Finance Choices
ING Savings Account
Who are ING?
ING direct was launched in the U.K in May 2003. Their parent company the international Netherlands group is one of the world's largest financial services organisations. ING direct is active in 8 countries and now gas over 10 million customers.
Unlike other banks, ING direct does not have any high street branches and this, it claims, is how it can offer such good rates of interest. This does not mean you will not be able to speak to a customer advisor however as ING direct are based in Reading and can be contacted either by post, email or phone.
What about the ING Savings Account?
Open an ING Direct Savings Account with just £1 and you'll be earning interest at the high rate of 5% AER however high or low your balance is. This is a great feature as many banks publicise a high interest rate require you to pay in a certain amount of money each month to quality. The ING Savings Account is different.
There's no need to commit to a regular payment, and there's no fees or restrictions on drawing your money out - you can deposit or withdraw as much as you want whenever you want.
Is the application process easy?
The application process is simple and hassle-free, and the site includes a savings calculator to help you see how much your money could be earning if you moved it to ING Direct.
Summary
ING direct was launched in the U.K in May 2003. Their parent company the international Netherlands group is one of the world's largest financial services organisations. ING direct is active in 8 countries and now gas over 10 million customers.
Unlike other banks, ING direct does not have any high street branches and this, it claims, is how it can offer such good rates of interest. This does not mean you will not be able to speak to a customer advisor however as ING direct are based in Reading and can be contacted either by post, email or phone.
What about the ING Savings Account?
Open an ING Direct Savings Account with just £1 and you'll be earning interest at the high rate of 5% AER however high or low your balance is. This is a great feature as many banks publicise a high interest rate require you to pay in a certain amount of money each month to quality. The ING Savings Account is different.
There's no need to commit to a regular payment, and there's no fees or restrictions on drawing your money out - you can deposit or withdraw as much as you want whenever you want.
Is the application process easy?
The application process is simple and hassle-free, and the site includes a savings calculator to help you see how much your money could be earning if you moved it to ING Direct.
Summary
- High savings rate of 5.0% AER
- Start saving with as little as £1
- No catches, no fees and no penalties
- No restrictions on your money
- No hassle
- Safe and secure
posted by Barbara Gordon at 4:18 PM
ING Savings Account
7 Comments:
I like to think that I'm good with my money. I manage to save a reasonable amount by using an ISA which I top up with the maximum amount each April from my savings account. Any extra money each month finds itself quickly moved into my savings account.
But was I getting the best I could from my savings? The answer was no, not really. I had been using an e-savings account from my bank, so could move money instantly to and from it from my current account. While this is many times better than keeping all my money in a current account, it was only paying around 4% interest, so i decided that I could get a little bit more (and every penny counts!) by opening up another savings account.
I looked at various different accounts, and finally settled on ING Direct's savings account.
The application process was a breeze. There are three ways to apply. On the internet, over the phone, or by post. i chose internet, because it's quickest, easiest, and I can sit and have a cup of tea at the same time without spilling it down the phone, or over a bit of paper!
The first thing I noticed was that you can 'save' your application, so that if you don't have enough time to complete it straight away y ou can come back later and complete it. I don't know how well this feature works, because I didn't use it. It took me less than 10 minutes to complete the application, and I didn't spill my tea!
The application form asks for all the normal details, your name, address, date of birth, time at current address, and your current account details. More on that later....
When I completed it I clicked the submit button, and was told that my application had been accepted, and told me my customer number, and account number. It also told me what would happen next. (It is worth noting that you may have to provide further information. My brother opened an account, and when he got to this stage they asked him to send some documents to them to verify who he was).
To activate the account you have to send them a cheque for at least £1 payable to yourself, with your account number on it. When they get the cheque, your account is activated and they send you:
A welcome pack
A direct debit letter
A pin number
The welcome pack confirms your customer and account numbers, and has a quick reference guide on how to use your account, and the terms and conditions, which you have already seen during the application.
You get a letter confiming the direct debit that you set up. The reason for this is that it allows you to pay money into and take money out of your ING account by using the direct debit system. You can also pay money in by sending them a cheque, or sending the money electronically. The reason they prefer to use direct debit is because it keeps their costs lower, enabling them to pay you more interest.
Your pin number is to activate your online access to your account. You need it the first time you log on. You then set up your own pin number, and memorable date, which are used along with your customer number to log in.
Once you have logged in, everything is nice and clear and easy. You have an overview of the account showing you the balance, and the total interest you have earned so far during this calendar year, which is nice touch!
The 'Move my money' screen is where you do the transfers. You select which account you want to transfer money FROM (either your ING Account, or your linked account which you set the direct debit up for), the account you want to transfer the money to (again, either your ING Account, or your linked account), the amount you want to transfer, and when you want the transfer to happen. All nice and straightforward.
There isn't much more to say about operating the account. It really is that easy!
ING Direct is a part of the ING (International Netherlands Group) who according to their website operate in over 60 countries and have over 115,000 employees!!
So, if you want a savings account that is easy to use and pays a good rate of interest, take a look at ING!
Like many savers I am not always on the ball when it comes to checking that I am getting the highest interest rate possible on my hard earned cash. A few months ago I decided that I really needed to look at my finances to make sure I was getting the best deal on my savings. I wanted a savings account that would pay a high rate of interest, but I didnâ??t want any restrictions or penalties to apply on the account. I looked on several websites like money supermarket to see what was available. Well guess what I managed to find a new kid on the block paying an extra 2% on my savings, compared to the savings account I had with the Bradford and Bingly! So who is this newcomer and how good are they?
The Company
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ING direct was launched in the U.K in May 2003. Their parent company the international Netherlands group is one of the worldâ??s largest financial services organisations. ING direct is active in 8 countries and now gas over 10 million customers.
Unlike other banks, ING direct does not have any high street branches and this, it claims, is how it can offer such good rates of interest. This does not mean you will not be able to speak to a customer advisor however as ING direct are based in Reading and can be contacted either by post, email or phone.
Opening an account
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Having decided that I wanted to move my money and that ING direct was the one for me, I visited their web site to open an account.
Their web site at www.ingdirect.co.uk,is well laid out and really easy to navigate. The first thing that struck me about the site was how uncluttered it was. There is a navigation bar at the top of the page with various headings such as login, how to open an account, all about ING, all about the savings account and how to contact ING. I clicked onto the open an account bar and was immediately taken to an application form. The form is simple to fill in and only took me a few minutes. It is necessary to have a U.K bank account in order to open the savings account and you will need to give details of the account you intend to link to the savings account. This done and submitted I then received a confirmation email very quickly to tell me a welcome pack was on its way. I was advised that I would need to send ING direct identification such as an Inland Revenue notice of coding or a letter stating entitlement to benefits before my account could be opened. I received my welcome pack and sent of my identification and a cheque for £1 to open the account. I was amazed at how quickly a received a reply. I then received an account number and a pin number, in separate envelopes.
The account needs to be activated by either going to the web site and entering your customer account number and pin or telephoning ING on 0845-8888. I activated my account on line and found the process really simple.
The account
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At present ING direct are paying a generous 5% gross on their savings account, which is the best rate around for a savings account with no restrictions. When you activate your account donâ??t forget to inform ING if you are not a taxpayer, as you will be entitled to receive your interest gross. Interest is accrued daily and added at the end of each month to your account.
Paying in money is really simple just log into your ING direct account and follow the instructions to transfer money from your bank account or alternatively you can use the automated telephone service or if you prefer you can talk to an operator. It takes 3 working days for money to reach your savings account. When you have completed the transaction there is a facility to print off a copy for your records.
You can also pay money into your savings account by sending a cheque, freepost to ING in Reading.
If you would like to save money on a regular basis via a direct debit, then ING can set this up for you. I have opted to transfer money when I am able.
Withdrawing money is also simple. Just log in and follow the instructions or again you can withdraw funds via the telephone. If you are lucky enough to have more than £10,000 in your account and want to withdraw it then it will take an extra 3 days for the money to arrive in your bank account.
It is possible to link 3 U.K bank accounts to your ING account and you can have more up to 10 ING savings accounts. This might be useful if you want to save for different purposes such as holidays or Christmas. You can add a description to your account number so you know what it is for.
Statements are sent out quarterly and can either be seen on line or you can receive a statement by post.
You can have access to your account on line 24 hours a day or via the interactive telephone banking service, you will be charged at the local call rate. If you prefer you can talk to an operator, which is reassuring if things go wrong. My experience of their call centre staff has been very positive. I have always been connected to an operator quickly and my call has been dealt with in a friendly, efficient way. Whichever way you decide to operate your account you will first be asked for randomly chosen numbers from your pin number.
The ING direct savings account has no restrictions and you can start saving with as little as £1. There are no penalties for withdrawing your money and no limit to the amount you can save in a tax year. Best of all the same interest rate applies however much you have in your account. Obviously the interest rate can vary, but ING will keep you informed if the rate changes.
How safe is your money ?
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ING direct uses the very latest encryption technology on its web site and by asking you for different numbers from your pin aims to ensure your money is safe. ING direct are a member of the financial services compensation scheme so should things go pear shaped and the bank go broke, then you would be protected and would not lose your money.
The verdict
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As you can probably guess I have nothing but praise for this bank. I find the web site very easy to use and by transactions have always been completed without any problems. Their customer service is excellent, with knowledable, helpful staff. If you are looking for a savings account with no restrictions then this one is definitely worth a look!
ING Direct is the front runner in no frills online banking which is headquartered out of a converted warehouse in New England. Despite their no frills approach they have been doing very well for themselves, they have shown increasing profits, and have surpassed E*trade as the largest online financial institution. ING Direct is also FDIC insured and backed by the ING Group from the Netherlands.
ING's main feature is it's high interest rate, and $25 sign up bonus fee. ING is able to give such great rates and bonuses because they don't have to spend money building branches, paying tellers and bank managers, etc. Because of this, brick & mortar banks just can't compete with ING's rates.
ING also offers a wide variety of account options. They have their flagship ING Direct Orange Savings Account which currently has a 3.0% Interest rate. They also have CD's with high rates and they have a CD ladder account making it easy to open several CD's for varying periods of time. ING also offers home loans, and investment accounts, but I have only had experience with the Savings Account.
Now on to the actual bank. The sign up process is easily completed online within minutes and their website is very simple and intuitive making it easy to navigate. It is one of the better designed websites I have seen on the internet. The login is secure, and asks for a customer ID #, pin #, and some random personal information that you supplied when signing up for the account.
Now nothing is perfect and that includes ING. The first big downside is they don't offer checking accounts because it would cost more. Also when withdrawing funds from you ING account it usually takes about 2 business days for it to clear.
I highly recommend ING and I have had a good experience with them. Their customer service was helpful and quick when I had to verify some personal information.
Following the BOE's decision to not change interest rates, Ing Direct savers are now suffering their month of sub-optimum interest rates (as well as the up to four day delay, and loss of interest in money movements). When will it end?
I moved my savings, did you?
Instead of closing your account, why not just leave a balance of £1? When (if) it becomes competitive again, it will be easier to transfer money back instead of the hassle of opening a new ING account.
I've got my savings in ING at the moment - is their rate still 4.5%? My other savings is with Nationwide e-savings which is 4.75% at the moment. Is it really worth switching for 0.25%?
Well despite the teething problems quite a few have had, mine's in ICICI at 5.15% AER. Note that ING's is 4.5% AER, not 4.5% Gross. Nationwide is 4.75% AER/Gross
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