Electric Orange rolls out to targeted ING Direct customers
Posted by Trey Reeme on November 30th, 2006
Via the Bank Deals blog, ING Direct has made their Electric Orange online-only checking account available to 400,000 of their most active customers.
ING Direct officially launched their Electric Orange checking account to targeted customers today. I logged into my ING account and noticed the invite. In addition, they provide all the details. Unfortunately, this information is only available when you’re logged in.
I wasn’t expecting the rate tiers. It’s the best interest rate for any checking account that’s nationally available. Unfortunately, you need a lot to receive this yield. Balances over $100K earn 5.30% APY. Balances between $50K and $100K earn 5.05% APY, and balances under $50K earn 3.00% APY. As is typical with rate tiers, once your balance reaches the tier, the interest for that tier is paid on the entire balance.
We’ve covered it here, here, and here. I was beginning to think it wasn’t going to happen.
Well – isn’t my hubby special! He got the email about the product last night – and promptly switched his balance from his ING Savings to the Checking. (Due to the great rate tiers – he can earn even more in Checking for his balance than the great Savings rate!)
I didn’t get an invite – <sigh> – so I guess I’ll have to wait my turn.
An interesting wrinkle: “It’s America’s first paperless checking account and you can be one of the first to have it.” They mention sending free “electronic checks” to people / billers – but no mention of ordering paper checks… Maybe this account doesn’t have them?
But – with a free check card – who really needs paper checks anyway?!
Hey guys, I know this doesn’t really go here, but I’m not sure where else to put it. So . . .
Are there any more games in the works? Because as much as I love jumping that pit to the credit union and getting past the bankers, I am kinda hoping I can replace it with something new sometime. :)
Jessica – No games in the works right now :(, but you never know. Our next big Open Source CU project is a total redesign, which is in the wireframe stage right now.
V, I’m upset that I didn’t get an invite either. I’ll just have to wait until February. It feels like I’ve been left out of the club!
An old WSJ article (subscription required) doesn’t shed a lot of light on the paper check issue, but it says,
I don’t know if that means you can get a stack of preprinted checks for use on your printer at home, or if they’ll issue paper checks like I believe some bill pay platforms do.
I received the invite – there are paper checks but it’s kind of rigorous… from the FAQ:
Send Paper Checks
How does the Send Paper Checks service work? It works just like your paper checkbook, but here you’re writing a check with your computer, not your pen. So it’s your online checkbook. That means it’s more convenient and saves money (you don’t have to worry about a stamp, envelope and getting to the post office), and it’s faster (we will send it via first-class mail the next business day after your request is made). In order to make payments for you in the most efficient way possible, if we can send a payment that you initiate using the Paper Checks service electronically, we will do so.
When should I use the Send Paper Checks service? What can I use it for? For starters, if you need to get a payment to your recipient overnight (like for a past due bill), it’s the way to go. You’ll also want to use it to send checks to individuals, in case they can’t accept an Electric Check payment. For example, if you need to send money to your Aunt Mae and she doesn’t have computer access, you can send her a paper check. Another example is paying rent to a landlord. It’s also really helpful if you know you’re going to need a check for payment. For example, your son’s soccer team fee is due, you can mail yourself a paper check made out to the team, and hand it to the coach in person. Just make sure you do it several days in advance.
How much does it cost to use the Send Paper Checks service? This service is free for checks sent via first-class mail. There is a $15.00 charge to send a check by courier the next business day – about the cost to send an overnight package.
What is the cut-off time to use the Send Paper Checks service to send a check via first-class mail? You should submit your request by 11:00 pm ET in order for it to be sent via first-class mail the next business day. If it’s a Saturday, it will be processed and sent on Monday. Checks sent via first-class mail will arrive in 2-5 business days.
What is the cut-off time to use the Send Paper Checks service to send a check via Overnight Courier? You must submit your request on our website by 3:00 pm ET in order for us to process it for next day delivery (unless it’s Saturday or Sunday, in which case it will be sent on Monday and arrive on Tuesday). And if you send a check on a federal holiday; the check will be sent the next business day.
No – you cannot get a stack of paper checks. You cannot even order checks from a 3rd party (they’ll bounce, according to the CSRs). You can mail a check to anyone with with Send Paper Check feature. I’ve signed up and if anyone is interested, I can send screenshots, other features, etc. Just email me. whp8002@hotmail.com
I’m very excited about this since there are essentially no fees. I’m tired of getting nickeled and dimed by regular checking accounts (especially the “Free” ones). Plus I’ll be earning a great rate.
I’ve seen some credit unions start to compete with ING by offering large CDs for short terms to bring in members. Promotions like a 7% interest rate up to a capped figure for set number of months. On the transaction side, most credit unions have far superior checking and ACH transfer services.
Rob – We did this at the beginning of the year, offering a 7 month CD at 7% up to $2500. We had a LOT of response from that. FYI. :)
I’ve seen that tactic used as a way to draw in short term deposits – and possibly as a “reward” for opening new checking accounts…
I haven’t seen anybody address the physical deposit issue yet. With ING’s savings it is no big deal because you have to have a checking account elsewhere already. But if I were to make Electric Orange my primary checking account, how would I deposit the cash I get from grandma this Christmas?
I have Electric Orange, and it does allow you to mail in checks for deposit (or you could deposit them to another bank’s checking account, and then transfer the money).
From the Electric Orange FAQ:
How do I make deposits into my Electric Orange? You can make deposits by setting up a Direct Deposit into your Electric Orange. You can also transfer money from another ING DIRECT account or a linked checking account into Electric Orange. This is done by clicking on the Transfer Money tab while you’re logged into ingdirect.com or by calling the Interactive Phone Service (1-888-ING-7868). Or, you can mail in checks to us at ING DIRECT, P.O. Box 60, St. Cloud, MN 56302-0060. If you choose to mail us a check, remember to write your Customer Number and account number on the front of the check.
Heath, Thanks for the info -
So I’m assuming that there’s not a process to have your funds immediately available, which I’ve heard some FIs do offer for mail-in deposits. (You know, a system where you could enter the deposit amount that you’re mailing, and have the funds – or at least a portion thereof – available immediately.)
There’s no system for immediately-available funds with check mail-in deposits. You’re correct.
Bill Pay is kinda odd too. I’ve noticed that some bills it pays with electronic fund transfer, and some with a paper check. All you give them is an address, name, your account number, and the phone number of the business. I guess ING is calling up the businesses to ask about electronic transfer? And setting it up if they can?
My employer pays me via direct deposit. I have my direct deposit set up so that a small amount of my check goes into ING (Like $25). When I do the direct deposit the funds are available on INGfor immediate withdrawl. I wonder if Direct Deposit will be available with this account. It all looks interesting. I am tired of getting fees here and there. I made a deposit to one bank. They charged me a $2.00 fee because I didn’t tear all the tabs off my check. (What!)
Countrywide offers 5.40 APY on their linked acct, and you don’t have all the gimmickry like electrical checks, ATM card, etc.
Yeah, Countrywide has a great APY that they counter with all those fees! Visit their site and read all about the fees they charge to earn back that 5.40 they pay out. Not to mention you have to have $1000.00 to start the account and $50,000 min balance to get that “great” rate. And what’s gimmickry about electrical checks and ATM Cards (free of surcharges!)...get with the times.
Over the past few years, the ING Groupe has come under considerable scrutiny for a series of questionable business and investment practices. Check out the facts at www.can-you-trust-ing.com
I looked at Countrywide. The fees and minimum balances are God Awful. My Paypal account does better than that.
Just about every company that has a high volume of customers will always have scrutiny. I had a savings account with ING since 2003. Great Rate.. No problems.. No hassle. I called customer service on several occasions. I never had to wait on hold for more than 30 seconds. Every agent I talked to was very polite. Can I trust ING? Lets put it this way.. I watch my accounts like a hawk. I never had any fees taken out. and if they go broke I am FDIC insured anyway. Yes.. I trust them..
Rates with a 1,500 balance..
ING Direct…4.50% Paypal… 5.03% Countrwide Savingslink… 4.00% Emigrant 5.05% HSBC direct 5.05%
I have been with ING DIRECT since 2000, no fees, no mins, etc. Just like they promise. The service is great, website easy to use. Now Electric Orange, what more could you ask for? In my opinion, they are the only reason we even see rates like 4.5%apy. Banks never used to offer deals like this to their customer. Before ING, I was just used to being ripped off by the fees and .20% rate! It cost me more to bank with my previous bank than I ever made in interest. $12/mth to have an acct, atm fees, research fees, it was like they were charging me to hold my $$. Knowing full well they were investing that $$ elsewhere.
I hear Paypal is planning to roll out a simular checking account service. But ING needed to beat them to the punch.
As far as I know funds on Paypal are not FDIC insured.
This was a great checking account. I say “was” because apparently, after hyping the Electric Orange account via e-mail and a number of postal mail blasts to existing Orange Savings customers, ING thought better of their offering and decided to exercise their rights outlined in the very small fine print of the disclosure agreement; checking the credit scores of those they invited to open an account 60 or more days after opening them.
I received an e-mail from ING yesterday at 4pm informing me that they had obtained my credit score from a consumer reporting agency and had decided to close my Electric Orange account and reduced my overdraft line of credit to $0.I was, however invited to re-apply after a 30 day wait. I called the customer service line to protest advising them that I had been a long term customer since 2003, had used my overdraft only three times and had paid it back promptly, even before the payment was due. I also reminded the representative that I had a regular deposit which was coming directly from my paycheck, all to no avail. They had made a decision and had no intention of reversing it, despite the fact that their major pitch in advertising the Electric Orange account was that they would not, in their own words, “Ding your credit with an inquiry”.
The representative placed me on hold to speak further with a manager, and left me there. I hung up and redialed as I decided to close all of my accounts with ING. I got another representative who explained that the institution had recently decided to exercise its right under the disclosure agreement and run credit checks across the board. I assume they decided that they had openened themselves up to a great deal of financial risk by giving everyone who opened an account an open ended $165 line of credit. I pity the individual who came up with that idea. In hindsight, I suppose I was naive in thinking that a bank as large and profitable as ING could be successful offering such an “unsecured” product. Needless to say, I have decided that this across the board decision, along with the 3-4 business day delay in moving money between linked accounts, and the additional delay in crediting “good” funds received from an electronic deposit, is a little more than I am willing to put up with as a good customer.
I have closed my ING accounts and transferred my money to an institution that treats its customers with a little more respect and courtesy than what they afforded me in this situation. I doubt that my little piece of business will make much of a dent in their profitable operation, but I feel an obligation to let everyone know about what I consider to be a dirty, underhanded trick.