ING Direct Orange Savings & ING Direct Electric Checking Account
There is a general trend for banks and financial institutions to move into positioning themselves as online banks. In ING Direct's case, it is a case of being edged out of the competition. A check on its APR rate show a 0.65% lower rate compared to two of its rival banks, HSBC Direct and Etrade Financial for a basic Orange savings account. To add insult to injury, the company is offering 3.25% APR for account balance in excess of $100,000 for its 'advanced' Electric Orange savings account, still at 0.03% lower than what HSBC Direct is paying, for a minimum balance of 1 cent. However, APR can fluctuates and this may no longer be applicable days later.
While its more complicated account structure does not help to lure savers, its member-gets-member scheme certainly does. For a minimum of $250 deposit, customers will be rewarded with a one time $25 credit and an additional $10 for referring new customers that will in turn get rewarded for their deposit. ING Direct has seen better days when they used to fight alongside big online banks with competitive rates, and using a scheme like this can only reinforce the idea that they can no longer compete head on however profitable the scheme may be. From a consumer's perspective, this arrangement can be advantageous and a strong incentive to sign up, although its long term viability is highly questionable.
Everything else about ING Direct's features matches the standard of other banks on paper. Its Orange savings account yield a 2.75% APR with no minimum balance, fees and service charge, and your savings are insured by FDIC up to a maximum amount of $250,000 per person.
ING Direct has reserved their best features for their premium Electric Orange customers, although facility like their Mastercard debit card that allow for purchases and easy ATM withdrawals from various banks can greatly benefit Orange members too. The sad thing about this is unless you have more than $100,000 with them, being an Electric Orange member is not a clever option unless you want to be earning less interest. For those who have the dosh, ING Direct offer some special features such as Electric Checks and automatic overdraft facility.
Overall, the account options can be confusing and not as appealing besides not hitting the bull's eye on what online bank customers really want. Even its special features are additional conveniences that one easily can do without. Signing up for ING Direct is relatively easier and faster than most online banks.
Originally posted 2008-10-12 10:33:52.
Related Posts
- ING Direct Orange Savings Account Review
- Total Banking Convenience with ING DIRECT
- ING Direct Bank – an overview
- Benefits – Online Banking and Online Savings Account
- HSBC Online Savings Account Review
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