Skip to main content
No. of Recommendations: 0
Received this in my e-mail today:

**********************************
It's here!
The new account from ING DIRECT that delivers the access and convenience of checking with the earning power of savings.


As an ING DIRECT Customer, you believe in saving and know we try to make it easy for you to save more—without hidden fees and catches. Many of you have asked when we would do for checking what we did for savings. We have an answer! It's called Electric Orange and it's exclusively for you. It's America's first paperless checking account and you can be one of the first to have it.

Electric Orange is everything you'd expect from ING DIRECT and more:

It pays high interest
* 5.30% APY on every dollar for balances of $100,000 or more
* 5.05% APY on balances between $50,000 and $100,000
* 3.00% APY for balances up to $50,000
* A MasterCardĀ® Debit Card for purchases
* Free ATM access at more than 32,000 locations nationwide
* Free Bill Pay
* Send money securely to anyone for Free with Electric Checks
(Annual percentage yields apply to your entire balance. All listed rates are variable and effective as of 11/29/06.)

Electric Orange - the checking account that
thinks all your money deserves to make money.

****************************

As I have recently moved, I'll need to switch banks soon. I'm intrigued enough to consider this product, even though I've moved my e-fund from ING Direct to Emigrant Direct due to the latter's higher interest rates.

Anyone have an opinion about this new offering?


CPAScott
Print the post Back To Top
No. of Recommendations: 0
* 5.30% APY on every dollar for balances of $100,000 or more
* 5.05% APY on balances between $50,000 and $100,000
* 3.00% APY for balances up to $50,000

Does that mean that if your balance is between $50k and $100k, you earn an APY that's between 3.00% and 4.52% depending on what your balance is, or does it mean you earn 5.05% no matter what your balance is? They're clear for the below-50k and above-100k cases, but not for the inbetween.

effective as of 11/29/06.

Note that's over a month ago. Guess they're rolling this out in stages.
Print the post Back To Top
No. of Recommendations: 0
It sounds great to me.

I have my efund and mortgage there so a one stop shop for me would be great!

I may start with a small account and just a few bills to see how it works. If I like it then I will move everything there.

Is it available now?
Print the post Back To Top
No. of Recommendations: 0
Anyone have an opinion about this new offering?

When ING sent me promotional material a few months ago, this was a "checking" account with online bill pay, but without physical checks. That means I can't use it to pay anyone who can't be paid online. No checks to my church, no checks for alimony, no checks for any bills that I only need to pay once. That answer pretty much deep-sixed the idea for me, because I wasn't willing to juggle and ING bill payment account plus my existing checking account.

I haven't seen the latest, so perhaps they have corrected that flaw. If I can get 3% interest on a real checking account with physical checks in addition to online bill payment, I'd be tempted. Of course, if I closed my current checking account I'd have to figure out how to transfer between the proposed ING checking account and the higher-yielding Emigrant and HSBC savings accounts.

Patzer
Print the post Back To Top
No. of Recommendations: 2
I can't use it to pay anyone who can't be paid online. No checks to my church, no checks for alimony, no checks for any bills that I only need to pay once.

You sure about that? Most "online bill pay" features will cut a check and mail it for payees who can't be paid online.

Of course, most of them refuse to have any dealings with government and court-ordered payments (taxes, alimony).
Print the post Back To Top
No. of Recommendations: 0
I seem to remember that when this new option came up earlier on this board:

http://boards.fool.com/Message.asp?mid=23967027&sort=whole

two flaws seemed to come out:

(1) ING would charge no ATM fees, but wouldn't cover any of the fees imposed by the ATM bank (unlike USAA and [I believe] WashMu);

(2) No actual checks, so how is this an improvement on the basic Orange Savings Account (which has a higher rate & ability to transfer money to linked checking account from which real checks can be written...though no direct ATM access, see flaw #1)?

Have either of these two flaws been remedied?

KM
Print the post Back To Top
No. of Recommendations: 0

I'd be interested in this Electric Orange if I hadn't already signed up with EverBank. EverBank has an answer for most peoples concerns on this thread: paper checks, reimburses ATM fees, free bill pay (with a maintained min. of $1500)...the barrier to entry is the initial deposit of $1500 and the 'free' bill pay and opening yet another account with another institution. Overall I'm very happy with Everbank and ING Direct and my newly opened Grand Yield Direct (Apple Bank) accounts.

-Ben
4ml9kochb
Print the post Back To Top
No. of Recommendations: 0
Most "online bill pay" features will cut a check and mail it for payees who can't be paid online.

Of course, most of them refuse to have any dealings with government and court-ordered payments (taxes, alimony).


Yeah, my existing online bill payment works fine for entities that can be paid by a 3rd party check with an account number noted on it.

That doesn't work for church contributions. It would require that I harass the volunteer labor financial secretaries with a requirement to receive said third party check (presumably with my envelope number in place of an account number) and also submit separate paperwork as to how the check is to be distributed between the various church funds I contribute to. I might be willing to harass paid labor at a corporation with a task like this, but the volunteer labor here are friends of mine. I'm not going to do that.

My existing online bill payment specifically says I can't pay government or court-ordered payments. While the system allows me to pay the water bill online (water system is technically owned by the county), messing up the alimony payment would have really nasty consequences.

And I just remembered property taxes! To get a receipt for itemized deductions, I have to send their paperwork back with my payment. So either I can't use the system to pay my property taxes, or I can but I lose the income tax deduction. In either case, the answer is to make time during government business hours to go pay my taxes in person so I can get a receipt. Or maybe I have to get a money order. In any case, this isn't a total solution to replacing the existing checking account.

Patzer
Print the post Back To Top
No. of Recommendations: 0
I've already signed up for it and moved some of my money there from my company's direct deposit. I want to "sequester" my snowball into an account that I can monitor and keep away from the day-to-day stuff, and this is perfect for me.

So far, I've made 3 bill payments out of it. Not hard to use, and ING-efficient.
Print the post Back To Top
No. of Recommendations: 2
To get a receipt for itemized deductions, I have to send their paperwork back with my payment.

Actually, ING kind of has a way to deal with that. They will send YOU a paper check made out to someone else, and let you stick it in an envelope with that payment paper. Takes a little longer and doesn't work for those spur-of-the-moment "we only take cash or checks" type payments, but if you know you're going to have to send a check to someone by a certain date, it can work.
Print the post Back To Top
No. of Recommendations: 0
That doesn't work for church contributions. It would require that I harass the volunteer labor financial secretaries with a requirement to receive said third party check (presumably with my envelope number in place of an account number) and also submit separate paperwork as to how the check is to be distributed between the various church funds I contribute to. I might be willing to harass paid labor at a corporation with a task like this, but the volunteer labor here are friends of mine. I'm not going to do that.

It is worth asking the volunteers how much extra work it would be. I record contributions for my check and we get third party checks all the time. It really doesn't add much to the processing as most bill paying services allow space to write comments explaining the various funds people want the money to go to.

I don't know how your church works, but it might be worth asking if it is something you would take advantage of.
Print the post Back To Top
No. of Recommendations: 0
Do you have to get the email to sign up? I could not find out how on their website?
Print the post Back To Top
No. of Recommendations: 3
If I can get 3% interest on a real checking account with physical checks in addition to online bill payment, I'd be tempted.

Bank of Internet ( www.bofi.com ) pays 3.4% APY on its Freedom checking account. The Senior (over 50) account pays 3.65% APY.
Print the post Back To Top
No. of Recommendations: 1
Bank of Internet ( www.bofi.com ) pays 3.4% APY on its Freedom checking account. The Senior (over 50) account pays 3.65% APY.

And their MMA, which you can transfer between itself & checking freely, pays 3.9% APY. Don't use it too often, since we keep most of the money in ED, but sometimes it comes in handy.

Ken (long-time, happy BofI customer)
Print the post Back To Top
No. of Recommendations: 2
They will send YOU a paper check made out to someone else, and let you stick it in an envelope with that payment paper. Takes a little longer and

And you stop earning interest the moment they cut the check, but the payee doesn't get the money until they cash it. So it transfers the float from you to ING.
Print the post Back To Top
No. of Recommendations: 2
CPAScott,

You wrote, As I have recently moved, I'll need to switch banks soon. I'm intrigued enough to consider this product, even though I've moved my e-fund from ING Direct to Emigrant Direct due to the latter's higher interest rates.

Why would any individual want to put more than $100,000 in a checking account? If nothing else, it puts you over the FDIC insurance limit.

When I got this offer I tossed it. It requires too much on deposit to be worthwhile to me and my current bank is a better fit anyway.

Presidential Bank has been paying 4.50%APY on balances up to $25,000 for quite some time. That's what I use. Of course you have to sign up for direct deposit with an employer, so if you're retired or self-employed, it can be a problem.

- Joel
Print the post Back To Top
No. of Recommendations: 0
Presidential Bank has been paying 4.50%APY on balances up to $25,000 for quite some time. That's what I use. Of course you have to sign up for direct deposit with an employer, so if you're retired or self-employed, it can be a problem.

What happens if the direct deposit stops because you lost your job?

Patzer
Print the post Back To Top
No. of Recommendations: 0
I also use and very much like Presidential.
Print the post Back To Top
No. of Recommendations: 1
It requires too much on deposit to be worthwhile to me and my current bank is a better fit anyway

And I think this is the important point. Banks like Presidential and Bank of Internet don't meet my personal needs, because they both require a minimum balance. ING fits much better, because the account I need is a "mad money" account which rarely holds more than 1k at a time - often much less.

My current mad money account is a Citibank e-savings/checking combo, which does pay more interest than ING, but is a PAIN to use. For the amount of money I put in, I'll take the slight cut in interest for ease of use. The only thing I wish ING had in this current version of the account is bill presentment, which is why I refuse to move my primary account there.
Print the post Back To Top
No. of Recommendations: 0
Try First Internet Bank of Indiana:

Interest is lower (1.46%), but the "minimum" is a $500 average daily balance, which if you use it as your main checking account is no problem to meet.

Free Billpay, and they refund other banks' ATM charges (and you don't have to send in ATM receipts to get your rebate) up to $6 a month.

And they also make it easy to electronically "pull" money from another account at another bank.

Bruce
Print the post Back To Top
No. of Recommendations: 0
Try First Internet Bank of Indiana:

Consistently excellent customer service.

rad
Print the post Back To Top
No. of Recommendations: 0
Try First Internet Bank of Indiana:

Funny you should mention them...that's where I hold my primary accounts :-). I still haven't found anyone with a better overall package for our day-to-day needs.
Print the post Back To Top
No. of Recommendations: 1
And I think this is the important point. Banks like Presidential and Bank of Internet don't meet my personal needs, because they both require a minimum balance.

Bank of Internet requires an average balance of $1,000 to avoid a monthly fee. Anyone keeping less than that in their checking account is not going to gain much by choosing an interest-bearing account anyway. For example, an average of $500 at 3.4% only produces $17 in interest per year.
Print the post Back To Top
No. of Recommendations: 0
Bank of Internet requires an average balance of $1,000 to avoid a monthly fee. Anyone keeping less than that in their checking account is not going to gain much by choosing an interest-bearing account anyway.

Also, Senior Checking & Boomer Checking from BofI have no miminum balance requirements. (Their MMA account, OTOH, has a $1500 minimum.)

Ken
Print the post Back To Top
No. of Recommendations: 0
And I just remembered property taxes! To get a receipt for itemized deductions, I have to send their paperwork back with my payment. So either I can't use the system to pay my property taxes, or I can but I lose the income tax deduction.

Maybe your county is different than mine, but I used on-line bill pay to send the county a check for my personal property taxes, and they mailed my receipt to my house with no issues.
Print the post Back To Top
No. of Recommendations: 0
Why would any individual want to put more than $100,000 in a checking account?

It doesn't require a deposit that large. It doesn't require a deposit of any size whatsoever. Deposits of $100,000 or more earn the highest percentage, that's all. I wouldn't advise keeping that much there either!

Actually, as I've now learned that there are no paper checks with this account, it is no longer of interest to me.

CPAScott
Print the post Back To Top
No. of Recommendations: 1
Pazter,

I wrote, Presidential Bank has been paying 4.50%APY on balances up to $25,000 for quite some time. That's what I use. Of course you have to sign up for direct deposit with an employer, so if you're retired or self-employed, it can be a problem.

To which you replied, What happens if the direct deposit stops because you lost your job?

Simple enough. I downgrade my account to the basic Internet Checking account (to avoid the maintenance fee; pays 1.25%APY), start keeping closer tabs on my expenses and shift everything that's not absolutely necessary from my checking account to higher yielding savings. Once I get a new job, everything reverts...

- Joel
Print the post Back To Top
No. of Recommendations: 1
sunflare,

I wrote, It requires too much on deposit to be worthwhile to me and my current bank is a better fit anyway

To which you replied, And I think this is the important point. Banks like Presidential and Bank of Internet don't meet my personal needs, because they both require a minimum balance. ING fits much better, because the account I need is a "mad money" account which rarely holds more than 1k at a time - often much less.

My current mad money account is a Citibank e-savings/checking combo, which does pay more interest than ING, but is a PAIN to use. For the amount of money I put in, I'll take the slight cut in interest for ease of use. The only thing I wish ING had in this current version of the account is bill presentment, which is why I refuse to move my primary account there.


Why would you even be looking for an interest-bearing checking account if you never plan to have more than $1,000 in it at any one time? Most banks have minimum balance requirements for checking accounts. Any resulting maintenance fees would consume your interest earnings very quickly.

- Joel
Print the post Back To Top
No. of Recommendations: 1
CPAScott,

I wrote, Why would any individual want to put more than $100,000 in a checking account?

To which you replied, It doesn't require a deposit that large. It doesn't require a deposit of any size whatsoever. Deposits of $100,000 or more earn the highest percentage, that's all. I wouldn't advise keeping that much there either!

If you're not opening the account to earn one of those top two tiers, I happen to think you'd be wasting your time since you can get as good or better deals elsewhere.

This offer kind of reminds me of Countrywide Bank's initial high-yield Internet savings account offer. They were offering a very impressive yield on >$100K balances. The tiers below that weren't very impressive.

Interestingly Countrywide seems to have rectified that mistake. Today's offering (5.40% APY) is good for amounts >$50K. And even the more mainstream $10K - $50K tier also pays a respectable 5.25% APY. Even the <$10K tier pays 4.00% APY, making Countrywide's current offering a reasonable offering for a wide range of potential customers. It's just too bad Countrywide didn't make these changes before they did that big advertising push last summer.

ING Direct's new checking account campaign seems to be a bit low-keyed. Perhaps a cold reception by their existing customers will lead them to offer something a bit more mainstream too.

- Joel
Print the post Back To Top
No. of Recommendations: 1
Why would you even be looking for an interest-bearing checking account if you never plan to have more than $1,000 in it at any one time? Most banks have minimum balance requirements for checking accounts. Any resulting maintenance fees would consume your interest earnings very quickly.

Mainly, because the account I had it in *was* interest bearing (a credit union), and there are now a lot of choices for accounts with interest rates higher than what I had for no or very little minimum balance and no fees (some local banks, other credit unions, Citi, USAA, etc.). As I said, this is my "allowance" account - our main account is comfortably at First IB. Why shouldn't I look for the best deal for my money and my usage, even if I don't keep a large balance in that particular account?
Print the post Back To Top
No. of Recommendations: 2
Why shouldn't I look for the best deal for my money and my usage, even if I don't keep a large balance in that particular account?

Because with each additional account there is more work and hassle (tax reporting, making sure it doesn't go below the min balance)
Print the post Back To Top
No. of Recommendations: 2
Because with each additional account there is more work and hassle (tax reporting, making sure it doesn't go below the min balance)

*shrug* To each his own. Personally, I don't think it's that much added work (one sheet of paper, adding an alert in Quicken to scream at me if I get too close to the minimum balance - which usually doesn't come into play since 99% of the accounts I have don't require one - etc.), considering that I'm replacing accounts, not adding new ones. This is especially true if any account I open is with a company that I already have other accounts at (USAA, ING), as they're already sending me paperwork.

But then, that's me. I can tell someone, off the top of my head, the balance/due date/billing date/interest date and rate of every single account I have to within $100 and a day or two, because that's just...what I do. It'd be a very long, boring list for the listener, though :-)

Others may not have the OCD-ish mind I have for my finances, and that's probably a good thing *g*. The time to effort ratio would be much higher, and it would be, as you said, much more of a hassle.
Print the post Back To Top
No. of Recommendations: 1
I've paid my property taxes using an on-line bill payment system for several years. I put the tax ID number on the check as the account number. It gets cashed, and about a week or so later the tax collector sends me a paid receipt. Works fine for me.

Cap
Print the post Back To Top