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What Truly Matters to ING DIRECT Customers? Many Say Interest Rates


This February ING DIRECT will officially become Capital One 360. In an email to customers and in a blog post, Jim Kelly, the head of direct banking of Capital One 360, wished customers a happy new year and updated everyone on the transition. In addition, he listed the following 2012 highlights for ING DIRECT in terms of new features:

  • Giving you access to over 40,000 fee-free ATMs: You still have access to 38,000 fee-free Allpoint® ATMs, plus now you can grab your money at 2,000 Capital One ATMs.
  • Launching CheckMate: You asked for the ability to make mobile check deposits and we delivered CheckMate. And it turns out you really meant what you said – we’ve logged over 1.2 million CheckMate deposits (and counting).
  • Getting rid of foreign transaction fees: Say goodbye, so long and see ya to foreign transaction fees – we won’t charge you for using your Debit Card outside the U.S.
  • Unveiling My Savings Goals: Now you can set a savings goal and track it with this tool. On a side note, more than 15,000 of you shared what you’re saving for in our Savings Most Wanted promo. Every time I see your pictures and read your stories, I’m floored.

What I found more interesting were the comments in the blog post. Many customers said in the comments that the most important feature for them was the interest rate. Here's one from a commenter named "Frustrated Saver":

Jim, that's all very nice, but I joined ING a long time ago based upon the high interest rate for savings accounts. That is all that truely matters to me and probably alot of other savers. So, when is ING going to at least match Ally Bank's rate which currently is 0.95% apr?

This comment has received 166 likes as of this morning. It appears that Jim Kelly (or another ING DIRECT official named Jim) replied to several of the comments. I have to give ING DIRECT credit for reading and replying to many of these comments. Here is his reply to the interest rate complaints:

@ Kpyachtsman, @ The Man, @Pablum0734 – Rates are important, we get it. But we also know that our Savers have come to expect a terrific online experience, fee-free checking & savings, and ability to chat with real people. We’re working to bring you the best combination of value and experience out there, and we hope you’ll stick around to see us live up to that.

A commenter named "Mary" asked when they will have the ability to designate beneficiaries for the savings accounts. Her comment currently has 19 likes. Jim also had a reply for this:

@Mary, @Pymcat – While there’s no way to designate a formal beneficiary on your savings account, you do have the option of registering your accounts in a Trust at http://helpcenter.ingdirect.co.... When you register your accounts, you’ll have the ability to designate beneficiaries. If we make any changes, we’ll be sure to let our Savers know.

I can understand why ING DIRECT may not want to be a rate leader, but I don't know why it can't allow customers to designate beneficiaries. Many have requested this feature for years.

Even though ING DIRECT has rarely been a rate leader, its savings account rates have been close to the average for internet savings accounts. Over the last year, it has been a little above the average that we've calculated for internet banks. However, this average has been pulled down by several internet banks that have pretty much given up on being competitive (i.e. HSBC, CNB Bank Direct, Charles Schwab Bank).

ING DIRECT's Electric Orange checking account has consistently offered rates up to 10 basis points higher than the savings account rate for large balances. These rates are competitive for internet checking accounts.

ING DIRECT savings and checking account rates could be better, but at least they have been fairly competitive. That's not the case for ING DIRECT CD rates. They are way below the rates offered by several other internet banks. For example, many of Discover Bank's and Ally Bank's CD rates are currently 2x to 3x the CD rates at ING DIRECT.

Related Pages: savings account, checking account

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  |     |   Comment #4
Ken.....Would you check on Bankers Trust In Iowa? I thought I saw they were offering a promotion recently but now I cant find it . Thanks!
  |     |   Comment #5
@Anon #4, There appears to be a couple of fairly competitive CD rates at this Bankers Trust, but nothing great.
  |     |   Comment #6
Friendly and reaonable customer service might be nice, too.  I used to use ING as a holding account while looking for CD deals (mostly on this site, I might add) and consistently kept around $200K in ING.  Now I actively look elsewhere because of the poor ING customer service and general lack of services, such as their failure to offer the service to wire money.  Their website is simple, but also unclear.  You can get to the end of a process before you realize that you can't complete it, such as sending an overnight check for more than $100K.  If you wanted to send $250K to another bank, for example, you have to pay for three overnight checks @$25 because they won't send a single check.  And if you complain to customer service, their responses can border on being snarky.  I hope Capital One changes this; I know nothing about that bank.
  |     |   Comment #7
Their subpar CD rates got me to stop renewing my CDs with them.  They also switched me to the paperless option wothout my acceptance of it and only the primary account holder can view the Form 1099INT online.
  |     |   Comment #8
As much as I wish they were market leaders on rates again, I have to admit I like their website so I might not go off half ****ed & move my money because of my past negative experience with a fake late fee at cap1.


I really doubt that Jim is really answering all the comments. Thats an employee pretending to be him.


I understand why they bought ING. And they didnt do it to pay the highest rates. And they know that many of us will stay as long as they are reasonably competitive.

Rates were 6% when I opened the account. And almost nbobody had better rates. Now, lots of places do but will most of us really switch over .10-.15 of 1% ?  I guess thats 10-15 basis points.

 I could see if they wanted to add fees or account minimums to low value accounts.  But apparently they dont  want to go that route.


If & when rates go back up, Im sure lots of us WILL move over 50-75 basis points.

  |     |   Comment #9
When I first started with ing they had the highest rates anywhere ...7.5% on 5 year cd ..i'll probably keep .05 cents with them now just to keep account open
  |     |   Comment #10
i want little or nothing to do with ing/capital one bank accounts since they lowered their interest. i am happy to use capital one's credit card as long as i continue to get cash back under their present program. the federal reserve has made it impossible for savers to get a savings rate that can be called anything other than patethic. they are forcing savers to risk assets (stocks, bonds, etc.) if the banks don't want to pay me an above average interest rate to get the use of my money, i wont use them for savings.
  |     |   Comment #11
I wonder if they will lower their rate to what they are proposing for their Costco customers?  That money market rate will be dropping to 0.5% in the next week or so.  Can't decide if I like Capital One...
  |     |   Comment #12
I have an INGDirect account that is now CapitalOne360. Been fairly pleased with them. I used to have a number of CDs with them too, but not anymore. No CDs at all, and no intention of buying any anymore.

I have been forced by the Federal Reserve into "risk assets". It seems to me that bank accounts are the biggest risk of all so I avoid all but those without time committments. With the Fed pumping so much counterfeited money into the economy, the dollar is doomed in the long run, regardless of how long it may take to start runaway inflation.

Mostly, I now buy gold for savings. Recently, I bought platinum when it went down to $1,400, and some commenters on this site were suggesting it. It has gone way up, and I've made more than I would in the bank. I wish I could still get low risk from the dollar and banks, but the risk is higher than buying metals.

So, I will continue doing what I am doing, and use Capital One and the others only for liquid accounts. However, this is still the greatest site on which to find checking and money market accounts, for temporary fiat currency storage with the best rates (dismal) and flexibility (online ACH is a great invention!).
  |     |   Comment #13
Fed policy is not encouraging you to keep your capital in a savings account.  However, $100 left in a savings account in 1997 is now worth $141.  Then compound interest earned as a savings account.

The question is what is value do these dollars have in buying power.  If you pump gas whatever gains you're getting are these savings is easily lost to cost increases for the acquisition of resources.

Trying to hold onto yields in this environment is nearly impossible with so much intervention in the market.  Equities recovered, as the Fed has inserted 5 trillion in liquidity by increasing its balance sheet.
  |     |   Comment #15
After putting it off for a long time, I am finally viting with my feet.  My last transfer out of ING will be tommorow and Im taking every dime out.

Opened up a checking at Ally and that will be my primary checking.


Found a local credit union with a 1.26% rate and it just so happened that a relative is a member which allowed me to be.


But, Ive also decided that I am going to be more aggressive in buying some kind of stocks.  Thinking about a local utility that yields about 4.5% and has a fantastic long term track record, about matching the nasdaq over the long run. And increasing dividends.

The bottom line is I have WAY, way too much in cash. Over the last 10 years, with no other income besides stocks & interest, Ive been less willing to take risks & reinvest like I used to.


Ive got plenty in CDs to pay my living expenses, probably for life. But if not, I wont need more for at least 12-15-20 years. (Depending on medical costs, I have a high deductible)


Im leaving my ING account open, just hoping that they get with the program because I really like their interface and easier log in compared to Ally. But, I will manage.


  |     |   Comment #16
After setting up the ally checking & playing around with it, I think Im going to go back to ING for my primary checking, just make sure I dont keep much excess in there.


The difference, on a $500 avg balance  between .2% and .4% is $1 a year.

And the ING interface is easier to deal with for me. My upcoming transfers in & out are all listed on the same page.

Ally has a cool overdraft feature. If you dont have enough to cover your balance, they will automatically pull $100 increments from your savings or money market to cover the check with no interest or fees.

ING just charges interest at 11.25%

So, While Im not pulling ALL my money out of ING, I am pulling out 99% for greener pastures.

I expect I will keep a small amount in my savings and an even smaller amount in my checking.
  |     |   Comment #17
As someone with both C1 and ING accounts over the years, I'm not worried about the .85 rate at the new ING (C1360) vs. Ally's .95 - the website is easy AND you can use the account to fund no-fee transfers to Sharebuilder if you want to buy a stock now and again - very nice feature.  What other "sweep account" gives you .85 interest?  None!  Note the C1 accounts have reduced rates - though they are separate banks, I guess they figure they don't need the high rates everywhere.  So, former ING accounts are at 0.85 while C1 savings is at 0.5.  The C1 MM that gave you miles really reduced rates to 0.1% so miles don't make up the difference vs. the higher rates.  I'll stick with ING/Capital One 360  - all-in still the best deal around for savers and small investors.
  |     |   Comment #18
Had money in a orange savings account. The rate was not competitve. I withdrew my money and went elsewhere.

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