Synopsis
Have you ever heard of the rich having a financial account? Money market accounts are where the rich put their money while it is not being invested. There is no risk of losing the money market account, but they give quite high returns.
Well, I was never rich enough to afford the trade. I was able to do the best I could when I was in my savings account in the offense I earned. Or I could put the money in a CD, but not have access to the money for a few months.
Recently, we have regular people access to our version of the financial market. I use ING Direct and absolutely love it!
What is ING Direct?
ING Direct is a bank that offers advanced online savings accounts. If you put your money in ING Direct’s Orange Savings Account, they pay you 4.5% interest per year (APY) on that money. This is significantly more than a traditional savings account, which I’ve found tends to pay off such a large amount that I forget I’m even earning interest.
Why do they offer a higherinterest rate?
In fact, ING Direct has lower overhead costs than traditional banks. Some have branches, but you probably can’t walk into a bank and have your money in your hands minutes later. Since their costs are lower, they can pay you more.
How does it work?
First, open your ING Direct account. Next, link your ING direct account to your current bank account. Ideally, this will be a bank account check account. From there, you can transfer money between your account and ING Direct whenever you like.
Here’s how I manage. I keep any money in checking that month. I keep the rest in my ING Direct account, earning a higher rate of return. If there is more cash left, transfer the money from ING Direct to a savings account. This usually takes a few days. To be safe, I assume it will take a full week for the money to transfer. If there is a chance that I need the money in a week or less, I keep it in check. In the end, my ING Direct account works like a money market account.
Can I lose my money?
Yes, your ING Direct account is FDIC insured, just like your regular bank account. This product follows all the same rules for savings as with larger care.
Special Offer
If you are looking to deposit $250 or more into ING Direct, then I have a special offer for you. For current ING Direct customers, I can send you a special link. Once you sign up through this link and deposit $250, ING Direct will give you another $25 for free. If you would like to take advantage of this special offer, just send me a message with your email address and I will tell ING Direct to send you the offer.
Super Rating
If you don’t have this type of work, I highly recommend you try it. ING Direct offers a great rate on its Orange Savings product, with a great web interface, and fast transfers to and from your current account. A competitor, HSBC Direct actually pays even more, but I haven’t used HSBC so I can’t attest to their quality. For now I highly recommend ING Direct.
