In addition to a savings account, FirstFedDirect also offers CDs which currently have some competitive rates. The rates of the 6-month and 12-month CDs are 4.42% and 4.73% APY. These rates are better than what ING Direct offers, however, FirstFedDirect has a high minimum deposit requirement of $10K for these. ING Direct doesn't have any minimum. The early withdrawal penalty for CDs at FirstFedDirect is a little bit worse than ING Direct's penatly. For both banks, CDs with terms under one year have a 3-month interest penalty. For the one year certificate of deposit, FirstFedDirect has a 6-month penalty. It's only 3-month at ING.
One small advantage of FirstFedDirect over ING Direct is that you can designate "pay on death" (pod) beneficiary at FirstFedDirect. This option is not available with ING Direct accounts.
The big question about FirstFedDirect is how good is their online banking and customer service. I can't find any telephone contact information. Neither the learn-more page or the FAQ page has any email address or telephone number. From reading their FAQs, the account linking feature doesn't seem as good or as automated as the others. To start an account, you have to mail in a check for the initial deposit. The checking account used for that deposit becomes your linked account. There's no information about adding additional linked accounts.
FirstFedDirect is going to have to do more to differentiate themselves from the other online banks. When EmigrantDirect first started, it made an impression by offering a savings account rate about 0.50% higher than the other banks. That helped overcome the newcomer status and the weak website. MyBankingDirect didn't have the best rates but offered a $25 signup bonus. New online banks are going to have to do at least one of these to make it worthwhile for people to open an account.