ING offers checking: "Electric Orange" account

[free4now]

ING just sent me a letter offering their new "Electric Orange" checking account. It earns 3% interest, and as far as I can tell has no maintainance fees, minimum balance, or direct deposit requirement.

They say it is online only, and can be opened by logging in and going to "Open Account".

Anyone tried this out? The one limitation that bothers me is that they don't seem to have much free local ATM access, and the interest payout can change at any time.

 

[d]

no maintainance fees, minimum balance, or direct deposit requirement

... and no (paper) checks either. no checks seems like a major disadvantage for a checking account

 

[cute fuzzy bunny]

Unless you're doing electronic payments. I write about 3 actual checks per year and I could easily go to the bill payer and have them send the electronic payment as a check through the mail.

Best deal might be looking to see if your brokerage offers a checking account sitting on top of your brokerage sweep/money market account.

I've got mine with vanguard, no fees or charges if you're a flagship level customer (some small fees at voyager level), sweeps money in and out of my prime money market account...paying north of 5% right now.

 

[Gone4Good]

Unless you're doing electronic payments. I write about 3 actual checks per year and I could easily go to the bill payer and have them send the electronic payment as a check through the mail.

Best deal might be looking to see if your brokerage offers a checking account sitting on top of your brokerage sweep/money market account.

I've got mine with vanguard, no fees or charges if you're a flagship level customer (some small fees at voyager level), sweeps money in and out of my prime money market account...paying north of 5% right now.

I'm leery of sending out checks with the account number of the account that holds almost my entire net worth. I've never once had a problem with my normal checking account, but given the amount of $ stashed in my vanguard account, it seems like a number I should guard closely.

Thoughts?

 

[d]

Unless you're doing electronic payments

i'm still writing about a half-dozen checks per month ... so for me the absence of checks is a major disadvantage for such a "checking" account.

 

[terminator]

d,

When I was looking into it I read ING's web site and they say that if you need a paper check you just enter the info into their system and they'll mail it to your choice of the payee's address or your address.

 

[maddythebeagle]

Presidential is offering over 4.5% checking but it requires DD....and pays that rate up to 25k...

http://www.presidential.com/

 

[cute fuzzy bunny]

I'm leery of sending out checks with the account number of the account that holds almost my entire net worth. I've never once had a problem with my normal checking account, but given the amount of $ stashed in my vanguard account, it seems like a number I should guard closely.

Thoughts?

Doesnt work that way. You have a checking acct number (aba routing, yada yada) thats different from your money market, brokerage or investment accounts. Its a "shim" account but its separate. Withdrawals, deposits and check demands are made against the "checking account", which is then applied to your brokerage sweep account, which then sweeps into or out of the money market account.

 

[d]

if you need a paper check you just enter the info into their system and they'll mail it to your choice of the payee's address or your address

... yes, but that will still not handle all situations ... and adds a brand new dimension to the "check's in the mail". how do i attach the non-existing check to my 1040? doesn't anyone else find a "checking" account without checks a bit less that 100% satisfactory?

if you're looking for interest, as Maddy has noted, Presidential offers (and has for quite some time) an attractive option; and CFB has noted yet another attractive option.

 

[cute fuzzy bunny]

Doesnt the IRS take payments as EFT's if you provide your routing/account number? I know they deposit refunds that way, its how I get mine every year.

 

[d]

i write 'em a check every year (actually 5 a year (1+quarterly est.)) .... don't know if they'll do etf for payments (don't think they do), but in any case i'd rather not give them that access on the out-side.

 

[terminator]

... yes, but that will still not handle all situations ... and adds a brand new dimension to the "check's in the mail". how do i attach the non-existing check to my 1040? doesn't anyone else find a "checking" account without checks a bit less that 100% satisfactory?

Well, I looked into it and didn't think it met my needs either, but you could have the check mailed to you and then attach it to your 1040. Granted you would need to plan ahead a few days to allow for mailing time. But it definitely has disadvantages in my mind.

 

[cute fuzzy bunny]

And voila...

http://www.irs.gov/efile/article/0,,id=97400,00.html

Epay taxes for individuals and businesses. By credit card, bank account, etc, online, by phone or via tax preparer.

Looks like it might be an easy way to automatically pay those pesky quarterly estimated taxes as well.

 

[pfpelican]

I use EFTPS for my quarterly estimated payments. Easy, peasey.

 

[Nords]

i write 'em a check every year (actually 5 a year (1+quarterly est.)) .... don't know if they'll do etf for payments (don't think they do), but in any case i'd rather not give them that access on the out-side.

I think there are plenty of checking-account choices for people like you who choose to stick with paper.

ING's higher interest rate is sharing the profits of doing away with paper. I hardly ever write a check anymore, despite having given dozens of businesses & govt agencies that access on the outside, and I don't mind not being able to put pen to paper.

Heck, these days it's easier to send an e-mail with a PayPal link.

 

[d]

And voila...

... seek and ye shall find. but: old dogs, new tricks? (it appears that e-pay requires e-file.)

 

[free4now]

I'm leery of sending out checks with the account number of the account that holds almost my entire net worth.

That's my feeling too... I don't want to end up like this guy:

http://www.boingboing.net/2007/01/24/memoir_of_a_kidnap_v.html

who was kidnapped when the bad guys learned he had $110k available to withdraw from his ATM.

Especially when I travel internationally, it's nice to know that my main stash is in an account inaccessible with the ATM card I'm carrying.