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I felt I had to do a Rick's Review on this one. I know many of you have probably been using online savings accounts for some time. But I also know there are many who don't use them and really don't understand them.
So let's talk about one of my favorites. It is ING Direct. You can check out their website at www.INGDirect.com.
I love to put money away in savings. It is fun to watch it grow. And you can actually watch it grow when you use these internet savings accounts. Some people still don't understand these types of accounts and they still use traditional savings accounts at local banks. The problem with local bank accounts is they pay us so little in interest.
There are many great internet savings accounts out there but I happen to like ING Direct. Here's why...
For starters, ING Direct currently pays 4.50% interest! Go compare that with what you are getting from your current savings or money market account. You'll probably be blown away at the difference.
Why does ING Direct and other online savings accounts pay us so much more money on our money? It's simple. They have lower operating costs since they have fewer employees to pay, no local bank buildings to keep up, etc. So they give us (the customer) the money that they are saving. It is a big win for us. If we are going to keep cash sitting some where why not let it make the most it can?
Another thing I like about ING Direct is it is very secure. If I'm going to store money some where I want to feel it is safe. There are several safety steps to logging in to help protect us and our money. And of course our money is FDIC insured just like at our local banks.
But one of my favorite things about ING Direct is it's ease of use. It is simple to use! And they don't use confusing lingo that is hard to understand. ING communicates in a language that any one can understand. I find it much different than the communication I get from other financial institutions.
There is really only one negative to an online savings account like those offered at ING Direct. That is that it takes 2-3 business days to transfer the money from the online account to your checking account so you can use the money. This may scare some people. But really all you have to do is figure out the amount of money that you feel comfortable having immediate access to and keep that money in your local savings account or money market account and then keep the rest in your online savings accounts to earn the highest interest possible.
Oh, and I almost forgot about this. There is no minium to open an ING Direct account and there is NO COST for it. You can start with $50 if you want to and you can set up as many accounts as you want.
So give it a try today. Start with a little and see how you like it. You may end up loving it!
I know there are several other great companies besides ING Direct so if you have used other online savings accounts, let me know what you think about them.