No, this post is not about saving money while shopping online (sorry to disappoint). It’s about trusting online banks to store all your hard earned cash in a location you can’t even touch. This is a tough pill to swallow for some of us. I myself was a late bloomer when it came to online banking for this exact reason. So I did some research and was amazed at what I found. When comparing the Annual Percentage Yield (APYs) of my local bank to that of ING DIRECT (one of the more competitive online banks), there was a difference of 2.5%. The savings account I was using at my local bank had a 1.9% APY, and the Orange Savings Account offered by ING was a 4.4% APY (now 3.4% due to the federal funds cut). What makes this possible is that online banks don’t have the overhead expenses of a typical brick and mortar bank, so they are able to pass those savings on to their customers. So with a 4.4% APY and being FDIC insured up to $100,000, my decision was easy. I moved my savings into an ING Orange Savings Account and have never looked back!

Here are the reasons I was drawn to ING…

• Consistently competitive APYs
• No minimum balance, bank fees, or hidden charges
• Great website interface (extremely user-friendly)
• Customer service 24/7, 365 days a year (phone and internet)
• Automatic Savings Plan for allotments
• Direct link to your checking account
• Ability to check interest earned daily (great motivation)

Don’t forget to take into consideration what the purpose of the account will be. For me, I just needed a place where I had 24 hour access, to keep my emergency funds. The ING Orange Savings Account serves this purpose well. If you don’t need quick access to your money, you may consider other options like certificates of deposit (CDs) or a money market account where you can receive a higher return on your money.

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