About a month ago, I was relatively clueless about high-interest savings accounts. It was about that time I stumbled upon ING Direct. I didn’t sign-up immediately though. I took the research route and wanted to learn more about these high-interest accounts. Seeing as my bank currently offers about 0.4% APY, I desperately wanted an alternative that would give me a bit more of a return on my money.
What are High-Interest Savings Accounts?
It’s pretty straight forward and explained in the name alone. High-interest savings accounts offer a much higher annual percentage yield per year over your typical banks savings account. Most banking is done entirely online as well. Store fronts and in-person transactions are a thing of the past as direct banks usually operate entirely virtually.
A lot of people aren’t comfortable with dealing entirely online, but the security measures put in place are on the same level, if not higher, than a lot of online web banking interfaces. Virtual banks are convenient and growing in popularity.
ING Direct Features
The ING Group was founded in 1991 and quickly expanded to ING Direct, the virtual bank sector with influence worldwide. The biggest feature of ING Direct is the 3% annual percentage yield. In one month, you’ll earn nearly as much interest on your money with ING Direct than you would with a typical savings account. Interest is directly deposited into your account at the end of every month, giving you the choice to withdrawal your extra money or allow it to compound.
You link your bank account to ING Direct account and you can facilitate transfers entirely online. In fact, all transactions occur online as all banking is done virtually. There aren’t really any storefronts. This allows for high interest rates as they don’t have to pay employee salaries or overhead costs of operating and opening new stores.
- High interest on your money. The current interest rate is set at 3.00%, which beats the typical banks paltry one percent. The interest rate does fluctuate and can go higher or lower depending on certain conditions.
- No fees or service charges. Ever. The money you deposit and withdraw is yours.
- Free and quick transfers. You can quickly transfer money between your bank account and your ING Direct account. Of course, it’s all free.
- No required minimum balance. You can deposit $1 or $1,000,000 or anything in between. It doesn’t matter.
- No penalties or hidden costs. Like I said earlier, what you put in, you can take out. ING Direct doesn’t take any of it.
- Online access 24-hours a day. You can check and manage your deposited funds at any point in time.
- It is safe and secure. FDIC insured and more than enough online security features.
My ING Direct Experience
I’ve only been a member with ING Direct for about a month now. My initial deposit was $400. This equates to about $1.00 each month in interest earnings. It’s not much, but it is a lot more than what I was earning with my savings account at my local bank.
I plan on depositing $400 each month into my account. It’s big enough money that I’ll make significant interest, but it’s small enough that it won’t affect my day-to-day life. The following is a current view of my interest earned so far with ING. Remember that it is only interest earned on $400.
Open An Account
I highly recommend you open an account. The signup process is simple and they provide full detailed instructions on how to link your bank account to your ING account. You’ll be doing yourself a favor by actually earning substantial interest on your money.
If I don’t add another dime to my ING account (not going to happen), in the next 18 months, I’ll have earned more interest at ING than I have throughout the lifetime of my savings account. Just open an account today and transfer a few dollars here and there when you can. Try your best to leave that money alone and you’ll be on your way to establishing a strong savings account.
$25 Deposit Bonus!
If you’re interested in opening an account and wish to deposit $250 or more initially, send your name and email address to Steve@IveTriedThat.com, and I’ll add you as my referral. You’ll be given an extra $25 and I’ll receive $10. Free money rocks.
If you aren’t interested in receiving $25 (are you crazy?) or aren’t going to deposit over $250 initially, then click here to visit INGDirect.com.