I have been a member of online bank ING Direct since 2005, and I absolutely love being a customer. The interest rates are much better than my brick & mortar bank. As of this writing (June 30, 2008), interest rates on all savings accounts are 3.0 % APY. Nice. The checking accounts (called Electric Orange) are at 1.75% APY for balances up to $49,999. I tend to keep my money in my savings accounts, where it will earn a higher interest rate. But be aware: Just as it is with all other banks, you’re limited to six withdraws per month per savings account, so it might be in your best interest to keep money in your Electric Orange checking account.

Linked accounts

Your savings and checking accounts are conveniently linked together. You can easily create a new savings sub account and label it for your specific savings goals. For example, I have an account marked “Emergency Savings” and I also have one for “Car Insurance.” Soon, I’ll open more accounts for vacations, gifts, and more.

Your ING Direct account must be linked to a brick & mortar bank. You can transfer money back and forth from your banks, if you choose. Or, you can set up direct deposit for your ING accounts. Another option, which I’d definitely encourage, is to set up an Electric Orange checking account when you establish a savings account. You’ll receive a debit card, and you’ll have quick access to your money.

Online bill pay and check drafting

Just like many other banks, you’ll have the ability to pay bills online. If you prefer to send paper checks, ING will draft it and send it for you for no additional charge. This will work for sending a check to your landlord or to a friend–it doesn’t really matter. Please note that you will NOT receive a paper checkbook.

It’s not for everyone

As much as I love using ING, it isn’t for everyone. If solely banking online without the opportunity to stop in and talk with a bank teller makes you uncomfortable, then you’re best to keep your banking at a brick & mortar bank. And, if you typically need your money fast, you should remember that when you transfer money from your brick & mortar account to ING, it takes several business days for those funds to be accessible (there’s no lag time if it was direct deposited).

Investigate your options. Check out their site. Read more on why I love ING. And, if you decide you’d like to open an account with ING, please use one of my referral links below. When you open an account with an initial deposit of $250 or more, you’ll get a $25 bonus credited to your account, and I’ll get $10. Once you open an account, you’ll be able to refer people as well and earn bonuses.

Referral links

These links can only be used to open an account once, so if you see text that states: ” We’re sorry, but the referral link within the email you received has expired and is no longer valid. We recommend that you contact the sender and ask them to re-send the referral email. Or click ‘Continue’ to proceed with the application process without the account opening bonus.” then please try another link. I’ll update these links often, or feel free to e-mail me and let me know you need a link.

Thank you!

UPDATE: I have used all of my ING Direct referrals! This means that 25 of you have signed up for an account. That’s $625 in sign-up bonuses for you, and $250 for me! Oh yeah!

Now, I’m going to list referral links from other people who actively visit my blog. Links do expire 30 days after becoming active.

ING Direct savings account

ING Direct savings account

You can easily open a savings account after opening a checking account! And vice versa.