I’ve received about $40 in referral fees from ING Direct (use my referral orange code and both of us receive a bonus $13 when your account balance exceeds $100). That’s cool, free money is always good and I have no trouble (money or no) recommending ING Direct to those trying to save, here’s why.
- There are no fees – Yes, perhaps the most important reason to use them is that they charge you NOTHING. So if you save only a little bit of cash each payday your savings won’t be eroded by the usual list of fees charged by the big banks.
- They pay relatively high interest (currently 3% but better than the big banks). There are online or virtual banks that pay slightly higher interest rates, but they are not as user-friendly as ING and are not recommended for the less techno-savvy.
- Their online banking interface is user friendly, intuitive and allows you to push/pull money into other (less user friendly) high-interest accounts with ease, even for the less computer savvy.
- They unlimited accounts within your main account to sub-divide your money, and each account can be “nicknamed” so it’s purpose is clear.
- Automated savings plan – have them withdraw a specified amount from your main account at specific intervals (bi-weekly, weekly, monthly or daily), make this coincide with your payday and you won’t even notice the money disappearing from your main account.
Most importantly you can use the online banking system to increase, decrease or cancel the automated savings plan at any time (with a few clicks of the mouse). I usually contribute more mid-month than I do at the end of the month simply due to the bills I pay, but your mileage may vary.
You will also receive a bank card for this account, although if you are serious about saving I recommend that you cut it up. It’s important not to think of your savings as money waiting to be spent, and accessing it should be just difficult enough that you don’t explore that option each time you see something shiny.
The money takes time to build, for example $25 saved every paycheque will add up to $600 in one year, hardly enough to retire on but $600 more than you would have saved without it, and at the cost of $25 every two weeks it is hardly lifestyle changing.
More later….
Never ceases to amaze me that people are still using the chartered banks for their savings accounts. Not only are the rates lower than those offered by the alternatives (like ING, PC Financial, Canadian Tire) but the chartered banks play reprehensible games …
For example, Scotiabank introduced their ‘high rate’ savings account in the 1990s … ‘Gain Plan’. Since then, they’ve reduced rates on that ‘high rate plan’ to 0.025% on deposit balances under $5,000. Why? Because 10(?) years ago they introduced their ‘new’ high rate ‘Money Master’ account which paid competitive rates, but which has since dropped to 1.5% for deposits up to $5,000. Why? Because – wait for it – they’ve recently introduced their ‘real’ high rate savings account, ‘Power Savings Account’, which pays 3.0% … provided you’re willing to leave at least $5,000 on deposit.
With PC Financial and Canadian Tire currently paying $3.05%, ING offering 2.70% and all with no service fees, why would anyone continue to deal with the chartered banks and their lousy rates and insidious service fees?
You know, being that I’m in the most expensive kind of educational program in university, for me, $25 twice a month is actually a bit rich for my blood. When I paid my first semester tuition, the clerk commented that us law guys pay more in one semester than most students pay for a couple of years. I’m so skint, I rely on free internet in the law library. I look back fondly on my wealthy days as an entry level guy at the Mighty P.
Of course, instead of having $1,800 in three years, I’ll have a degree that will make my distinct lack of interpersonal skills no barrier to employment for the rest of my life. I regard this as an investment strategy of sorts.
I love ING Have been with them for 7 years now and have no worries what so ever!.
like the ING guy (Frederick) say’s watch your money grow! and Save your money after all its your money!
Dad: I hate the big banks. Hate them, neener neener nah nah… etc etc.
Greg: Ok, ok, ok…we get it. You’re going to be a lawyer, yes, yes, yes. Shouldn’t you be in a library somewhere studying instead of lurking around the internet bragging?
-GRIN-
In all seriousness, you are studying the possibility of using the “believed victim to be the reanimated body of deceased person intent on consuming his flesh” defence for me, right?
Traci: That’s what I’m saying!