Orange Savings Works Great
Written: Feb 09 '07 (Updated Feb 09 '07)
|
Product Rating:
|
|
|
Pros: Easy interface, nice rates
Cons: It is online, so my withdrawals and deposits are electronic.
The Bottom Line: A great choice for savings, if you can handle the accessibility issue.
|
|
|
| Saxguy's Full Review: ING Direct |
I’ve had accounts in ING Direct (online) bank for several years now. I established single savings accounts for myself and my wife, each time using an available $25 sign-up bonus I received during a Quicken upgrade from a few years ago. I opened a third account earlier this year to earmark some funds related to my music business.
I was originally attracted by their great rates, along with the $25 bonus, and I have not been disappointed. Their savings accounts, while fully subject to FDIC insurance, are always competing for the highest available. Their current savings rate is 4.5%. For comparison, the current rate from Chase bank is .40%
This is an entirely electronic account. So, the account is established by connection to an existing bank account, after I was assigned a customer number and self-selected a PIN. Ing sent a couple of very low value transfers to the checking account I supplied, and I confirmed them. Then, they drew the funds out. I have an automatic transfer set up on one account. I fund the other accounts from my existing checking account as needed. The hold is 10 days on the initial deposit and 5 days on subsequent deposit. There are no fees associated with the account.
When I have withdrawn by bank transfer to my checking account at Chase, it has generally been received within 2 business days from when I initiated the transfer.
On balance, I like the account. It has a consistently high rate and the administration has worked well. I talked to a live person to help me open my wife’s account and that worked great.
The drawback, of course, is that there is no bricks and mortar bank. While they will accept deposits by mail, I don’t want to do that because I don’t trust the post office. So I need to deposit checks into Chase and then transfer them. Same with withdrawals. I have to transfer the money into Chase and then withdraw it. However, for a cash reserve or specific-purpose fund, the lack of accessibility isn’t a bad feature at all.
They have mortgages available. At this writing, their rates are as follows: 5-year Adjustable rate Mortgage (ARM) , annual percentage rate of 6.74; a 7-year adjustable has an apr of 6.67%. I do not recommend adjustable rate mortgages because of the potential for increases. Ing reports an 8.25% rate on home equity loans. For comparison, Chase has them available for 7.49%.
What is intriguing is their new debit card product, Electric Orange. It offers a debut card, with nationwide fee-free atm withdrawals and free bill pay. I checked. There is good availability for atms in my area. Current interest rates for deposits on the account are 3.0% up to $50,000 and higher for larger balances. I am intrigued with this as a vehicle for isolating music-related transactions. However, it has the same flaw as the others in that deposits can only be made electronically.
On balance, the savings account is a great product, the mortgage and home equity loans are not, and the debit card might be. It’s certainly worth looking at.
Thanks for reading. God bless!
Please check out my related reviews:
The Good:
T Rowe Price Online Brokerage
Chase Perfectcard Rebate Credit card
JP Morgan Chase Bank
GMAC Mortgage
Prudent Speculator Investment Newsletter
Mycheckfree.com
Harris Bank Chicago
Hartford Insurance Claims Processing
The Bad:
First Midwest Bank
Citibank Rebate Credit Card (no longer recommended)
Like a Monster Movie (on Safeco Home Insurance)
Recommended:
Yes
|
|
|
|
|
- Add to My Yahoo!: 
- Add to Google Homepage: 
© 1999-2009 Shopping.com, Inc.