ING 2.2% Orange Account

[rmrf]

I was looking at opening an ING 2.2% Orange account for the little amount of savings I do have to earn more than the .00002% they are earning now. I am kind of confused about how the interest is applied to the account.

With an Orange Savings Account, you earn a variable 2.20% Annual Percentage Yield (effective 08/03/04 ) on savings every day, with a level of flexibility, freedom, and security you simply won't find at other banks

The bolded part is what I don't understand. Maybe I am reading too far into it, but does the actual interest I am earning on the account get divided up from 2.2%, or does it start from there? If it was to be broken down from 2.2%, as far as I understand it, it would be .006% per day. I'm really not sure though, and very well could be pulling this out of a hat. I would really appreciate it if someone could clear this up for me.

Thanks

 

[Ketteringo]

YG email

 

[rmrf]

Originally posted by: Ketteringo
YG email

ygpm

 

[Nitemare]

Coolness they had just bumped it up to 2.1% recently

 

[rmrf]

anyone?

 

[Nitemare]

Originally posted by: rmrf
anyone?

Most of the times banks use a different way of recruiting interest. It is rarely added daily. My Credit Union takes my average daily balance and gives an interest payment every month. I'm sure this is buries on the ING Direct website but haven't really been to interested in finding out since I get a better rate at the Credit Union.


Err...I used to. I might have to look into that.

DEPOSIT ACCOUNTS
Share Accounts Minimum Deposit* Interest Rate APY
Shares $25 1.50% 1.51%
Money Market Shares $250 1.50% 1.51%
Interest Checking $100 0.75% 0.75%

 

[Bullhonkie]

ING is currently at 2.2% APY and interest compounds monthly. You can see how much interest you've accumulated so far in the current month and that number will increase every day, but the interest is only credited to your account at the end of the month.

Hope that helps.

Edit: Just did some math on the interest accrued in my account, and 0.006% daily looks about right. If anyone wants a $25 sign up bonus, PM me with your email.

 

[OMG1Penguin]

2.2% is a horrible return. Put that money in a balanced index portfolio.

 

[CChaos]

Originally posted by: OMG1Penguin
2.2% is a horrible return. Put that money in a balanced index portfolio.

It's a savings account, and I doubt you can find a higher interest rate on one. Of course, you're probably fabulously wealthy so you probably don't know much about such plebeian things.

 

[Ranger X]

It's pretty nice. They used to give us $75 for signing up.

 

[DBL]

Originally posted by: OMG1Penguin
2.2% is a horrible return. Put that money in a balanced index portfolio.

You have no idea what you are talking about. Even a balanced index portfolio has a high degree of risk in relation to a guaranteed return of 2.2%. This makes it a bad short-term investment. I don't believe there is a better place to earn a guaranteed rate, while keeping your investment relatively liquid, at this point in time. If there is, let us know.

 

[jadinolf]

Originally posted by: DBL

Originally posted by: OMG1Penguin
2.2% is a horrible return. Put that money in a balanced index portfolio.

You have no idea what you are talking about. Even a balanced index portfolio has a high degree of risk in relation to a guaranteed return of 2.2%. This makes it a bad short-term investment. I don't believe there is a better place to earn a guaranteed rate, while keeping your investment relatively liquid, at this point in time. If there is, let us know.

Well said DBL.

 

[djheater]

Originally posted by: jadinolf

Originally posted by: DBL

Originally posted by: OMG1Penguin
2.2% is a horrible return. Put that money in a balanced index portfolio.

You have no idea what you are talking about. Even a balanced index portfolio has a high degree of risk in relation to a guaranteed return of 2.2%. This makes it a bad short-term investment. I don't believe there is a better place to earn a guaranteed rate, while keeping your investment relatively liquid, at this point in time. If there is, let us know.

Well said DBL.

Yeah, liquidity is necessary. If anything it's a little TOO easy to transfer money from ING. I've beena member for 3 years now and have NO complaints at all... They are exactly what they say they are. :thumbsup:

 

[puffff]

Originally posted by: jadinolf

Originally posted by: DBL

Originally posted by: OMG1Penguin
2.2% is a horrible return. Put that money in a balanced index portfolio.

You have no idea what you are talking about. Even a balanced index portfolio has a high degree of risk in relation to a guaranteed return of 2.2%. This makes it a bad short-term investment. I don't believe there is a better place to earn a guaranteed rate, while keeping your investment relatively liquid, at this point in time. If there is, let us know.

Well said DBL.

There are many stocks that return a dividend of greater than 2.2%. Like you said, stocks are not without risk, but most dividend paying stocks are from well established companies that are unlikely to crash. And you get that guaranteed dividend payment. Sounds better than ING to me.

 

[FrustratedUser]

Originally posted by: Bullhonkie
ING is currently at 2.2% APY and interest compounds monthly. You can see how much interest you've accumulated so far in the current month and that number will increase every day, but the interest is only credited to your account at the end of the month.

Hope that helps.

Edit: Just did some math on the interest accrued in my account, and 0.006% daily looks about right. If anyone wants a $25 sign up bonus, PM me with your email.

0.006%/day is correct (compared to my statements from ING).

 

[DBL]

Originally posted by: jadinolf
Well said DBL.

Here are some returns for index funds for the current year as of 9/9..
-1.0% DIA
+1.2% SPY
-5.9% QQQ

+2.2% (or ~2% if you average) isn't looking too bad for a short-term investment considering, huh?

 

[DBL]

Originally posted by: puffff
There are many stocks that return a dividend of greater than 2.2%. Like you said, stocks are not without risk, but most dividend paying stocks are from well established companies that are unlikely to crash. And you get that guaranteed dividend payment. Sounds better than ING to me.

Hey, I think intelligent investing in the stock market should an important part of eventually establishing financial independence. However, judging by the original posters question, would you really recommend that he park what little saving he has in one stock b/c it pays a dividend higher than 2.2%? Besides, when investing in a stock, you have to consider commissions and other costs, many of which make it difficult to invest a relatively small amount of money gradually.

Here is some information regarding the top 10 highest dividend paying stocks through 9/3

Avg Yield = 4%
YTD % = -3.9%

..meaning if you could somehow invest a small amount into all these stocks, you would be at -.1% YTD. Coupled with commissions, you would be far behind a comparable ING account.

Granted, this hasn't been a particularly great year for the market (or particularly bad either) and in general, you are probably likely to due better investing in the stock market. However, when dealing with small amounts of money that need to be liquid in the short-term, I think it would be a mistake to take the approach you recommend.

 

[Rumpltzer]

Originally posted by: puffff

Originally posted by: jadinolf

Originally posted by: DBL

Originally posted by: OMG1Penguin
2.2% is a horrible return. Put that money in a balanced index portfolio.

You have no idea what you are talking about. Even a balanced index portfolio has a high degree of risk in relation to a guaranteed return of 2.2%. This makes it a bad short-term investment. I don't believe there is a better place to earn a guaranteed rate, while keeping your investment relatively liquid, at this point in time. If there is, let us know.

Well said DBL.

There are many stocks that return a dividend of greater than 2.2%. Like you said, stocks are not without risk, but most dividend paying stocks are from well established companies that are unlikely to crash. And you get that guaranteed dividend payment. Sounds better than ING to me.

I agree that stocks are likely to pay more. I don't know if I'd be using saying things like "well established companies that are unlikely to crash" and "guaranteed dividend payment", but it's just details.

I opened an ING Direct account last month with just $2000, and I set up an automatic feed to the account from my regular checking account. I like that I can toss in a few hundred dollars every week without paying commission fees.

I don't look at it as an investment where I'm trying to maximize the return; I look at it as a savings account that pulls the highest return I know of.

 

[rmrf]

Thanks to everyone for their input. I have been looking at stocks, but i just don't have the amount it takes to buy enough volume and get a decent return. Thanks again to everyone.