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Rates and Account Review
Last Update: March 19, 2008
ING DIRECT was not the first bank to offer a high-yield online savings account, but they were the first to make it a successful business model. Before ING DIRECT, savers viewed Internet banks as unsafe places to park money, particularly after the tech bust of 2000 took many of the pioneers to the grave.
But the financial might of ING DIRECT, has made online banking a more safe and secure experience and their marketing muscle brought the business model to the mainstream banking population.
In fact, the popularity of online banking today can be attributed to ING DIRECT's aggressive marketing of the Orange Savings account. The result of their efforts has made ING DIRECT the market leader in online banking.
When ING DIRECT started their marketing blitz, savings rates were appallingly low and ING had the only, if not most visible, high rate alternative. These days, ING DIRECT still has higher rates than many brick-and-mortar banks, but when compared to other online savings alternatives, ING DIRECT's rates are towards the bottom of the list.
Despite the lower rate, ING DIRECT has created a cult-like following comprised of customers who stick with the bank no matter how much higher rates are at competing banks. Customers of ING DIRECT love the bank's online banking interface and claim that it's the easiest and most intuitive to use. That's good because if you use ING's customer service too frequently, ING DIRECT will give you and your money the boot.
ING's business model is based on the concept that less customer service interaction requires less customer service representatives which means more profits for the bank. However, if you do need to contact customer service, you can expect to receive some of the best support in the industry.
No Minimums and No Fees
The buzz that caught everyone's attention originally was that ING DIRECT offered one of the highest savings account rates with no minimum balance requirements and no monthly fees. Before that point, it was unusual to have the words “bank,” “no minimums,” and “no fee” referring to the same account. The no minimum and no fee feature remains, but unfortunately for ING, it's easy to find the same no fee and no balance features with better rates elsewhere.
How to Transfer Money
ING Direct uses the linked account system where the Orange Savings Account is electronically "linked" to a customer's current checking account at another bank. To transfer money between the two accounts, users only need to log on to ING Direct's online banking system and make the transfer from there. Customers can link up to 3 personal checking accounts and transfers are fee free.
$25 Referral Bonus
Perhaps one of ING DIRECT's smartest feature is the referral bonus. After signing-up for an account, customers can earn a $10 bonus for bringing new customers to ING. The new customer will receive a $25 bonus for opening a new Orange Savings account using the referral bonus invitation. Who doesn't like earning more money when they earn money?
| | Balance | APY | Interest Rate | $1.00+ | 3.00% | 2.96% |
| www.ingdirect.com
800-ING-DIRECT
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Minimum Deposit
$1 | Monthly Fee
None | Minimum Balance
$1 | Compounding
Monthly |
Electric Orange Checking
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