What's the catch with ING Direct?

ING Direct is able to offer better rates because they are an online-only bank, and so don't have the expenses associated with maintaining physical locations. There are other online-only banks as well.

In addition to online banks, I believe you can have accounts at traditional banks that don't even have a physical location near you. Different options are available to be researched at http://www.bankrate.com/.

I first read about ING Direct in a book by Christian author Mary Hunt, whose website is http://www.debtproofliving.com/.

In order to start an account with ING Direct, you have to have an account with a physical bank, from which your opening deposit will be transferred. There is no minimum opening deposit requirement, other than the fact you have to put some money into an account to open it, obviously, but they don't specify how much that has to be.

The directions on the site are very clear. The only fees might be if you overdraft, etc., but you'll have that with any bank. They tell you very specifically when you sign up. There are no monthly fees just to have an account.

The interest-earning checking account is a little different in that you cannot actually write paper checks off the account, but you can transfer money to other places to pay them.

There are ATM fees if you use a non-ING ATM as well. There are 32,000 ATMs nationwide (in the U.S.) in the ING network that you can use for free. You can also use your ING Mastercard debit card over the phone and at stores, etc.

You can link a few different "real-life" banks/accounts to your ING accounts, and transfer money online anytime. There is a short waiting period while the transaction is verified to go through.

If you ever have a problem or a question, there is an ING Direct help line you can call and talk to a live customer service representative.

I think the website is pretty clear in its instructions and information. They are on the "up-and-up;" it isn't a scam or a fraud.
I like them and think they are a good bank, but they aren't the only option available for good rates.

http://home.ingdirect.com/

ING direct is where I have my savings and checking accounts. They offer great rates because they dont have the overhead of bank branches everything is done online.

However the one draw back from having a checking account through them is they dont issue you checks, everything is done online. So if you get a check to deposit you will need to mail it in.

No hidden fees, higher rates are simply because their model allows them to pay higher rates because they lack physical infrastructure. With the ING Orange Savings account, you must link the account to your existing checking account to transfer money in and out. You cannot access your savings account directly. This reduces ING's costs and allows them to pass on higher rates to you.

Also check out HSBC's online savings account which is paying an even higher rate right now. (5.05% APR)

I am not that familiar with ING's checking account options. With those, you should be aware of ATM fees since ING doesn't have a significant branch network.

I have 2 ING Direct accounts, one for savings and a RSP account. I find that they offer a little higher interest rate because they are not set up like traditional banks. They have very few branches if any. There are no branches where I live so I do all my banking with them online. I find the money I invest does grow at a good rate (nothing fabulous). I find the staff helpful with questions. The only hidden term I have found is if you cash out your RSP early, they will be a fee you'll have to pay. For just a savings account there is no hidden fees to sign up or move your money back and forth whenever you need to.

No catch.

I have had a savings account there for over 3 years now.

The interest rate is very good and there website is easy to use.

I bought some mutual funds there about a month. Those are in the take right now but everything is after last week.

Ing Direct Branch Locations

I was wondering the same question myself today

This may be feasible