How many of you have money stuffed in a low interest bearing savings account? You are not alone. There are millions of people who have cash stashed in low interest bearing savings account. But for new internet savvy users there is a revolutionary banking method which pays more than 4 times the interest rate the traditional brick and mortar bank could offer. This revolutionary idea is “Online Banking”.
Young and savvy savers are easily and rightly attracted to this high interest rate and a competition for the brick and mortar bank is created. Slowly but surely they are losing substantial amount of money to the online banks.
ING DIRECT (www.ingdirect.com) is a member of ING, one of the largest financial services companies in the world. ING has over 112,000 employees operating in 50 countries with banking and insurance assets exceeding $600 billion. Currently ING direct is offering a whooping 4.4% interest rate on there savings account which is called orange savings account.
The online savings account work on a very important basis which does not replace the brick and mortar bank but work hand in hand with them. Once a savings account is established with ING it is linked with the checking account you have with brick and mortar bank. You deposit your money in checking account as usual and then transfer the excess money into the ING savings account online. Money can be transferred to and from the checking account to the savings account. There is no minimum amount required in the savings account and one can open as many savings account as he wishes. Another big advantage is NO FEES EVER. Many brick and mortar banks have a big list of fees they would charge if you fall in one of there pitfalls. As the money are in the savings account they are available when you need them and are not locked for the term of the CD’s. It takes about 3-4 days (may vary) to transfer money into the checking account.
Another biggest concern for the online banks is security. ING direct works hard to protect your money and they have made the login process very secured. Every customer is provided with a customer ID (8 digit number) which is used to login. Some people complain that login is a bit of hassle but it prevents hackers to steal your identity. Security can never be compromised to attract more customers.
ING Direct is an excellent solution to park your savings and earn a good interest rate. The bank is FDIC insured. ING direct and other online banks provide a very attractive alternative to save money with high interest rate. Online banks provide consumers with a attractive alternative of banking but remember that it is just an alternative and never put your money where you are not comfortable.
