ING Direct...

[K Frame]

Anyone have an account with ING?

Any thoughts?

I'm waffling on whether I want to commit some of my money to an entirely on-line company...

[The Rabbi]

Isnt ING part of ING-Groep, which is a Dutch banking/insurance company?  That would make it a little more than just an on-line company.

[mtnbkr]

I have one.  Easy to use and good customer service.  I haven't transfered money from them back to my main checking account, but going from checking to ING is painless.  The interest rates have been much better than my own bank (for Money Market or plain Savings accounts), near CD levels, but without the commitment.  

Last week, a 1yr CD was delivering 4.44%.  INGDirect is offering 3.8% (not counting their spring special that offers an additional 4.25% or something like that until the middle of April).

Chris

[K Frame]

Rabbi,

Entirely on-line isn't really correct. They have something like 4 offices in the United States.

Which means that for all intents and purposes they are an on-line-only banking institution for the vast majority of the people who use them.

I'm not going to drive to Wilmington, Philly, NYC, or LA to deposit a check or get $20 on my way to a gunshow.

It's true that many (if not most) financial institutions are now so "wired up" that they can be virtually on-line-only for many people. Navy Federal, my primary financial institution, is certainly that way, and I do the majority of my financial business with NFCU online, but if I need to, from work or home I can be at an NFCU office or ATM (any of a number in this area) in a matter of minutes.

I've gotten a LOT more used to the on-line banking concept over the past few years. Working at NFCU and writing a lot of the marketing materials that were used to educate our members certainly helped, but I still like the ability to hit the brick & mortar if I need to.

[mtnbkr]

Just to give you an idea of the return...

Here is the results of my first transaction and the interest paid:

 Feb 28, 2006 Monthly Interest Paid                            1.43                                      502.25
 Feb 28, 2006 Winter Save Up Sale Interest                0.35                                      500.82
 Jan 31, 2006 Monthly Interest Paid                            0.36                                      500.47
 Jan 31, 2006 Winter Save Up Sale Interest                0.11                                       500.11
 Jan 23, 2006 Internet Deposit                               500.00                                       500.00

The Winter Save Up Sale Interest is only applied until mid April...

Chris

[mtnbkr]

I think Rabbi's point was that it's not a "fly by night" Internet operation based in Nigeria or something.  They're a real company with real assets.  FWIW, they're also FDIC insured.

Chris

[K Frame]

"I think Rabbi's point was that it's not a "fly by night" Internet operation based in Nigeria or something."

They're based in the Netherlands. Everyone smokes hash over there. It's worse than Nigeria.

"They're also FDIC insured."

They have to be to offer the products that they're offering to US consumers and with offices in the US. Either FCIS, NCUA, or one of the state insurance entities (in which case they couldn't actively purse nation-wide customers).

I'm looking at their website, and am liking the rates I'm seeing. They also have no minimums for their CDs, which is nice.

I can park a few thousand for a few months and earn a rate slightly higher than inflation, as opposed to a savings or checking account, which depreciates in value.

[The Rabbi]

Mtnbkr has it right.  Internet operation makes it sound like a Nigerian corp with assets tied up in a trust owned by the late dictator Abachi.  ING Groep is more like Citibank or something.  But yes, if their "offices" are mainly on line then they are really an internet bank.

[Vodka7]

ING is OK if it's still doing the $25 sign up bonus thing.  Emigrant has a much better year round rate (4.50).  HSBC has a better short term rate (4.80) and might still have a $25 sign up bonus, and the convenience of being all over NY (not sure where you live or if they have branches there.)

Read here:
http://www.fatwallet.com/t/52/437553/

And here:
http://www.fatwallet.com/t/52/519997

I've used all three, and ING is the only one not worth keeping.  The $25 sign up bonus was nice (especially considering how long it takes to actually make $25 from interest alone), but the rates are no longer competetive.  My recommendation would be to stick everything in the HSBC OnlineSavings account--especially if you have HSBC ATMs around your area.

[mtnbkr]

Good to know Vodka.  Thanks.

Chris

[TarpleyG]

HSBC online savings is at 4.80% right now.  Another option for not tying up your money but still making a decent return.

Greg