ING Direct: What are the pros and cons?

[NoReMoRsE]

I'm thinking of opening up an ING Direct account. The current rate for us Canadians is 3.00% annually, which is much higher than my regular savings/chequing account, and also higher than my GICs.

What are the pros and cons of opening up an account with ING Direct?

EDIT: Here's a link to the Investment Savings Account page.

 

[Mr N8]

Pro:
No service fees or minimum balances.
Higher interest rate than most banks
Excellent customer service

Cons:
Haven't found any yet

 

[Mutilator]

I've had my ING account for a year or 2 now and can't find any Cons to list here. I'd say go for it and open one up... one day their rates will start climbing again.

 

[RossMAN]

Pros:
In the USA they are FDIC insured
Great rates compared with corporate banks, however most CU's will beat ING's rates
No monthly fees
Online access to your account

Cons
No checking account offered in the USA
No local branch locations
No ATM's

 

[NoReMoRsE]

Thanks guys, keep em coming.

A few more questions:

1. I like letting my money sit in an account accumulating interest. That's what I have currently with my savings/chequing account. Should I transfer most of my money to an ING Account and let that be my primary savings account?

2. If I need access to the money in the ING Account, can I simply transfer a balance back to my bank account, walk up to the bank teller and make the withdrawal? How long do you have to wait for the money to officially transfer from the ING Account to the Bank Account?

3. How do you transfer additional money to the ING Account from the Bank Account in the future?

Thanks.

 

[Storm]

ING Direct accounts accumulate interest every quarter or every year? Also isnt your ING Direct estentially a savings account with a higher interest rate? I believe you can transfer money to your checking if you need to?

 

[Mutilator]

Originally posted by: NoReMoRsE
Thanks guys, keep em coming.

A few more questions:

1. I like letting my money sit in an account accumulating interest. That's what I have currently with my savings/chequing account. Should I transfer most of my money to an ING Account and let that be my primary savings account?

- If the ING Account has a higher rate... then transfer it over and let it sit there instead.

2. If I need access to the money in the ING Account, can I simply transfer a balance back to my bank account, walk up to the bank teller and make the withdrawal? How long do you have to wait for the money to officially transfer from the ING Account to the Bank Account?

- Typically it takes 2-3 days for a transfer from my ING account to show up in my checking account.

3. How do you transfer additional money to the ING Account from the Bank Account in the future?

- You setup linked accounts when you open the account... I transfer money from checking -> savings and then back again when I need to. It's all done online... I think you can do it over the phone as well.


Thanks.

 

[InverseOfNeo]

Originally posted by: NoReMoRsE
Thanks guys, keep em coming.

A few more questions:

1. I like letting my money sit in an account accumulating interest. That's what I have currently with my savings/chequing account. Should I transfer most of my money to an ING Account and let that be my primary savings account?

2. If I need access to the money in the ING Account, can I simply transfer a balance back to my bank account, walk up to the bank teller and make the withdrawal? How long do you have to wait for the money to officially transfer from the ING Account to the Bank Account?

3. How do you transfer additional money to the ING Account from the Bank Account in the future?

Thanks.

I was thinking the exact same thing!:beer:

 

[Mutilator]

Originally posted by: InverseOfNeo

I was thinking the exact same thing!:beer:

I answered them all in my quote.

 

[Storm]

Originally posted by: RossMAN
Pros:
In the USA they are FDIC insured
Great rates compared with corporate banks, however most CU's will beat ING's rates
No monthly fees
Online access to your account

Cons
No checking account offered in the USA
No local branch locations
No ATM's

FDIC insured means all of your money is insured?

 

[Mutilator]

Originally posted by: Storm

Originally posted by: RossMAN
Pros:
In the USA they are FDIC insured
Great rates compared with corporate banks, however most CU's will beat ING's rates
No monthly fees
Online access to your account

Cons
No checking account offered in the USA
No local branch locations
No ATM's

FDIC insured means all of your money is insured?

Up to $100,000 per depositer.
ING Direct FAQs.

 

[RossMAN]

Originally posted by: Mutilator

Originally posted by: Storm

Originally posted by: RossMAN
Pros:
In the USA they are FDIC insured
Great rates compared with corporate banks, however most CU's will beat ING's rates
No monthly fees
Online access to your account

Cons
No checking account offered in the USA
No local branch locations
No ATM's

FDIC insured means all of your money is insured?

Up to $100,000 per account.

Yep.

 

[InverseOfNeo]

Originally posted by: Mutilator

Originally posted by: InverseOfNeo

I was thinking the exact same thing!:beer:

I answered them all in my quote.

Thanks, I wonder why I didnt see your post before I said that.

This savings account makes me wonder why anyone who knows about this wouldnt do it. Except for the ease of service as you get with a bank that has local branches, everything else seems to be the same or better.

 

[NoReMoRsE]

Originally posted by: InverseOfNeo

Originally posted by: Mutilator

Originally posted by: InverseOfNeo I was thinking the exact same thing!:beer:

I answered them all in my quote.

Thanks, I wonder why I didnt see your post before I said that. This savings account makes me wonder why anyone who knows about this wouldnt do it. Except for the ease of service as you get with a bank that has local branches, everything else seems to be the same or better.

Yup. I'm really leaning toward opening up an account now. I can't really see any real disadvantage.

Another question: Is the CDIC in Canada equivalent to the FDIC in America? ING Direct has CDIC protection in Canada.

 

[randomlinh]

con: rates keep falling ah well, that's how the market goes.

it's nice to have.. i auto-debit from my checking monthly.... granted it's a very small amount, but i gotta start somewhere. started w/ a $50 bonus too

 

[Mutilator]

Originally posted by: NoReMoRsE

Originally posted by: InverseOfNeo

Originally posted by: Mutilator

Originally posted by: InverseOfNeo I was thinking the exact same thing!:beer:

I answered them all in my quote.

Thanks, I wonder why I didnt see your post before I said that. This savings account makes me wonder why anyone who knows about this wouldnt do it. Except for the ease of service as you get with a bank that has local branches, everything else seems to be the same or better.

Yup. I'm really leaning toward opening up an account now. I can't really see any real disadvantage.

Another question: Is the CDIC in Canada equivalent to the FDIC in America? ING Direct has CDIC protection in Canada.

Yup looks like the CDIC = Canadian FDIC equivalent... the Canadian site doesn't give a set price though.. they just say they're a CDIC member.

 

[InverseOfNeo]

Originally posted by: lnguyen
con: rates keep falling ah well, that's how the market goes.

it's nice to have.. i auto-debit from my checking monthly.... granted it's a very small amount, but i gotta start somewhere. started w/ a $50 bonus too

Maybe the rates are falling BUT its just over 1% better than my bank that I am with now.

 

[NoReMoRsE]

Bump for additional comments

 

[Thump553]

I've been with them for well over a year, absolutely no problems. I'd give them a very enthusiastic heads up, which is pretty rare from me.

As far as transferring money, have it set up to wire transfer $ directly to your local bank account. For me, it works like this:

(1) Wed. night-go online, set up transfer from ING account to my (local bank) checking account)

(2) Thursday-transfer takes place, probably end of day

(3) Friday-cash is in my local account, ready to use (no further waiting period).

ING does limit these transfers-I think its four transfers out per month, but not sure-check their site. ING doesn't impose any charges for this nor does my bank-but check to make sure your bank doesn't charge to receive wired funds.

Also, check the Hot Deal forums-there was a bonus for signing up with ING, not sure if its still around. There was/is also a referral bonus-so sign up through a buddy if you can.

 

[NoReMoRsE]

Three more questions guys:

1. Is the principal locked in for any initial period of time after creating the account?
2. Are there fees for transferring a balance to or from my regular bank account?
3. Are newly-transfered balances locked in for any period of time?

Thanks again.

 

[JW310]

Originally posted by: Storm
ING Direct accounts accumulate interest every quarter or every year? Also isnt your ING Direct estentially a savings account with a higher interest rate? I believe you can transfer money to your checking if you need to?

ING Direct accounts accumulate interest every month. Not every quarter or year as with some accounts.

Yup... ING direct is a savings account with a higher interest rate than most savings accounts, with no minimum balance required to earn that interest.

Yes, you can still transfer money from your ING direct account to your checking account. You're limited to something like 4 or 6 transfers per month, though.


JW

 

[JW310]

ack... DP


JW

 

[elanarchist]

Originally posted by: NoReMoRsE
Three more questions guys:

1. Is the principal locked in for any initial period of time after creating the account?
2. Are there fees for transferring a balance to or from my regular bank account?
3. Are newly-transfered balances locked in for any period of time?

Thanks again.

1. Principal is locked for about two weeks at the start
2. Not from ING, but check with your bank although most don't charge ACH fees
3. Newly transferred balances have a five business day waiting period IIRC

 

[RU482]

<-- bangs head on desk and wishes he would have saved some of the wheelbarrels of cash he used to make at his old job

 

[NoReMoRsE]

Originally posted by: elanarchist

Originally posted by: NoReMoRsE Three more questions guys: 1. Is the principal locked in for any initial period of time after creating the account? 2. Are there fees for transferring a balance to or from my regular bank account? 3. Are newly-transfered balances locked in for any period of time? Thanks again.

1. Principal is locked for about two weeks at the start 2. Not from ING, but check with your bank although most don't charge ACH fees 3. Newly transferred balances have a five business day waiting period IIRC

Thanks! But what does "ACH" stand for?

EDIT: Also, I understand that the interest rate for the savings account is variable. But how variable is it (i.e. how far up or down can they change the rate)? And do they give written notice prior to changing the rate?