The ING Direct Orange Savings Account has been used by many for various reasons, and has proven to be a great place for us to store our emergency savings. Having had an Orange Savings Account for about a year, I can tell you a few of the ins and outs of it and help you decide if it’s the right place to put your money. Let’s start by looking at two important reasons to have a savings account.
ING Direct Orange Savings Account
Savings accounts are good for two basic money management tasks:
- To store an emergency fund or reserves for a business.
- To save for short or long term goals. If you’re going to save money for long term goals (5 years or later), you might want to invest the money instead into mutual funds.
The Interest Rate
Currently (as of May 1st, 2012), ING Direct offers a 0.80% annual interest rate on their savings account (thanks to reader “Jackie” for the update!). Not bad! Compare that with their rates on CD’s and you’ll find the Orange Savings Account to be a great deal!
On ING Direct’s website, they compare their annual interest rate to the interest rates of a money market account (they say is at 0.14%) and other savings accounts (they say is at 0.10%). Those rates are APYs based on a deposit of $10,000 for one year from savings and money market averages from Bankrate.com as of 11/16/11.
Online Banking Experience
If you’re the type that loves to walk into a physical banking branch, then this account isn’t for you. However, if you love the ease of use of banking in your pajamas from your recliner, you’re going to love ING Direct.
The menus are crisp and clear. It’s simple to navigate and you don’t have to wonder if you’re going into the right menus.
You simply click “View My Account” and you’ll be transported to an area where you’ll have to get through several security panes.
ING Direct obviously takes security very seriously, as I can think of four safeguards:
- You must enter your customer number.
- You’ll have to answer 2 security questions (but you can choose to have your computer remember these for you).
- You’ll see your security image (if you don’t recognize it, you’ll know something is wrong).
- You’ll have to enter your online PIN code.
Transfers and Deposits
You can make an electronic link between your existing bank and ING Direct with relative ease. Once you’ve done this, you can freely move money between accounts. Moving money between accounts (also called transfers) are free of charge, but there are a few catches:
- Most deposits (once they reach ING Direct’s hands) are subject to a 5 business day hold before they can be withdrawn.
- Initial deposits (again, once they reach ING Direct) are subject to a 10 business day hold before they can be withdrawn.
I’ve never had to call ING Direct. I have a friend who has, and he said that they were pleasant to work with. I doubt I will ever have to call ING Direct, as it seems their website provides plenty of information about policies and enough “How To’s” to satisfy my curiosity.
In my mind, that’s the best customer service possible. When I don’t have to waste my time on the phone for several hours, that’s excellent customer service. Everything, just, works!
Capital One Bought ING Direct
As you may have heard, Capital One has bought ING Direct and the transition is still taking place. Hopefully, this won’t change much about the ING Direct Orange Savings Account. But if it does, I’m going to bail ING Direct for some other savings account. Of course, I’ll keep all of you updated about this.
PerkStreet Financial has stated that they are looking to add a high-yeild savings account sometime soon. Because I have my checking account with PerkStreet online, I’ll probably switch my emergency fund over to PerkStreet IF they do the right thing and give AS AMAZING BENEFITS as their current checking account.
I’m not much of a fan of credit cards, and not much of a fan of Capital One as a result. However, ING Direct still holds value for me and I’d recommend their Orange Savings Account to you if you’re looking for a place to park your money.
The Bottom Line
I highly recommend the ING Direct Orange Savings Account if you’re looking to “save your money.” Remember that it does take some time for deposits to go through, and your money will be held up for a number of days. Their interest rate is competitive, and is the main selling point for an ING Direct Orange Savings Account.
Do you have an ING Direct Orange Savings Account? What has your experience been like? Or, if you’re thinking of starting an account, ask your questions below in the comments. I’ll respond to them in a jiffy!
Helpful Hint: If you want to start an ING Direct Orange Savings Account, email me first and I’ll send you a link for a bonus offer if available!
Photo by steulot