I recently signed up for an ING Direct savings account with a $25 sign-up bonus. My main reason for picking ING was the ability to easily create sub accounts within the system. I plan to use this account for at least two savings goals and want to be able to track them separately.
About the Bank
ING Direct, which is the operating name for ING Bank, is an on line banking institution which offers checking, savings, CD,mortgages, investment, and retirement accounts. ING is headquartered in Wilmington, Delaware. They are FDIC insured and operate under FDIC Certificate#35489 since August 4, 2000. ING is known for not always having the highest rate, but having a good customer interface.
Sign Up
Sign up was relatively painless. You start out having to fill in the normal stuff; name, address, phone, social, birth date, and email. After you get that in they ask that you agree with their electronic delivery disclosure notice, and their account policies. One thing they did not do that other accounts do is test you on your Credit Report contents to verify your identity. Once you agree to the policies you will have to link an external account for your initial transfer. They require you link your account to a brick and mortar checking account, and you have to transfer at least $250 to get the $25 referral bonus. after just a few short minutes you just need to wait for the trial deposits to verify your account, and they already deposited your $25 bonus
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Recently I have begun the search for a new Online Savings account. Previously I had funds with both OnBank and iGoBanking. While my iGoBanking rate has remained competitive my OnBank rate went from a 3.6% to a 1.2%. That to me is an unacceptable change in interest income. I go about looking for a high yield savings account in pretty much the same way as everyone else, I start out at BankRate looking for both the Safe and Sound rating as well as the interest rate and minimum balance requirements, then look into reviews and other information on the interwebs about the institution.
Well my search has led me to two possibilities, ING Direct with 2.2% APY, and no minimum balance VS. Dollar Savings Direct with 3.20% APY and a $1000.00 minimum balance. I am going to be investing more than $1000 so I am not concerned with the minimum balance so much. Most people would look at this and say it is a no brainer, that is a one percent difference in the APY. There are definitely mitigating factors here that muddy the waters and make the decision not so clear.
Let start with branding/perception and usability. Just about everyone has heard of INGDirect, I personally know people who have accounts with them and have loved it. This in itself goes a long way, when you have a personal relationship with someone and they make a recommendation that means infinitely more to you than a review on a Blog of some guy you have never met. Add to it the fact you can easily create subaccounts in INGDirect allowing you track for specific savings goals and that 1% difference starts to fade away into the back of your mind.
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