Every so often I write a post about money or personal finance. You might think I would write more on this topic since money is often on my mind from day to day. Some of the blogs that I read fairly often are devoted entirely to how to live frugally, get out of debt, and save money. I find the subject to be fascinating as well as very useful for the average person.
In my search for how to improve my own finances, I’ve been interested in finding a simple and safe way to save some of my earnings and build up an emergency fund. The most obvious way to do this is to begin putting some money into a savings account. Regular bank savings accounts have been paying pathetic interest rates, though. They’ve begun to rise a bit over the last year or two with the rest of interest rates, but they still have a hard time competing with online savings accounts.
ING Orange Savings is probably the most popular online savings account today. This is for good reason. It offers a high interest rate yield, currently 4.5%, and a simple, easy to use interface. ING also has a quick sign up process that’s a breeze to go through in just minutes and even a very nice incentive program to encourage you to open an account.
I opened an Orange Savings account online recently and I have to say that all of the above were confirmed. The process went smoothly, the interface was intuitive, and the whole thing was completed in a very short time. The process was virtually painless. If you’re like me, finances can be a very painful thing so this was refreshing.
There are a couple of things to be aware of with an Orange Savings account, however. You won’t have immediate access to the money. There is no debit card or check writing available on this account. It is strictly a savings account in the most basic form.
When you sign up for the account, you link it with your own regular bank checking account. This allows you to move money back and forth with just a few clicks. It really is that simple, but be forewarned that it can take up to five business days to move your money from checking to Orange Savings and vice versa. In my experience, the money has been available in about 2-3 business days.
I know some of you will protest that if this is to be used for an emergency fund, then the money should be instantly available. I understand your concerns. I’m going to stir up a little controversy by saying that you should keep a credit card available for those emergencies that require immediate spending. Then, simply transfer the money from your Orange Savings account to your checking and pay off the balance before the end of the month.
So, why do it this way? There are a couple of reasons. Having easy access to your emergency fund can sometimes make it too easy for you to spend that money. If you have a debit card in your wallet at all times that can tap into that money, you may be tempted to use it. For many of us those temptations are sometimes hard to overcome. Another important reason is that credit cards give you an extra layer of protection as a consumer that cash never has provided. If you’re dipping into your emergency fund, you definitely can’t afford to be ripped off.
Perhaps the coolest thing about the Orange Savings account is the incentive offered to open a new account. If you open an account with at least a $250 deposit, ING will deposit an extra $25 in your account right off the bat. Pretty good deal, huh? If you start with $250, that’s like making 10% interest immediately. You will need a referral from another member, though.
All in all, Orange Savings is a great deal with a very attractive incentive. You won’t be able to get the bonus by going straight to their page, though. If you’re interested in opening an Orange Savings account and getting the $25 for opening an account, contact me and I’ll send you a referral link. Full disclosure: I will get $10 if you sign up from the email I send you. If this bothers you, don’t do it, but I still highly recommend ING Orange Savings.
ING DIRECT – High Yield Savings with 4.50% annual percentage yield!
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