Frugal | How I use my ING Savings Account

How I use my ING Savings Account

Posted by Lynnae on January 21, 2008

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ING DirectI received an email from a reader last week, who saw my link for the $25 ING savings bonuses at the top of the page. She wanted to know how it all worked, and how I used my account. I figure for everyone who asks a question, there are probably several people who are wondering, but haven’t asked yet, so I thought I’d explain.

Three or four years ago, I opened ING savings accounts for my husband and I and each of our children. I was skeptical at first, because I like being able to walk into a bank and talk to a person face to face if there’s a problem with my account. Still, at the time ING was offering $50 bonuses for opening an account, and I couldn’t pass up free money. So I opened the accounts.

Looking back, it was a great move. ING Direct has been a wonderful bank to deal with. In fact, when our local credit union started charging $10 a month just for the privilege of walking into the bank to talk to a live person, I transferred all of our savings to ING.

So far my experience has been 100% positive. I’ve had all of the benefits of a high yield savings account, and none of the problems I had worried about. I’ve had to call customer service a couple of times (because I lost my password), and they were really helpful.

So how do I use my account? First, I set up an automatic transfer each month from our checking to our savings account. This allows me to build up my emergency fund. I also set up a weekly transfer to my daughter’s savings account for her allowance. She rarely spends her allowance, and I rarely carry cash, so it’s easier for both of us this way. I’ll have to change my strategy next month when I put her on a salary, but I’ll tackle that then.

Transfers into or out of my ING savings account are supposed to take between 3 and 5 business days. It’s been my experience that it’s usually about 3 days. But there’s another option if you want to access your money sooner: the Electric Orange checking account.

I first heard about the Electric Orange checking account at Gather Little by Little. I opened one up last week, so I could have access to my emergency fund right away, in case of a real emergency. This checking account is unique in that you don’t actually write checks. ING sends you a debit card that you can use for transactions. So, I don’t think it could actually replace my Washington Mutual checking account at this point, because I still write checks for things like rent. But it’s nice to have immediate access to my money.

As my emergency fund grows, I will probably create sub-accounts to my savings account for specific things like car repairs, buying a house (maybe someday…), and other big items we need to save for.

So, I’m pleased to tell you that my experience with ING has been very positive. They’re FDIC insured, so that also makes me feel secure in putting my money in their bank. And I haven’t been able to beat their rates for savings or checking accounts in a brick and mortar bank. They offer 4.10% interest for savings and 3.11% for checking, with no minimum balance.

If you would like more information, don’t hesitate to contact me. And if you’re interested in opening an account, you can get a $25 bonus if you’re a new customer and make a minimum initial deposit of $250 using one of my referral links. (I’ll get $10). Even if you don’t use one of my links, I really encourage you to give ING some serious consideration as a place to park your emergency fund. It’s been great for me!

To see how others are using ING, visit I’ve Paid for This Twice Already and Christian PF.

Have you used online banking such as ING Direct? What has your experience been?

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Comments

20 Responses to “How I use my ING Savings Account”

  1. plonkee on January 21st, 2008 4:49 am

    I’m a big fan of whichever account will pay me the most interest. At the moment, that’ll be mostly online accounts, although my main current account is with a bricks and mortar bank, because it pays higher interest. I don’t really use the cashiers for anything, just deposit cheques and use ATMs as necessary.

  2. Heidi on January 21st, 2008 6:12 am

    I like ING for savings, but for checking people might want to check out their local credit unions. Most credit unions you get interest on your checking account with the benefit of normal checks you can use and a building you can go to. It used to be that credit unions had closed membership, but not so much anymore.

  3. Frugal Dad on January 21st, 2008 6:28 am

    I do something similar with my account at HSBC, but am interested in the Electric Orange checking option at ING. Thanks for the heads up on this one.

  4. E.D. on January 21st, 2008 6:32 am

    We’ve been using ING since we started saving for our down payment (2004). It’s been great as a place to park our planned large expense fund and our emergency fund. We have about half of the money (the emergency fund) in a rotating set of short term (6 month to 18 month CDs). Even though the rates have been dropping, most of this money is still earning 5.25%. The rest is in the savings account.

    I track our money closely, but even I was surprised when I downloaded our 1099. We earned almost $800 in interest on the money in 2007!

  5. Ron@TheWisdomJournal on January 21st, 2008 8:01 am

    I just keep hearing and reading about ING. I have to check this one out.

  6. Blue on January 21st, 2008 8:07 am

    I moved my main savings account to HSBC, but I’ve been waffling over whether to switch to ING for my checking account, since I usually don’t keep a running balance - i.e., what goes in usually comes out.

  7. Steve on January 21st, 2008 9:10 am

    I used ING for savings. Its great! I however use a local bank for my checkings.

  8. Kandy on January 21st, 2008 9:36 am

    I’ve seen the commercials but didn’t realize it was a bank…I always assumed it was something to do with e-trade. Yeah, I just didn’t care to check into it LOL

    I think I need to do something like this for the emergency fund we’re going to set up after our refund comes…the interest rates for our local banks aren’t nearly as good…

  9. Kacie on January 21st, 2008 10:24 am

    I’m making the transition from my B&M to ING. I hope to do 90% of my banking with ING, since the rates are so much better.

    With Electric Orange, you can have checks mailed to pay your bills. You just fill out the info online and they mail it. You can have checks sent to pay your light bill, or mail a check to a relative–they’ll do it for no charge.

  10. Mrs. Micah on January 21st, 2008 11:21 am

    It’s really nice to see people writing about ING right now, since I just started actively using my account. Still figuring out the kinks. :)

  11. 20 Something Lady on January 21st, 2008 4:42 pm

    I just wanted to let you know that I just opened an account using your link.

    Also, how do you get all of your reference link? I didnt see the option when I am in my account? I only see the email option.

    Thanks again.

  12. christianpf on January 21st, 2008 7:22 pm

    I know ING pays a little less than a bunch of other guys, but they are just so dang innovative and extremely easy to use… I love em!!

  13. Patrick L on January 21st, 2008 7:23 pm

    I first heard about the IngDirect Electric Orange acct just last week. Then I got really interested in it when I heard it pays MORE than their savings account- on a deposit of over 50K- the interest is around 4.6%- which is pretty good.

  14. RacerX on January 21st, 2008 8:38 pm

    I was going to switch as well, but i need access to cash for my envelope system…HUM???

  15. Lynnae on January 21st, 2008 8:44 pm
    @RacerX - Create an Electric Orange Checking Account, too. There’s no minimum balance, and you have access to ATMs for your cash needs. :)

    Or you can transfer cash to your regular checking account. That’s what I’ve been doing. It takes about 3 days.

  16. Julie on January 21st, 2008 9:20 pm

    Sounds great…I’m off to check it out!

  17. Steve on January 21st, 2008 10:08 pm

    My best suggestion for all of you is have an automatic savings plan. I save a dolar a day and every Friday ING Direct takes out $7 from my checkings account.

    ~Steve “thecheapone”
    http://www.thecheapone.com

  18. lulugal11 on January 22nd, 2008 8:03 am

    I have been using ING for about three years now and I just wish I had started earlier. It is very easy to use and I pay all of my bills that way using my Electric Orange checking account.

    ING is very easy to use and I would not go back to using anything else.

  19. Jay on January 22nd, 2008 8:54 pm

    I love ING because it’s so easy to create additional funds for certain items. For example, my wife and I have had accounts for my tuition, our emergency fund, our Christmas fund, saving for a car, etc. We then use ING’d scheduled withdrawals to transfer money from our primary checking to the appropriate ING account on the day we specify. ING is very user friendly, and they’re customer service is outstanding.

  20. jen on June 3rd, 2008 7:12 pm

    i have a question. I want to get an ING savings account. When i transfer the money from my wachovia account to my savings account am i going to be charged a fee?

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