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Thread: ing direct savings account earning 4.5 apy?

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    Default ing direct savings account earning 4.5 apy?

    no minimums, orange account that is earning almost what my friggin cd does at wachovia.

    Oh wait , i take that back because they renewed my money for another 8 months or so at 3 percent because i didn't make it to the bank in time to put it in another cd. Fuckers.


    But anyway, there is a catch right? Anyone have an account through them? I am familiar with the company but i haven't used them yet.

    Oh an if the savings account can earn that, what do their cd's earn?

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    Default Re: ing direct savings account earning 4.5 apy?

    ING, like other 'internet based' banks, must work the 'spread' between wholesale interest rates when the bank must borrow money to lend and retail interest rates it can charge for loans or pay to savers. One school of thought is that, by minimizing brick and mortar bank facilities and by minimizing human teller payroll, ING and other 'internet based' banks can afford to operate with a tighter 'spread'. However, because ING and other 'internet based' banks do not have that local brick and mortar presence, they also face a much more competitive retail customer environment (read 'mobile money').

    ING has been accused of offering very high interest rates whenever it needs to attract 'new' depositors, but then quickly dropping interest rates after those 'new' depositors open accounts ...



    In the USA, ING accounts are FDIC insured.

    On US$ denominated accounts ING is paying comparatively high interest rates right now i.e. 4.5% on MZM (money of zero maturity i.e. savings / money market) accounts. In comparison, Countrywide is paying 5.25% on MZM accounts (with a $10k minimum). Also in comparison, most brick and mortar banks are paying 3% or less on MZM accounts.

    Skeptics would tell you that the higher the interest rate that a bank is willing to offer to attract new customer deposits, the worse it NEEDS to get its hands on additional cash ... for whatever reason. And while the principal in any FDIC insured account is as good as the US taxpayer, if a bank should fail a 4.5% savings account could instantly turn into a 'zero percent 5 year CD' because the depositor will have to wait for years until an FDIC check arrives in order to 'withdraw' their money from the bankrupt bank. The FDIC check will also not include the payment of any interest between the date of the bank failure and the date the check is mailed, a period which could under law stretch out to be 7 years.

    Is ING bank any riskier than Countrywide or Washington Mutual or Everbank or any of the other 'internet based' banks ? The answer is that nobody really knows the answer. However, with things getting dicey in the banking world lately because of CDO and MBS losses, it really isn't safe to totally ignore the possibility that a bank could fail anymore.

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    Default Re: ing direct savings account earning 4.5 apy?

    Ing bank, part of the Ing company, is rated AA by the major rating companies. It is a very solid company that is also into insurance and asset management. While I would agree that anything can happen to any bank, it is not likely to happen to this one.

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    Default Re: ing direct savings account earning 4.5 apy?

    I have a checking account with ING (5.30% APY). No complaints so far.
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    Default Re: ing direct savings account earning 4.5 apy?

    actually Fitch does rate ING's parent company at AA see .

    This is one step above Countrywide's A rating - at least it was until Countrywide's rating was dropped last week - see

    In comparison, CitiBank and most other big name brick and mortar institutions have a AAA rating.

    Again these Fitch ratings have to be taken with a grain of salt because there are so many 'opaque' details involved in trying to evaluate counterparty risk and/or 'market' value of various derivatives and asset backed securities held by all of these banks. This is particularly the case when the financial institution has a large presence in 'foreign' markets and economies (ING is based in Belgium).

    Of course the ECB is on record that it is willing to provide 'infinite liquidity' to keep European banks from failing after the French and German bank incidents two weeks ago ...

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    Default Re: ing direct savings account earning 4.5 apy?

    I've had the orange savings account for about 3 years. No complaints. It's where I hold my 6 months of living expenses/"emergency fund" money. It takes about 3 days to transfer from the orange acct to your bank's checking account.

    Currently my APR is the same as the new account owner one they are offering.
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    Default Re: ing direct savings account earning 4.5 apy?

    I have a savings acct with ING ....had it for about 2 years. ZERO complaints!! They have nice and informed customer service people should you ever need to call with questions, it takes me 1-2 full business days to transfer money between my savings and checking (different bank), and they have a good Automatic Savings plan, where you can pick whatever day(s) of the week/month/etc that you want money deposited from checking into your savings.






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    Default Re: ing direct savings account earning 4.5 apy?

    do what you feel is best of course, but ING is a european bank and there appears to be no immediate end in sight for european bank problems ...



    (snip)"Sachsen LB, founded in 1992 after the fall of the Berlin Wall, was rescued two weeks ago in a state orchestrated bail-out. A consortium of banks agreed to provide a €17.3bn credit lifeline, but only on the understanding that it agreed to be sold to a stronger player.

    It allegedly used no fewer than five Irish 'conduits' (off-balance sheet vehicles) to invest in collateralised debt obligations (CDOs) and other high-risk instruments, according to German newspaper Süddeutsche Zeitung.

    The biggest losses stemmed from structured investment vehicles (SIVs) which involve using short-term credit to buy longer-term assets, creating a mismatch in maturities.

    The rescue deal comes as investors waited to learn whether the US Federal Reserve would succeed in stabilising the US commercial paper market, the latest - and biggest -domino to fall in the spreading contagion from sub-prime debt. Investors have suddenly lost trust in this form of debt, fearing it may be tainted by exposure to CDOs."(snip)

    (snip)"A string of Germany banks have run into trouble after taking leveraged bets on CDOs and the even more deadly 'synthetic' or derivative CDOs - bond-like securities that often contain slices of US mortgage debt.

    The scale of carnage in Europe explains the series of emergency actions by ECB, which injected a further $85bn in liquidity through various mechanisms last week. IKB was the first German bank to crumble earlier this month, requiring an €8.1bn state-rescue just days after it denied any significant exposure to sub-prime debt. "(snip)

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    Default Re: ing direct savings account earning 4.5 apy?

    I've had accounts with ING for YEARS. No complaints from me.

    I like how I can earn a decent enough interest rate yet not be penalised for moving money in/out of my accounts with them. Plus I like how it can take 1-2 days for me to withdraw money from my accounts as it makes sure I don't spend it unless really necessary.

    Plus I like the "set + forget" nature of my savings accounts with them.


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    Default Re: ing direct savings account earning 4.5 apy?

    ive been looking into the ING oneanswer investment package they offer, ing are really well known down here to be an amazing savings and investment company.

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    Default Re: ing direct savings account earning 4.5 apy?

    i've had an ING savings account for almost 5 years, and my mom for even longer. The interest rate keeps going up and I'm not complaining. I love them.

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    Default Re: ing direct savings account earning 4.5 apy?

    Quote Originally Posted by britneyireland View Post
    I've had the orange savings account for about 3 years. No complaints. It's where I hold my 6 months of living expenses/"emergency fund" money. It takes about 3 days to transfer from the orange acct to your bank's checking account.

    Currently my APR is the same as the new account owner one they are offering.
    Perfect idea. As soon as my debt is payed off, I was planning on looking for a relatively low-risk (even though we don't know what that means anymore) savings vehicle. I was using US gov I-bonds as my "emergency" money that I wasn't allowed to touch. Pretty much pretended I didn't have the money. Now I've cashed those to pay debt, and will be looking for something else.

    I'm definitely going to look into an ING account. I honestly didn't know there was any savings account out there that offered anything over a couple of percentage points as a thanks for hanging onto my money.
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    Default Re: ing direct savings account earning 4.5 apy?

    There are quite a number of FDIC insured big name money market accounts getting around 5%. I'd go with one of them if the internet bank thing bothers you.

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    Default Re: ing direct savings account earning 4.5 apy?

    What part and how much do you pay on taxes of an account of this type? So, I'm assuming you pay taxes on the money going in..what about the earned interest?
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    Default Re: ing direct savings account earning 4.5 apy?

    Quote Originally Posted by TigersMilk View Post
    What part and how much do you pay on taxes of an account of this type? So, I'm assuming you pay taxes on the money going in..what about the earned interest?
    It works just like a normal brick and mortar bank savings account and normal tax rates apply. You'll get a 1099 for your earned interest the following Jan/Feb.

    I've had the ING orange savings account for about 3 1/2 years. No complaints. I was automatically depositing into it until about a year ago. I stopped because a money market fund that I have is now earning over 5%.
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    Default Re: ing direct savings account earning 4.5 apy?

    So the general consensus is positive? I'm debating getting an account with them for my emergency money. I do want to ladder CD's as I make enough money to, but melonie's links scared me(mainly because I dont think i understand muhc about a lot of the issues involved, and definately DONT want my money gone if they fail)

    But its stupid-i dont have QUITE enough for a CD and i want it to be accessible... and i know that if it COULD make more interest it would be great....

    I'm leaning towards opening an account, but i feel like i dont understand a lot of what melonie was saying,but it made me do a double take.

    And here i stop rambling.

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    Default Re: ing direct savings account earning 4.5 apy?

    ^^^ I didn't intend to needlessly scare anybody. However, there are a LOT of banks out there that are involved with 'toxic' investments (see other thread about run on a British bank this week). In general, the higher the interest rate that a bank is willing to pay on new investment money, the worse they are in need of that extra depositor cash. Logically speaking, this leads to a conclusion that institutions willing to pay very high interest rates on CD's and money market accounts in order to attract additional cash are doing so because they are having difficulty borrowing cash from other sources (like other banks). As to the underlying reasons for this difficulty in borrowing from 'normal' sources, that is open to speculation. As to the potential ramifications re a future bankruptcy, that is also open to speculation.

    All that is certain is that other banks who do not feel the need to pay the very highest interest rates in order to attract new CD and/or money market deposits probably do not have difficulties borrowing from 'normal' sources, or are probably not in a position where they need to raise cash in the first place.

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