ING Direct Electric Orange Checking Account: Feature Review
ING Direct is trying to stir things up again by rolling out a new high-yield Orange Checking account. Paradoxically, there will be no checks. Initially available only to “active” users of their Orange savings account ($25 signup promotion), it is not available to everyone. It offers the following features:
- 1.75% APY if your balances is under $50,000, 3.20% APY for $50-100k, 3.40% APY for $100k+
- No minimums or monthly fees
- Free ATM access at 32,000 locations nationwide
- Free BillPay and Debit Card
- No checkbooks, but you can send paper checks online.
My initial feature review:
Interest Rates - The rates are above average, but not the best. The fact that it has no minimum balance does make it unique. Otherwise, if you can satisfy some minimum balance or direct deposit requirements you can get a higher rate at various other banks including Everbank. It’s interesting to note that ING has added a tiered system now. I would remember to be careful not to exceed FDIC insurance limits.
No ATM rebates? - It turns out those “32,000 locations nationwide” are the AllPoint Network. These ATMs are often in random restaurants, so you have to go during business hours. I was hoping for something special, like the ATM fee rebates that Everbank and others provide.
Must Mail In Checks - This is my main annoyance with all online checking accounts. You can’t make deposits via ATMs, so you have to snail mail them in. Besides having to pay extra for postage, it only takes one lost check to cause a huge headache.
What Do You Mean, No Checks? - This is supposedly the most innovative thing about this account. They don’t give you checks, and you can’t even buy third-party checks with your account and routing number. You can request paper checks to be sent to specific people online, or you can send them an “electric” check with their account and routing number.
Conclusion
From the features list and what I’ve read about ING Direct’s customer service history, I think this is a decent product. Much like their savings account, it does not have all the best features, but due to it’s relative simplicity it will work for a lot of people. If you can live with mailing in all your check deposits and live near some AllPoint ATMs, it could probably work as your main checking account. Otherwise, it may just be nice addition to your their savings account due to the lack of fees (if you use it).
Right now, I still think the best options are for people who live in a Citibank or Washington Mutual area to get a checking + 5% APY savings combo with them. You get checks, ATM deposits, high interest, and instant inter-account transfers to maximize your savings balances.
December 2nd, 2006 at 8:36 pm
I like the free ATM feature, but the electric checks is not very convenient at all. How many people are comfortable of giving me their bank account numbers? I probably will only use ING checking as a backup account for the free ATM cash withdraw. I checked on the AllPoint website and found about 20 ATM locations within the 5 miles of where I live.
December 2nd, 2006 at 8:44 pm
Well, every time you write anyone a check you give them your bank and routing numbers, so it’s not that big of a deal. You can still request a physical check be sent out instead.
December 2nd, 2006 at 10:10 pm
Interesting. I’ll probably still keep my checking with Fidelity though since I can have my core account set to a State Mutual fund that hits about 4.2% average. Plus I get free physical checks
December 2nd, 2006 at 10:25 pm
Eh. It’s not really a compelling product for me. I’m young, single, with relatively low expenses — I only maintain about $2,000 in my checking account, with the rest of my cash in an ING savings account. The small amount of interest I would accrue on the checking side isn’t worth the feeling of giving up paper checks, for now, at least.
December 2nd, 2006 at 11:53 pm
To cover the mailing checks in, ING should adopt a system much like USAA’s Deposit@Home, where you scan your checks from your house and it is credited to your account immediately.
I don’t see the reason to change banks though for ING’s e-checking, not many features entice me to switch.
December 3rd, 2006 at 7:52 am
Having the bank send a check sounds great until a check gets lost. I had an internet bank about 7 years ago, and three of my IRA deposits got lost between the bank and my mutual fund company. I eventually got it straightened out, but it’s pretty damned hard getting things right with two different companies over the phone. I eventually gave them each telephone numbers for the other’s customer service and permission to discuss my accounts. Paper checks issued from a bank in another time zone is not a road I intend to travel again.
December 3rd, 2006 at 12:50 pm
[...] Generation X Finance has 12 mistakes to avoid with your retirement plan. MyMoneyBlog has a review of ING Direct’s “Electric Orange” paperless checking account. [...]
December 3rd, 2006 at 2:19 pm
What I don’t get is why do they pay higher interest on checking (vs savings)? (OK, you need to have more then $50K to get that 5.05 rate, but still…)
December 3rd, 2006 at 2:20 pm
Just recently I closed my ING, HSBC, and WAMU accounts. I switched everything over to BofA. Assuming you have at least $50k across all your accounts, including investment, I found it to be the best choice for me.
Here’s why:
1) NEA sponsored CashMaximizer pays 5.37%
2) Free stock trades beginning Q1, 2007 (in my area)
3) You can get a MRA which is an account structure which basically combines your checking account and investment accounts into one. Every night your checking balance sweeps into a MM account which pays about 5%. Couple this with the CashMaximizer (which won’t sweep but will be a savings accounts similar to CITI E-savings, or WAMU savings), you will effectively earn about 5% on checking, 5.37% on savings, receive free stock trades, have access to the largest branch network, and most importantly of all, simplify your life.
The one drawback: BankOfAmerica phone system is a pain in the a$$. Lot’s of going back and forth to get something done but throw enough money at BofA ($100k across all your accounts) and you will get elevated to PremierBank status and receive better customer service. The $100k shouldn’t be that hard to do for many of you who probably have racked up $50-100k in 0% balance transfer fees.
December 3rd, 2006 at 9:00 pm
beside opening about 10 bank accounts for bonuses, here is my version of perfect banking.
Everbank 3.25% checking(no fees, no DD, atm rebates, free stamp mail in deposit, free bill pay, i can all add all my accounts on everything in this account)
E-Loan 5.5% Saving
December 3rd, 2006 at 11:19 pm
Do you really have to pay postage to deposit checks via mail? One thing I like about EverBank is they supply as many deposit envelopes as I want and pay for the postage on them. Otherwise, the feature list seems fine to me. Initially, I thought the lack of paper checks was stupid, but then I realized there’s still the ability to send people paper checks anyway.
December 4th, 2006 at 6:50 pm
Interesting product, but it’s not enough to make me want to open an account.
December 5th, 2006 at 8:16 am
Jonathan said: “my main annoyance with all online checking accounts. You can?t make deposits via ATMs, so you have to snail mail them in.”
I hadn’t even thought of this. I’m spoiled and live in the DC area where Presidential has all it’s branches, and constantly make deposits via ATM.
I guess if I were living where I couldn’t get the best of both worlds, I’d probably ignore the online checking accounts altogether and just have a nice savings/checking combo at the same bank where I could make instant transfers like I think Jonathan suggested.
January 27th, 2007 at 9:45 am
What do you mean, a checking account without checks? Like everyone else, I’m waiting for the Electric Orange online checking account from ING. I’ve tried the ING savings account, and it’s not bad. But I’ve been waiting awhile for ING to finally launch Electric Orange. I assumed ING was simply taking its time to work out all the bugs and provide a good product.
Electric Orange? After hearing the advanced buzz, I’m thinking Electric Lemon.
When I open an online checking account, I don’t want to regret not using a traditional kind of bank. In other words, you want ATMs. You want easy deposits. You want to write checks.
Electric Orange doesn’t offer paper checks. Rather, you must “write” a check online, and ING will mail it to the waiting recipient. Not exactly an ideal arrangement when paying the guy who cuts your lawn, right? I’m sticking with EverBank.
January 29th, 2007 at 3:39 pm
Your comment: “I am assuming that this also means you can?t link the checking account up to other online bank”. ING told me that you can link the Electric account exactly as you link the Orange account.
February 1st, 2007 at 11:15 am
I have an electric orange account. It is a bit different but let me try to clarify a few things.
ATM access is through Allpoint’s network without surcharge. There are several near where I live. ING has an ATM locater on their site that you can check before signing up.
Deposits can be done at a local bank of your choice into a local free checking account and then pulled (via ACH) to ING. No mailing costs involved. The pull takes about two business days to show up over at ING. Might not work for everyone but works for me.
Transfers back and forth from ING savings to electric orange checking are immediate so leave most of your funds earning higher interest in savings you can and transfer them over to checking as needed.
I’ve been using electronic bill payment for several years at other banks and I am comfortable with the process. Electric orange does their’s just like most other places. I had noticed over the last few years that it took me a very long time to go through a check book since I rarely write checks anymore. It just seemed like the next logical step to me to completely eliminate checks altogether at some point and that is what ING has done with this account. The few times I “need” to write a check, I write it from the local free checking account that I use for deposits.
Hope that helps someone.
A.
February 1st, 2007 at 1:01 pm
Andre,
I just opened my Electric Orange account and I’m planning on doing the same thing as you. Initially I was going to close my local bank acct, but for now I’ll hang out to it for deposits(mainly mileage checks) and things like change, and currency conversion, etc.
For those worried about paper checks, you might want to think about moving all your bills to online payment anyways. Much more secure than regular mail and payments are processed immediately. I bet even the paperboy these days would take an electric check, paypal or some other online payment.
February 20th, 2007 at 12:46 pm
How to use the ING Orange Savings account like a checking account.
This only works if you have a credit card which you can pay with electronic transfers. Preferably, one with no annual fees and good rewards, too. You also must pay off your credit card every month within your grace period. Then set up the ability to pay your credit card with transfers from your Orange Savings account.
1. Use your credit card to buy everything and anything, including utilities, insurance, etc. It’s best to buy your big ticket items the day after your credit card billing cycle ends. Of course, spend within your budget.
2. Save your credit card receipts and transfer the amount that you have just put on plastic from your linked checking account into your Orange Savings account immediately after your credit card purchase.
3. Ride the free credit wave and earn 4.5% APY (currently) in your Orange Savings account.
4. When you receive your monthly credit card bill, pay it online with a transfer from your Orange Savings account. Pay down your credit card to a balance of zero, and make the payment process two to three days before the end of your credit card grace period.
I know this sounds complicated, but I have been doing it for over 3 years with my Quicken Credit Card from Citi. I have never had a slip, don’t need to pay many bills, and have earned significant travel miles and Orange savings interest.
March 7th, 2007 at 10:08 pm
Eaken, I have never heard of anyone doing what you did, actually going to BoA from the banks you left. BoA is horrid in every way. Amazing.
I have been with Citibank and up until recently was happy with them. Now they charge 3% ATM fee for non-Citibank ATMs. I’m overseas most of the time so I’m finished with them. I have opened a WaMu account. Very happy so far - easy to open all online with online funding from the Citibank account (take that Citibank), 5% APY on the savings account, no fee non minimum checking, and for ATM withdrawals overseas a 1% foreign transaction fee - the standard except for some ripoff banks like Citibank.
March 20th, 2007 at 12:03 pm
One thing that people have to realize is that no bank or bank account can please everyone. They all do the best that they can for the people that they try to appeal to. I find that ING Direct’s Electric Orange works best for me. There’s never a time that I need paper checks (even if there was, I still have my linked traditional checking at US Bank), I have direct deposit, and I have plenty of free ATM’s to use. The functionality of Electric Orange is what I like the best, not the interest. Its easy to do everything (ex. bill pay, send paper checks, send electric checks) and even easier to keep my budget straight. I guess what I’m trying to say is that ING’s checking account is perfect for me and a LOT of other people, and I hope they eventually find a way to not have to have any accounts with another bank.
August 10th, 2007 at 2:29 pm
“but I am assuming that this also means you can?t link the checking account up to other online banks”
This isn’t true. I have an Emigrant Direct Savings (5.05%) That I got before I heard of ING that is linked to my checking account. While ING do not provide you with an actual voided check, they have a page that simulates a voided check with your routing number and info on it for linking purposes.
I’ve kept my other bank’s checking for depositing checks and taking out big chunks of cash, but I’ve been using Electric Orange for day to day banking and really like the features so far. I’m sure they will expand services soon.
September 13th, 2007 at 3:48 pm
Could someone tell me how far ahead they schedule their Electric Orange Bill Pay for their living expenses (utility bills)?? My current bank tells me how long it will take and I schedule accordingly. The Electric Orange info says “3-5 days”. Has anyone had a bill take longer than 5 days to post as paid?
I want to make the move to this account because my brick and mortar bank is going to start charging me for Bill Pay. Thanks.
October 7th, 2007 at 6:39 pm
I would like to correct something - it IS possible to accept deposits from foreign ATMs. I’ve been doing this with FirstIB for quite a while, and it’s very handy, and guarantees that the money gets to the account quickly. FirstIB has other down sides, but my point is that it’s possible. (I’m not a fan of their bill payment system - it won’t let you transfer money to people electronically, and their “send a paper check” system really stinks).
I think the banks are getting there. I’ve seen lots of great innovative features, just no one bank that has them all. They each seem to have their drawbacks…
March 21st, 2008 at 9:51 am
I didn’t see any mention of this, I LOVE my electric orange account, the best part of it, the overdraft credit. It is seamless and works like a credit card, and there are no fees for using it. It works by adding a little bit extra onto your account, when you use more money than you’ve got, say you have $50 and you charge $150. you use $100 of your overdraft fund and are charged interest on that $100. Next time you deposit more than $100 you automatically pay back that credit. and the only fee you pay is the interest.
May 8th, 2008 at 5:16 pm
Christopher, that sounds much better than Chase. I have an overdraft credit account, that Is somewhat like a credit Card. However, even though I have a Checking and Savings with Chase, If my checking account goes below the balance, they charge me a $10 fee. Then apply the credit to the account.
I called and asked them what was the point of the account if they’re going to charge fees? They said thats how the account is. So now I don’t let it overdraft anymore. I was only lax about it because of the protection account which I credit to 0 as soon as I get paid.
September 22nd, 2008 at 11:05 am
ING direct is the best. I am able to link all three of my accounts with ING to my one neighborhood account. I do any necessary local connections with my neighborhood bank, and transfer and change my accounts online with ING as much as I like. Even when I have called them to ask a question, it was the nicest and most helpful conversation and there wasnt 40 buttons to push before I actually spoke to someone.
I love it. Its made me manage my money bettter and they seem like they want to help you unlike my previous big bank experiences.
Highly recommended to all of my friends and family which a lot of them have now easily switched over.
The electric checks are awesome, as I am able to just pay the bill online as usual or send a check using the address (not needing the routing #,etc).
get online and do it now.
you will see quickly.
no fees, no crap.
just holding your money for you until you need to use it.
(what a bank should do)
April 8th, 2009 at 10:42 am
I just opened a savings account and a checking account with ING. The only complaint I have is that you MUST have a linked checking acocunt from an outside bank. Well what’s the point of having an ING checking account then, the attractive interest rate? I was planning on dumping my current bank, guess I can’t now. In my opinion if you have enough money to care about interest rates you should probably not be keeping it in a checking account anyways. Whatever. On the upside I guess I can split my direct deposit between the 2 checking accounts, thereby direct depositing my savings into my ING checking so that I don’t have to wait days for wire transfers to go through.
September 18th, 2009 at 11:13 am
I like what the following person said on March 21st, 2008 at 9:51 am
I need Overdraft protection.