ING Direct Offers Me High Interest, an IRA Program I Can Watch, and Poor Security
Written: Jun 07 '06 (Updated Nov 27 '07)
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Product Rating:
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Pros: high interest, several savings options, can talk to a live person, referral bonuses, no fees
Cons: must be linked to a "real" bank, Orange checking account promotes fraud
The Bottom Line: My orange accounts were helping me grow... until someone hacked into them.
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| jeavinl's Full Review: ING Direct |
****UPDATE****
I recently went through a very scary ordeal with ING and it pretty much does away with much of my previous opinion. To see my original review, read below. My opinion about the ease of use and high interest rate remain the same but I've lost confidence in their security measures now that they've instituted their Orange Checking account.
Basically, a few months back ING began offering its members a new feature: free checking. I did not jump on board because I was (and still am) happy with my online bill paying system through my regular brick-and-mortar bank. What I found out a couple weeks ago was that someone decided to jump on board for me. Somehow, someone hacked into my account, opened a checking account for me, transferred my ING savings into that account, began a transfer of a VERY large amount from my brick-and-mortar bank to the ING checking account, and cashed out a check totaling my ING savings and the complimentary line of credit that ING offers to their customers in good standing. You see, when you open an ING checking account, you're given an instant line of credit to use. In my case, that was $1000. But customer service mentioned that the amount depends on your credit history with ING. Regardless, I was mortified.
Customer service didn't have any answers for me, even about obvious things like "will my savings be protected and returned to me?" In fact, the first person I spoke with simply said, "Oh boy" when I explained that I thought someone had changed some of my account info (it wasn't until later that I found out about the transactions). More frustrating than that was the attitude they took with me. They made it sound like it was MY fault that someone hacked into THEIR system. I do not give out my passwords to anyone. I never save passwords on my PC. I used a very bizarre password for that account. And I have NO CLUE who could have done this. Yet, I was still repeatedly asked if I knew who might've done this. Ummm... if I did, I'd be kicking their a** right now.
I have to admit, though, that their security team representatives who I've spoken to since then have been more helpful. I still feel violated and I'm sure the hack was on their end. I haven't even looked at that account in months so I'm sure whoever did it was targeting someone who wouldn't catch on until it was too late. Word to the wise: Check your online accounts, at the least, on a weekly basis.
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ORIGINAL REVIEW (I will update when I get more time)
About a year and a half ago, a friend of my husband’s forwarded us an e-mail invitation to join ING Direct. It sounded like a scam for her to make the $10 referral bonus, but my husband liked the idea of online banking and the rate ING was offering at the time for their savings accounts (I believe it was 3.5% interest) was remarkably higher than the puny one-point-something-or-other rate we were getting at our local bank. So I opened an account with ING and now I’m on the Fortune 500 list… OK, not even close. But I am getting a 4.25% interest rate on my savings.
THE BASICS
ING Direct is an online banking institution. As far as I know, there are no ING banks anywhere in the world. There are four ING Direct banking cafes in cities in the U.S. (New York, Los Angeles, Philadelphia, and Wilmington, DE)—I have not been to any of them. But ING, its parent company, is a world-recognized financial services company that offers financial planning and portfolio investment. ING Direct allows users to open savings accounts, CDs, and mutual funds (including IRAs), as well as apply for adjustable-rate mortgages and home equity loans. Their savings accounts are FDIC-insured up to $100,000, as is the case with brick-and-mortar banks I’m familiar with. This review will focus on the two elements I’ve used: savings account and IRA.
Accounts can be opened either online or by mail. Deposits must either be transferred electronically or mailed by check. Withdrawals, in their traditional sense, cannot be made. Funds must first be transferred to a linked account in a traditional bank (only a checking account can be used) where they can then be accessed. There is a phone number for accessing information and making transfers.
There are no fees and there are no minimum balances needed. Since there are no traditional bank expenses (branches, personnel, paper trails, etc.), they pass along the savings in the form of higher interest rates. Currently, ING Direct is offering a 4.25% interest rate for their Orange savings account. Their Orange CDs range in yield from 4.75% (for a 6-month term) to 5.25% (for a 12-month term). There are nine different mutual fund portfolios to choose from, ranging from conservative to aggressive earning potential.
As of now, ING Direct is still trying to lure new customers with its referral program. When a referred person opens an account of $250 or more, he/she receives a $25 bonus deposited directly in their account and the original member gets $10. I believe there’s a cap of $200 for referrals.
SETUP
There was a link embedded in the e-mail my husband’s friend sent to us. It opened the ING Direct address, from which I selected “Open an Account” after reading through the “Learn More” section. There was a fairly straightforward online form that asked for the basics: name, SS #, address, bank name, account number, routing number, etc. I believe they also wanted driver’s license numbers because I remember having to wait until my husband came home to finish the form. I then waited for confirmation.
When I opened the account I didn’t see anywhere to input my friend’s referral code nor did I see anywhere that confirmed that I was receiving the $25 new member bonus. I’m still not sure if her account was ever credited. A few days after processing the form, a small amount ($.20 or less) was deposited in my traditional bank account. I then confirmed the amount on the ING Direct site. I’m not sure since it was a while ago, but I think I had to wait for two separate mailings to access my ING account.
Setup for my IRA fund was a more paper-reliant process. Although I could access the information and forms online, they needed to be printed, signed, and mailed the old-fashioned way. Since I had recently left my job, I decided to do a direct rollover of my 401k into an IRA. I only had 60 days to do it from my last day of work. This turned out to be a bit of a headache since it took several weeks for ING to process the information and once they did, they needed further confirmation from the holder of my 401k. In the end, it turned out fine, but I did need to make a few follow-up calls, mostly to my 401k holder.
PASSWORD PROTECTION
Since I joined, ING Direct revamped their password system. Originally there was an eight-digit assigned customer number and a PIN. They now require that same eight-digit number, a rotating question (first four digits of SS #, last three digits of SS #, etc.), and a PIN that must either be clicked on digit by digit with a mouse or typed in letter for digit (picture a phone key pad with corresponding numbers and letters). It’s a bit more complicated a log in process than I have with my Emigrant Direct account, but it seems safer. I’ve never had any issues with my password or with accessing my ING Direct account. I’m not sure how long it takes for the site to timeout after logging in, but I’m usually not booted while reading a statement or transferring funds. I was once when I was also doing something else at the same time. I think it probably timed out in 10-15 minutes.
STATEMENTS
E-mails are sent when monthly electronic statements are available. Paper statements are not mailed but can be printed or saved from the site. My e-statements go as far back as my membership. I can still access my January 2005 statement (that’s 17 months’ worth). The statements are easy to read and show total amount earned in interest from the date of membership. Since I also have an IRA account with ING Direct, my information appears on two pages. I like that it’s all there in front of me each month. It makes tracking those accounts so easy. From the statements main page, I can also access the quarterly financial report called Bright Spots.
TRANSFERS
Transfers are very easy and can be made to or from linked bank accounts. There is an orange tab at the top of the page that, when clicked, opens a transfer form (amount, to/from drop-down menu, when). The same form can be used for one-time or automatic weekly, monthly, etc. transfers. A confirmation and transaction code are generated once you click the transfer button. From my experience, transfers generally take two business days to go into effect. I use one-time electronic transfers to fund my account and to move money back to my brick-and-mortar checking account when its funds are running low. It’s been easy to use and fairly quick to process. I have not used their automated phone system or mailed checks to them for transfers so I’m not sure about the ease of use of those features. There is a direct deposit option as well.
USABILITY
Although the ING Direct site has lots of orange and the home page usually has an ad announcing some new rate or feature, it’s not flashy and it’s easy to read. The tabs and menus are intuitive and I’ve never had any problems with loading time. The dark blue lettering on white backgrounds makes the site and the statements easy on the eyes. The screen consists of a side menu of options (products & rates, tips & tools, about us, FAQ) and a top tabbed menu (my accounts, transfer money, eStatements, my links, my info, preferences, sign off). Unlike my Emigrant account, there is no place that shows last log in date on the account summary page. Recent transactions can be viewed from the account page. Archived transactions can be viewed by inputting dates to search by.
Other than my initial uncertainty about the referral bonuses being deposited, I’ve never had any problems using this site. It’s very clearly labeled and easy to read.
CUSTOMER SERVICE
The only time I contacted customer service was to find out about the referrals, which according to the person I spoke with were both deposited. I can only vouch for mine since I haven’t spoken to my husband’s friend. Customer service is easy to access. There is a phone number, an e-mail address, and a helpful FAQ page.
OVERALL
This has been my best banking experience. High interest, no fees, quick response time, all-in-one savings/IRA statement, and referral bonuses (which, unfortunately, none of my friends have helped me earn). It was easy to set up, it’s been easy to access, and it’s earning me a high interest rate. No, I can’t get rid of my brick-and-mortar account since ING does not offer a checking account and it must be linked to another bank. But I can stash away my extra savings in a great account.
Talk to a Live Person
888-ING-0727
Bank by Phone
888-ING-7868
On the Web
www.ingdirect.com
sales@ingdirect.com
By Mail
ING Direct
P.O. Box 60
St. Cloud, MN 56302-0060
ING Direct Cafes
45 E. 49 St., NY, NY; 1636 Walnut St., Philadelphia, PA; 11175 Santa Monica Blvd., Los Angeles, CA; and 802 Delaware Ave., Wilmington, DE.
Related Reviews
Emigrant Direct
Recommended:
Yes
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