Virtual Bank Vs. ING Orange Online Savings Accounts

Click here if you are looking for $25 ING Orange Savings Account Bonus Referral Links (I keep them constantly updated).

Click here if you are looking for ING Electric Orange Checking Account Referrals

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I was reluctant from the beginning to save up some money in an account to help with unexpected expenses. It was difficult for me to save some money at a local bank and earn less than 2% interest while most of my debt has an interest rate above 5%. The biggest thing that helped to push me to finally establish a rainy day fund was the availability of online savings accounts. With the ones I have, I am making 4.5% in interest. That’s much better than what my local bank can do.

There are a few choices out there. The ones I hear about most often are ING Direct and Emigrant Direct. The first one I went with was actually Virtual Bank (none of the three links above are affiliate links). Why? They had a nice bonus of $20 with a referral and I only had to deposit $100. For someone reluctant to start a savings account, it wasn’t too bad to part with $100 and immediately have it turn into $120.

A little while later, I was ready to place a good chunk into my savings and I decided to open an ING Direct savings account. Their minimum amount to deposit for a referral bonus of $25 is $250. I liked that my $250 immediately turned into $275.

Since I am a customer of both banks and have been for a while now, I thought I would write up a little comparison of the two. Of course, this table doesn’t include everything since the list could go on and on. I included things that were important to me.

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The first thing is the interest rate. Virtual Bank and ING Orange Savings are tied at 4.5% at the moment. This rate is variable.

Next up is the bonuses available. A bonus gives an automatic boost to the interest rate and it was a big reason I decided to take the plunge into online savings. [EDIT] These bonuses are only available to new customers.

NOTE: I do have bonus links to give out for both of these accounts. For Virtual Bank, all you have to do is contact me and indicate what bank you are interested in. For ING Direct, there are some self-serve referral links at the bottom of this post. Please note that we both will receive a $20 bonus for Virtual Bank and for ING Orange Savings you will receive $25 and I will receive $10 (or whoever has the referral link since I’ve been posting some for other people lately). If you are not sure about using the link, please refrain from asking for one. These are one time use only links and the referral is lost forever if you do not use it.

The next section is all about security…a biggie for me. I have a hard time with the ING Orange Savings security. The other day, I entered what I thought was my customer number and I kept trying to answer someone else’s security questions. The system never locked me out after 10 tries. Virtual Bank, on the other hand, has a ‘three times you’re out’ clause. If you enter your password incorrectly three times, your account is locked and you have to call customer service to get back in. I know, because I had a hard time remembering my password and I have been locked out twice LOL.

A feature that I would love to try soon is the automatic savings. You can designate a frequency (which varies by company) and have the funds automatically removed from one account to another. If I did this, I would probably do it monthly and both companies can do that. ING Orange Savings does have the option of having funds automatically transferred on the 15th and the last day of the month. That is handy for those that get paid twice a month.

For adding accounts to link to your online account, you can do it electronically with ING Orange Savings. With Virtual Bank you have to do it by mail. I find that a little odd that you can’t do it electronically with Virtual Bank.

The time to transfer funds for both ING Orange Savings and Virtual Bank Savings are basically identical. I’ve had to withdraw funds from both, and in both cases it took two business days to have the funds placed in my designated account. This is one pitfall from having a savings account online versus at a local bank. At a local bank, you can drive there and have the funds you need immediately (in most cases).

Both banks are also FDIC insured for their savings accounts. If they weren’t, I wouldn’t have my money in either of them.

Lastly, I included some telephone hours. ING Direct has more coverage with available telephone hours, although I couldn’t find on the website whether the times given are in Eastern time or another time.

CONCLUSION

If I had to close one of the accounts today, it would be the ING Orange Savings account (I do plan on keeping it because I don’t like to have all of my eggs in one basket). A big part of that is the security features. I just feel my account is less susceptible to hacking at Virtual Bank because of the ‘three times your out’ feature. But, there is something else I like about Virtual Bank that you can’t put in a chart. It is the overall feeling that the company gives me.

Let me explain…

When I signed up for my Virtual Bank account, I did it all online. It was the same for ING Orange Savings. After signing up for ING, I received a welcome email. A few days after signing up for a Virtual Bank Savings account, I received a letter in the mail welcoming me. The biggest thing for me was that the letter was hand-signed (no stamp) by a personal banker. That little personal touch almost made me forget that I was dealing with a national online bank.

In the end, if you choose to go with Virtual Bank Savings or ING Orange Savings, you are dealing with an FDIC insured bank that is working to keep your account secure and give you a great interest rate. If you need a place to hold an emergency fund, they both are good for that purpose.

$25 ING Orange Savings Account Bonus Referral Links

PLEASE do not post referral links in the comments! I have a cycle I am going through and as soon as I need more links I will post saying that I need more and you can try to be in the next cycle. Thanks.

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Look into investing in savings accounts and try to avoid putting more money on a card Also don’t send off for all the credit card offers that are in your mail box. Always keep credit spending down!
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Posted by Tricia on May 15, 2007 at 11:08 PM in Saving Money |
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  1. MVP responded:
    Posted: May 15th, 2007 at 11:50 pm

    I can’t speak for Virtual Bank, but I can say I LOVE my ING account - did i really just say that about a bank account?! Anyway, I’ve had my account a couple of years now, and I’ve had few problems. My husband would agree with you that the strange security features can sometimes be a pain, but once you’re used to them, it’s pretty simple. Anyway, I’ve been very pleased with their level of customer service, frequent emails when a deposit or withdrawal are made or the interest rate increases, and the automatic deposit/withdrawal features. It’s a keeper in my opinion.

  2. Richard responded:
    Posted: May 16th, 2007 at 2:55 am

    After reading what went down here (especially comment #27):

    http://www.consumerismcommentary.com/2007/05/10/ing-direct-closed-customers-account-due-to-bad-credit/

    ING is in my black book.

    Regardless, your money is probably better off in a higher-yield account anyway, like FNBO (6.0%), UFB Direct (5.30%), or GMAC (5.30%). I’ve only personally dealt with GMAC, and while there’s no bonus (that I know of) right now, and they have a $500 min to avoid a monthly fee, they don’t do a hard credit pull, and the security seems pretty tight.

  3. Tyler responded:
    Posted: May 16th, 2007 at 7:36 am

    HSBC Direct is my go to online bank! Good service, security, and rates (5.05%). Also, if you’re having a hard time remembering passwords, download KeePass. It’s a free software that stores ANY kind of password in a file on your computer that is encrypted very nicely. You only need one password to remember. It’s very secure and easy to use. http://www.keepass.info

  4. Kristina responded:
    Posted: May 16th, 2007 at 8:31 am

    HSBC is my online savings bank! To compare… their rate is well over 5%, security is awesome (password plus virtual keypad, lock out after 2 tries), it’s connected to my HSBC checking and the funds when transfered become available immediately.

  5. danielle responded:
    Posted: May 16th, 2007 at 11:29 am

    All that savings vs. debt stuff confuses me, so I am afraid I can’t be of much help to you there. I do know that when I personally was in debt, I didn’t worry about savings until I paid it off. It helped me a lot. I would have rather had the peace of mind of being debt free than the extra nickels and dimes from interest. Our current savings only yields about 75 cents per thousand dollars. Yay, a can of soda at a gas station!!!
    We’ll look into different types of savings in a few weeks, tho, after the baby is born.
    Wamu seems to have a lot of them, and the branch managers seem really eager to help. I think that’s good, but at the same time wonder what’s in it for them????

    On another note- did your debt total go down again? I noticed the numbers are different, but don’t remember what they were before?
    ~Danielle~

  6. Amy Bass responded:
    Posted: May 16th, 2007 at 11:59 am

    I wanted to suggest Zions Bank. I have an online internet money market account with them with check writing capabilities and they give me 5.32%. Just something to look into.
    I am also blogging to get out of debt! I think it is a great idea. You can see my blog here- http://achieve-financial-independence.blogspot.com/

  7. Katie B. responded:
    Posted: May 16th, 2007 at 12:11 pm

    I am a huge fan of HSBC Direct. The interest rate has been 5.00%+ since I opened my account six months ago, but what I truly find most appealing is the security features. When you first open an account they send you two letters over the period of a week, one with your customer ID and one with your password. Once you have received both letters you have to call the bank and establish a passcode that uses a virtual keyboard to prevent someone from stealing your password via keystrokes. So every time I log in I have to first use my customer ID number, then my HSBC assigned password, and then finally my virtual keyboard passcode. In all honesty, it can be a bit of a hassle, but if that’s what it takes to increase security in online banking it’s worth it to me.

    Oh and one thing- I opted out of getting an ATM card for this account and it’s a decision I’m so glad I made. The temptation is gone!

  8. San Francisco Money Maven responded:
    Posted: May 16th, 2007 at 2:18 pm

    I also like ING Direct, but it’s the only online bank I have experience with. I’ve found the online security to be fine (maybe too fine!). I got locked out the first two times I tried to log in and had to request new pin numbers. Maybe the lock-out feature only applies to newly opened, not yet accessed accounts. I bet they would add a lock-out feature if you emailed them.

    They have a weird security feature that requires you to select your pin code from a virtual 10-key pad that has switching letters assigned. I found this confusing, which is how I got locked out both times. Once I finally got online (3 months after I opened the account), I got the hang of the site and I like it just fine now.

    But hearing about the better interest rates makes me want to switch to another online bank.

  9. Karthik responded:
    Posted: May 16th, 2007 at 2:31 pm

    If you are in the Austin / San Antonio (TX) region (or if don’t mind traveling there once), Capital One’s new “high interest” checking account is a good option. This has a 5% APY for 1 year. I think it will be 3% APY after 1 year. But the checking account has no minimum balance, no ATM fees even when using other banks ATMs, no monthly service fee. $50 initial minimum deposit. And it is a *checking* account!! Pretty good, right?

    http://www.capitalone.com/bank/checking/high_interest_checking.php

    From their FAQ:
    http://www.capitalone.com/bank/checking/high_interest_checking_faq.php

    5. Is this checking account available everywhere?
    There is no limitation on who can get this checking account, however, closing requires visiting a branch in either Austin or San Antonio, TX metropolitan areas only. At closing in a branch, you will be required to present a valid photo identification (such as a driver’s license), make the initial $50 opening deposit, and sign your signature cards. You will also receive a welcome kit which includes an initial set of checks to use. View branches located in the Austin and San Antonio, TX metropolitan areas.

  10. Deby responded:
    Posted: May 16th, 2007 at 3:00 pm

    Thanks for the comparison, Tricia. I’ve been planning on opening up an online savings account next month now that we’re finally able to get a handle on our finances. I’ve been leaning towards ING, but I think I’ll be taking a look at some of the other ones mentioned here as well.

  11. Jason responded:
    Posted: May 16th, 2007 at 3:50 pm

    Since no has mentioned them yet, I have to give my props to Emigrant Direct. Very easy set-up and easy navigation on the website. Currently a 5.05% rate is offered.

  12. SavingDiva responded:
    Posted: May 17th, 2007 at 10:01 am

    I really enjoy your blog. I found it from a link on Amazon’s page (you reviewed a book for them).

    I’ve had online savings accounts for years (my favorite is HSBC). Recently, I opened up a Charles Schwab Investor Checking accounts. It gives you all of the options of a free checking account, but you earn over 4% interest (no minimum). I haven’t started using it yet, but I think it’s a nice option to look into.

  13. Jim responded:
    Posted: May 18th, 2007 at 12:36 am

    So why don’t you open a checking account at ING? Their new Electric Orange account lets you transfer immedately from an on-line savings account to the checking, and has a no fee ATM card that allows you to get cash out. There are two ATM locations in my little town in Idaho. Have moved most of my banking there.

  14. Money Smart Life » Personal Finance Week in Review - Expensive Haircut Edition responded:
    Posted: May 20th, 2007 at 4:55 pm

    [...] Blogging Away Debt compares Virtual Bank and ING Orange Online Savings Accounts. [...]

  15. Blogging Away Debt » Blog Archive » My Brand New Savings Account at Virtual Bank responded:
    Posted: May 31st, 2007 at 9:54 am

    [...] I have $20 Virtual Bank Savings bonus referral links if you are interested.   [...]

  16. Money Smart Life » Personal Finance Decision Guide - Roth IRA vs. Traditional IRA responded:
    Posted: June 4th, 2007 at 8:24 am

    [...] Banking-Virtual Bank Vs. ING Orange Online Savings Accounts [...]

  17. Shop Online. Get Paid. responded:
    Posted: June 28th, 2007 at 5:02 pm

    Saving at ING Direct through MyPowerMall not only earns you 4.50% APY. You also earn unlimited income by referring others to save at ING via their own MyPowerMall. This opportunity is totally free. So, there’s nothing to lose but everything to gain.

  18. SM responded:
    Posted: June 29th, 2007 at 12:42 pm

    Little things like sending signed letters is actually a turnoff for me. I love my ing accounts (I have savings and an IRA through them), and I love that the only time I’ve received something in the mail is when I opened the IRA. Sending paper welcome letters, that are personally signed, is, in my opinion, not the way money should be spent. It also means that they have a larger overhead and that means lower interest rates — or in your case, a lower signup bonus — for people saving with them.

  19. Credit Card Debt Update and Savings Update » Blogging Away Debt responded:
    Posted: July 2nd, 2007 at 10:25 pm

    [...] big thank you to everyone who opened up a savings account with ING Direct or Virtual Bank using my referral links. I like the referrals where we both get a bonus and you aren’t spending [...]

  20. jeanjeanie responded:
    Posted: July 3rd, 2007 at 4:17 pm

    I used one of your ING links to open an account this afternoon. Thank you so much for providing those. I think this is exactly the kind of account I’ve been looking for.

  21. My Financial Mistakes responded:
    Posted: July 7th, 2007 at 4:11 am

    You know, it’s always nice to have a rainy day fund. I have an ING account myself either via a referral from my friend. Hey, I could always use free money ($25)

  22. Betty responded:
    Posted: July 14th, 2007 at 12:55 am

    Does anyone know if Virtual Bank does a hard pull?

  23. Tricia responded:
    Posted: July 14th, 2007 at 1:02 am

    Hi Betty,

    Virtual Bank did not do a hard pull for me, at least not through TransUnion. Neither did ING. I’m not sure about the other two agencies.

  24. Update on the ING Direct Savings Bonus Referral Links That I Have » Blogging Away Debt responded:
    Posted: July 18th, 2007 at 12:03 pm

    [...] did a little comparison between the two online savings banks that I use back in May, Virtual Bank vs. ING Orange Online Savings Accounts. At the very bottom of that post are the $25 bonus referral [...]

  25. Thanks Tricia! « I’ve Paid For This Twice Already… responded:
    Posted: July 20th, 2007 at 6:50 pm

    [...] an ING online savings account with a minimum deposit of $250 or more, you can pick up a referral here that will give you a $25 bonus for opening the account (I get a $10 bonus deposited to one of my [...]

  26. Saved Again By Our Savings Account » Blogging Away Debt responded:
    Posted: July 22nd, 2007 at 12:07 am

    [...] how things have changed. I’ll just initiate a balance transfer from one of our savings accounts and pay it back as soon as we can, probably when some more money comes in. Slowly but surely, we [...]

  27. Thanks to the person who used one of my ING Direct savings referrals! « I’ve Paid For This Twice Already… responded:
    Posted: July 26th, 2007 at 8:49 pm

    [...] Published July 26th, 2007 savings Tricia at Blogging Away Debt has been hosting some of my ING $25 referrals since she used up all of her own. I got an email just now that someone used another one of my [...]

  28. All my ING Direct links on Blogging Away Debt were used! Thanks! « I’ve Paid For This Twice Already… responded:
    Posted: July 27th, 2007 at 10:51 pm

    [...] were used! Thanks! Published July 27th, 2007 link love , savings Today someone used link #3 to open an ING Direct savings account and get a $25 bonus with an initial deposit of $250. So my son’s college account got a $10 bonus. [...]

  29. Ajay responded:
    Posted: July 29th, 2007 at 9:39 pm

    I used one of the ING referrals from Deby to open a savings a/c.

    Thanks!

  30. Mark responded:
    Posted: July 30th, 2007 at 2:33 pm

    I just used the 3rd refferal from Deby. Thanks.

  31. Tricia responded:
    Posted: July 30th, 2007 at 2:46 pm

    Ajay and Mark - on behalf of Deby…Thanks! Also, thanks for noting that you used the links. I can them come in and mark them as used a little quicker.

  32. Shana responded:
    Posted: July 30th, 2007 at 5:23 pm

    I have some Ing referrals that I would be happy to have posted for others to use. Is it possible to still submit referral links?

    Thanks, and good luck with your debt paydown. I’m in the middle of my own right now, in addition to saving for a home downpayment, too.

  33. Never responded:
    Posted: July 31st, 2007 at 6:01 pm

    I used the last link to open an account. Thank you very much!

  34. I have more ING Direct Savings referrals at Blogging Away Debt! « I’ve Paid For This Twice Already… responded:
    Posted: August 4th, 2007 at 8:11 am

    [...] Blogging Away Debt! Published August 4th, 2007 savings Tricia has put up more of my ING Direct Savings Referrals at her blog, Blogging Away Debt. If you open a savings account through a referral link with an [...]

  35. One down, two to go « I’ve Paid For This Twice Already… responded:
    Posted: August 5th, 2007 at 11:18 am

    [...] still have two more referrals left up at Blogging Away Debt, so if you’re looking for a referral to earn $25 when opening an ING Direct Savings account with an initial deposit of $250 or m…, head on over and check it out. :)  One of my kids’ college accounts will get a $10 bonus [...]

  36. Debt Doesn't Have to Just Be a Part of Life » Blogging Away Debt responded:
    Posted: August 9th, 2007 at 8:04 pm

    [...] debt stories from others so I’m glad paidtwice sent me an article. BTW - I still have two ING $25 savings account referrals available from her. The $10 bonus that she gets when you use her referral is going towards her [...]

  37. ING Electric Orange Referral Links » Blogging Away Debt responded:
    Posted: August 26th, 2007 at 8:50 pm

    [...] been hosting ING Orange Savings Account referral links for a while. To start up an online savings account with ING using one of those referrals, you get a [...]

  38. A Thanks! To Tricia and a Guest Post for Brian | I've Paid For This Twice Already... responded:
    Posted: September 12th, 2007 at 4:11 pm

    [...] at Blogging Away Debt has been hosting ING Direct Savings Referral links for me (and a few other people in rotation)  ever since she ran out of her own to give away.   [...]

  39. Virtual Bank at 4.6% - ING Orange Savings at 4.2% (APY) » Blogging Away Debt responded:
    Posted: November 3rd, 2007 at 10:43 pm

    [...] in May, I wrote up a little comparison of the savings accounts at Virtual Bank and ING. At the time, their interest rates were tied. Not anymore. Virtual Bank [...]

  40. Graham responded:
    Posted: November 12th, 2007 at 1:08 am

    I’ve had my ING Orange Savings account for two years now and couldn’t be more pleased. The customer service is second to none, the website is well laid out and easy to use and best of all I haven’t incurred a single fee while I’ve banked with ING. Along side an Orange Savings account I also recommend getting Electric Orange. A feature I particularly like about Electric Orange is free online bill pay. When its time to pay my monthly bills I can transfer funds instantly from Orange to Electric Orange and pay everything from credit cards to utilities.

    The interest on Electric Orange varies from 3.25%-4.90% APY depending on balance while Orange does not employ a tiered interest rate and is currently at 4.20% APY.

    For those of you looking to get that $25 referral, shoot me an email at EDIT and I’ll be happy to send you one.

  41. Zach responded:
    Posted: January 7th, 2008 at 3:51 pm

    I love my ING Direct account. It doesn’t have the highest APY but you won’t get better customer service anywhere else. Also, their online interface is just easy and awesome.
    I also do still have many referral links left if anyone would like to contact me to receive a link (either for an orange savings account or the electric orange checking/savings account) to sign up for an account. You receive $25 for signing up with a min. of $250 or more. A nice little bonus for nothing! Just shoot me an e-mail @ EDIT and I’ll send the link right back to you!

  42. Trisha responded:
    Posted: January 10th, 2008 at 9:51 pm

    I just signed up for ING’s Orange savings account using a referral on Tuesday night. It was SO easy, quick, and the $25 bonus was in the account the very next morning.

    I have several referrals left that I can send out if you’re thinking you want to sign up and get the $25 bonus. You can sign for either the “Orange Savings” account or an “Electric Orange” account. Just send an email to EDIT if you’re interested and I’ll send you an email with a link to apply. If you sign up online, you won’t receive the bonus. You HAVE to sign up through the link in a referral email. And remember, you must sign up with a starting deposit of at least $250 to recieve the bonus.

    It’s totally worth it. Again, just email me at EDIT.

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