Wednesday, June 4, 2008

ING Direct

I finally set up a savings account at ING Direct today. As you know, part of our plan is to move money to the highest interest rate account it can go in, while being as liquid as it needs to be. We had accrued $2500 in our Money Market account, so it was time to move some of that into a higher interest account.

Since we have to pay rent tomorrow, and we have $318 on the credit card which is due on the 25th, I decided to only put in $1000 into the ING account for starters. In a week or two when rent is paid and we're closer to our next paycheck, I'll transfer another $500 in.

How accessible will our money be? From what I've read, a transfer from ING takes about 5 business days. At my credit union, I can cash in the CD at any time, and I only lose the last 60 days of interest on the CD. So, I'm exchanging urgency in an emergency situation (where I could use my credit card anyways) for lack of penalties really.

Depending how well I like the ING Savings account, I will probably open an Electric Orange checking account as well. We use an average of 5 checks a month. Any of those things which couldn't be paid with a check from ING could be paid with cash, and then we wouldn't have to worry about changing our bank account whenever we move.


Brack said...

I tried for the Electric Orange when they bought out NetBank, but I found out that there was some filter that wouldn't allow me to qualify for it... even though I've never had a credit score under 750, etc... I called customer support and they informed me that I couldn't contest it, it couldn't be overridden by a representative, and they couldn't tell me why I was denied the account. I loved ING Direct until that conversation, and now will seek out alternatives to them. The 5 day transfer is about right - sometimes it takes longer, never shorter, and they are an all-around decent company with good rates. I'm just disappointed that I couldn't stay with them, and they couldn't give me any option to stay.

Kat said...

I have an ING savings account, and I have found that it has been a great way for me to save money.

Depending on your bank the transfer time will vary. The transfer time to my credit union account is 3-4 days, and the transfer time to my main bank account has always been 2 days.

I have only had one problem with ING, but they corrected it in a manner that was very satisfying to me. I have no need at the moment for their Electric Orange account, but maybe some day in the future I will try opening one.

Rich said...

I haven't tried an ING --> Credit Union transfer yet, but the initial $1000 was transfered today (Wednesday), and I opened the account on Monday (I write some of these posts ahead of time to buffer against the unexpected).

I'm going to try a transfer tonight to see how long it takes in the opposite direction.