First off, let me make it perfectly clear that this is not a paid advertisement. GetPreQualified.com asked me to write a company profile on ING Direct USA Bank, and it so happens that I am a longtime customer of said bank, having had nothing but positive experiences in my years with them. What follows is a company profile of sorts, though it’s also something of a testimonial. I can’t help it; I love these guys.
The bank was opened about a decade ago when Dutch financial-services conglomerate ING saw an opportunity for itself and for customers of American account holders. Inspired by the innovative business models of companies like IKEA and Southwest Airlines, ING’s reasoning was as follows: If they could reduce their overhead by completely eliminating the need for branch offices, they could likely turn a nice profit and cut their patrons a better interest rate at the same time. So they set out on their mission, creating a phone-, mail-, and Internet-only bank. Sending out $25 checks to anyone brave enough to try their wares, ING quickly amassed a sizable customer base and established itself as the 28th largest bank in the United States.
Now boasting well over five-million account holders, ING is able to save even more money by keeping its account options minimal: One type of savings, one type of checking account, CDs, straightforward mortgages, and a few mutual funds. Beyond being financially beneficial, this simplicity results in an undeniably refreshing experience for the customer. Cutting through the nonsense and offering only the best accounts? I don’t know about you, but I’ll take it. In 2007, ING was offering savings accounts with 4.5% interest. (Recent rate cuts by the Fed have forced the bank to knock that rate back under 3.5% -- still a heck of a lot better than the 0.25% offered by others.)
The company’s easygoing manifesto is as unique as its approach, and CEO Arkadi Kuhlmann actually has had his share of public rants against what he terms “the opium of consumerism.” In 2005, he staged a protest (which also doubled as a PR stunt if we’re being completely honest here) by holding a press conference with Senators Ted Kennedy and Russ Feingold. The purpose? To decry a proposed bankruptcy law the rest of the financial sector was giddy about -- one that would make it easier for creditors to go after people who were having a hard time paying the bills.
I initially opened a savings account with ING, reasoning that even a few hundred dollars were better off accruing some interest than none at all. Once I had a little more money saved up, I opened a CD with the bank, eventually moving that money over to a no-fee mutual fund that has served me surprisingly well. The only surprises I’ve had in my years as an ING customer have been good surprises: Unannounced rate increases, tiny morsels of bonus money unexpectedly showing up once in awhile, and more. I’ve never had to pay any fees on any of my accounts, and I don’t even worry about legalese with them anymore. In an era that will inevitably go down in history as “the fine-print years,” it’s a genuine pleasure to do business with this bank.
Josh Michaels is a freelance writer who survives on very little income and carefully considered financial decisions. This combination has allowed him to have fun, travel the world, and start a retirement account – all without the pleasure of holding a full-time job. He can be reached at: joshmichaelsmoney@hotmail.com
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