pros/cons with ING direct savings acct.?

[LordSnailz]

As many of you guys already know, ING is offering a 2% APY Orange Savings Account - No fee and No minimum. Just wondering if there are any pros and cons with throwing my money in there. I have about 40-50k or so.

Thanks in adv.!

 

[freebee]

Cons-its only 2%....not something you'd want to lock up 40-50k in when there are much better returns for a similar amount of risk....unless you need the cash righ away.

 

[Riprorin]

Originally posted by: freebee
Cons-its only 2%....not something you'd want to lock up 40-50k in when there are much better returns for a similar amount of risk....unless you need the cash righ away.

What investments are you refering to? CDs?

 

[Dissipate]

Two percent? That will hardly keep up with inflation. You would be better off with mutual funds.

 

[BlueWeasel]

Originally posted by: freebee
Cons-its only 2%....not something you'd want to lock up 40-50k in when there are much better returns for a similar amount of risk....unless you need the cash righ away.

Yeah, considering the amount you are planning on putting in there, I'd probably look for something with a little better return.

Unless, this is money that would otherwise sit in a typical bank savings account with only 0.50% interest or less. Then ING is the way to go.

 

[DaWhim]

pros
use it as a hub, if you have more than 2 checking accounts with different banks.
2% is a pro, if you don't have much time and knowledge to invest.
internet bank, no paper.

cons
when you want to link you another checking account, you need to send them a check for security reason. (you don't want someone drain your saving in 1 night)
need to wait 7 days till you can transfer the money back to your checking account.

 

[DaWhim]

Originally posted by: Dissipate
Two percent? That will hardly keep up with inflation. You would be better off with mutual funds.

you do know that most bank don't pay you 2% right? beside you can get your money back in 1-2days from ing. I would say it is great to put $3k in it for emergency fund

 

[Dissipate]

Originally posted by: DaWhim

Originally posted by: Dissipate
Two percent? That will hardly keep up with inflation. You would be better off with mutual funds.

you do know that most bank don't pay you 2% right? beside you can get your money back in 1-2days from ing. I would say it is great to put $3k in it for emergency fund

I know that. But putting 40-50K in there is not worth it. With 40-50K a LOT more investment opportunities are opened up. Mutual funds, stocks, maybe even some real estate.

 

[krunchykrome]

If your considering throwing 40K-50K in a savings account, you might as well keep it under your mattress. I don't care if ING is offering 2%. You have so many other investment options depending on what your looking for. And if you want to be as safe as to putting it into a savings account, you might as well throw it into one of ING's longer CD's to get a better interest rate than 2%....I still dont think it's a good idea.

 

[DaWhim]

Originally posted by: Dissipate

Originally posted by: DaWhim

Originally posted by: Dissipate
Two percent? That will hardly keep up with inflation. You would be better off with mutual funds.

you do know that most bank don't pay you 2% right? beside you can get your money back in 1-2days from ing. I would say it is great to put $3k in it for emergency fund

I know that. But putting 40-50K in there is not worth it. With 40-50K a LOT more investment opportunities are opened up. Mutual funds, stocks, maybe even some real estate.

oops....sorry, I really missed his 40-50k. I thought open ING just for saving.

 

[tk149]

It took me two days to transfer funds from my Ing Savings account to my regular bank account through ACH. Otherwise, no probs.

 

[LordSnailz]

thanks for the replies, I'm looking for a place to put my money in for about 6months and then take a huge chunk out for a downpayment on a house ... so afterwards I'll probably end up with about 5k that will be my savings.

Where else would you put your money for savings? I'm putting my money onto my 401k, Roth IRA and SPP; after cc payments, rent, food, etc. I still have some money left ... any good suggestions where to put it?

 

[floccus]

Dude, seriously, if you have 40-50K sitting around, get a financial planner and let them set you up sweet. If not the get a Money Market Index. General rates of return are about 4-5% and you're money isn't tied up at all, you just can't use it like a regular account, only for big withdraws (House...) The 5K you'll have left should fulfill minimums.

BTW, I've had an ING acconut since the rates were 4.5%, and its great...

 

[Jgtdragon]

I am considering Ing Direct Orange as well. It beats saving it in saving account anywhere.

 

[StageLeft]

Other than the amount you listed, ING is great. I've not withdrawn any yet, so for all I know I'll never be able to see my money again (), but it is FDIC insured, and works perfectly. I opened mine up back in october and once I hit $5k I'll have to think of something more productive to do with it, because any more than that in a savings account will keep me up at night thinking on the money I'm not making.

 

[Jgtdragon]

What do you guys do with 40-50k if not in saving? Invest Stock? Stock is a gamble. Maybe cds, but flexible of pulling the money out is a hassell.