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The Benefits Of A Decent Interest Rate In Your Checking And Savings Accounts

by The Happy Rock on February 2, 2008

ing-snowboard-ad.jpgHooray for ING Direct. I made $1000 dollars of income in 2007 with no effort! I just got my tax sheet for my ING accounts and saw that I made $99.77 from interest from my checking account and over $900 from our dozen or so ING savings accounts. I would have made $200 from the Electric Orange account, since my first direct deposit was the first week of June. Not bad at all.

Now, because of the Fed’s willingness to tinker with rates at the drop of a hat, the interest rate on the checking is currently 2.25% and 3.4% for savings. The rate when I signed up was close to 4% for checking and closer to 5% for savings, so I won’t expect to make nearly as much this year. I still can’t argue, since I had been earning nothing on that money for years.

The other side benefit is that transfers between Electric Orange Checking accounts and ING savings accounts are instant, rather than the 2-3 days that it took when I had a linked checking account. So not only am I making money while the deposit sits in my checking account, I am also making money during the 2-3 days while the money used to change hands.

ING Direct is awesome. Best account interface that I have used, perfect stability and a reputable name with a long history. Some people like to chase the best rate; I prefer the simplicity and stability of sticking with a competitive trusted friend.

On a side note, if you have any questions about my ING setup or ING directly, just leave a comment. Also for those that do not yet have an account at ING, you can get $25 free dollars just for opening an account with at least $250. I will also get $10 for the referral.  Just Email Me, and I will send you a referral email.

{ 5 comments… read them below or add one }

Lulugal11 February 2, 2008 at 10:35 am

I have used ING for a few years now too. I do not have as much money as you do to get all that interest but I still love my account.

with all of the rate drops I decided to just stick with ING because rate chasing is not for me. Most people do not realize how much they lose when the money is in transit from all their moving around.

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The Happy Rock February 12, 2008 at 10:26 am

@lulugal11 – I agree completely. Thanks for the comment.

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brody February 14, 2008 at 3:48 pm

Another benefit of transferring between Electric Orange checking accounts is that their is no limit as far as I know. The Orange Savings accounts have a limit of 6 transfers (deposits or withdrawals) per month according to some bogus federal law, and you get fined if you go over. That’s one of the reasons I started looking for a checking account sans overdraft fees or transfer limits. Also, I don’t mean to crash your party, but the high rate of inflation (~%10) will wipe out any gains you get from the account and then some. It’s better than nothing, but shouldn’t be relied on for savings or investment.

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forummekan.org March 20, 2008 at 5:20 pm

Another benefit of transferring between Electric Orange checking accounts is that their is no limit as far as I know. The Orange Savings accounts have a limit of 6 transfers (deposits or withdrawals) per month according to some bogus federal law, and

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fpeters May 1, 2008 at 9:31 am

I love ING Direct. I recommend it on my blog. It is a great high interest savings account. I agree with you that having an Electric Orange checking account make ING Direct that much better.

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