would like, I’ll send you an invite from my account which will earn you a $25 bonus if you deposit at least $250 to open your account, should you decide to. (I get a $10 bonus as well, so this is a selfish thing on my end!) Works the same as a Gmail invite, only lucrative.
You asked for downside so that is what this post is - based on your descriptions it sounds like this might be a good deal for you. The one drawback to having an Orange Savings Account for me is the availability of funds:
You are limited to six withdrawals per month.
Also, as** Nawth Chucka** said any withdrawals from your Orange Savings Account (not in ING Direct) to your linked checking account can take a few business days. As such, you do not have instantaneous access to your money.
I love ING. But then, I don’t use it for day-to-day banking, but for what it’s marketed for–savings. So needing to transfer money in and out of ING frequently isn’t an issue. I do have an ATM card for ING, which I never use, and don’t even keep in my wallet. It’s a savings account; I don’t want access to my money that easily.
Being said, when I do need to pull a chunk out of ING, it’s simple and takes a few days. So I use it for property taxes, big purchases, stuff like that. It’s also easy to set up an automatic savings program. I get it to take a mere $10.00 from my regular bank account twice a month. I don’t notice the money leaving, but it slowly accumulates.
The website is easy to use and has good security features. The folks on the phone are helpful and pleasant. I get paper statements as well.
I got $20.00 bonus just for setting up the automatic savings plans I have in place. I have my RRSP there, and a GIC. I would love USA rates on interest, but compared to Canada’s big banks, the interest rates kick ass.
ING actually makes saving money FUN, because the interest is actually… there. And it’s easy to open up secondary accounts for specific savings goals. I seriously go and look at my accounts the minute it’s the start of a new month so I can see what my interest was for the last month.
HSBC Direct is currently offering 5.05%. I went with them simply because they were the name I remembered Clark Howard mentioning during one of his shows. Like Savannah, I use it for savings, and not day-to-day banking.
I have that account linked to my checking account and automatically put a set amount into the HSBC account each week. So far, so good.
I don’t bank with them myself, but my parents have an account with them, and they seem to be happy with it. For their account, they are guaranteed at least 3% annual return but it can go as high as 8%, based on stock market performance. I believe this is a CD so it wouldn’t suit the OP, but for their age and needs its great for them.
I don’t have any experience with ING Direct, but Citibank has an e-Savings account that has a 5.00% APY, half a point better than the one from ING Direct.
Canadian Dopers may be interested to know that PC Financial interest plus savings offers 3.75%, a little bit better than ING(3.5%), and if you already bank with them as I do, electronic transfers between chequing and savings accounts (and loans and whatnot) is fast and easy.
We have an Orange Savings account, and we love it.
You have to love a bank whose actual branch in Santa Monica (until recently, their ONLY branch anywhere) is a coffeeshop straight out of a 1970 sci-fi movie where your barista is also your teller.
That said, we’ve noticed that Emigrant Direct has higher rates and we may switch.
This past month’s (DEC 06) Consumer Reports listed several prominent online banks and their yields as of October:
Apple Bank for Savings Grand Yield Direct: 5.25% (No check writing) Capital One Direct Banking: 4.8% (Free ATM card) Citibank Direct e-Savings Account: 5.0% (Linked Checking Account; Free ATM/Debit card) Emigrant Direct American Dream Saving Account: 5.05% (No check writing) HSBC Direct Online Savings Account: 5.05% (Free ATM card for use with savings account) ING Direct Orange Savings Account: 4.4% (No check writing)
They also recommended Bankrate for up-to-date information on yield.
^ What they said. Great service, good interest rate, but remember that access is not instantaneous. Couple’a business days per transfer, and you will not be able to withdraw money for 1 week after depositing it.
I highly recommend them, very easy to set up the account and easy to access online and free checks.