ING Direct Accounts

...am), so off to the ING Direct website I went.



....ING history?:

Previous opinions have mentioned the Dutch background behind the company; I took some time to read the background information on the website, although I won't bore you with the full bumpf (you can read that for yourself). In short, although ING Direct only launched in the UK in May 2003, they have large sites across Europe and the world, ...
...However, I could've rung the ING Direct customer Services helpline, or requested a postal application pack to fill in and return. I like instant results, so went with the online option!

Initially, I started the setup and cancelled, as the first thing ING asked me for was details of my current account to set up a Direct Debit. Not wanting a regular savings amount, or to have to give details of my current account straight away, I panicked ... more

My background (and love of clicky banking):

I'm a big advocate of Internet banking. Having spent three years working for one of the major UK banks in their back end Internet banking IT area, I've seen the technology that this stuff runs on, the security that's wrapped around it all and I generally have plenty of confidence in the internet banking revolution.

Thus, a new Internet bank, with a nice and toasty interest rate, no time limit on withdrawals, but with the only drawback that there is no branch network. Sounded perfect to me (lazy internet surfing thing that I am), so off to the ING Direct website I went.

....ING history?:

Previous opinions have mentioned the Dutch background behind the company; I took some time to read the background information on the website, although I won't bore you with the full bumpf (you can read that for yourself). In short, although ING Direct only launched in the UK in May 2003, they have large sites across Europe and the world, currently operating in 8 countries from the USA and Canada to Australia. ING, for you geeky types out there, stands for the International Netherlands Group. Somehow "I N G" (for those of you who say the letters) or "ee-n-gh" (for those like me who pronounce it as a word) seems a simpler term to use!

With no physical branch offices throughout the UK, but the promise of 24/7 Internet and telephone banking (humans on the line Monday-Friday 7am-11pm and Saturday-Sunday 9am-9pm, but with an interactive telephone banking system outside of those hours), I was sold. At the end of the day, my savings are exactly that - savings, and thus I don't need the flexibility to manage them as much as I do with my current account. Certainly, for a higher rate of interest I'm willing to sacrifice a few minor elements of the banking process.

....ING setup:

I set my account up online, although you do have the option to open an account up by telephone or by post. I'm normally one to jump straight in without reading instructions, and I opted to open mine online. However, I could've rung the ING Direct customer Services helpline, or requested a postal application pack to fill in and return. I like instant results, so went with the online option!

Initially, I started the setup and cancelled, as the first thing ING asked me for was details of my current account to set up a Direct Debit. Not wanting a regular savings amount, or to have to give details of my current account straight away, I panicked and cancelled.

I should’ve read the instructions first - part of the ING Direct verification procedure is to have a 'validated' UK bank account and the control over the Direct Debit is entirely up to you. I chose not to make a regular payment to my account, instead preferring to move my money if and when I want to. I notice that the site now has a "why do you need these details?" question / answer section on the setup for more information.

So, once I'd calmed down, I went back with a few details and restarted my setup procedure. Now, ING Direct allows you to save a pending application should you not have all the necessary documentation or online time whilst setting your account up.

The setup itself was - from distant memory - very straightforward and well-explained. I'm sure that it took a maximum of 15 minutes or so, although the newly-introduced ability to save an application should help those with short amounts of time online. I remember entering the standard details, along with choosing a password, entering my bank details, and verifying some standard ING options before proceeding.

Once setup, I received a welcome pack, containing my Customer Number (this is important as it allows you to log into your account online. Without this number, you are effectively frozen out of you account until you go through the security procedures to allow ING to reissue it to you), and my PIN arrived a few days later. These are the two key items that allow me to log into my account, along with the password that I set up when opening my account.

....ING Security (to stop thievING...):

When logging into the Internet site, you are asked to provide your customer number (a unique number that only you have), your pin code (set up when opening an account) and your password. You can only enter your password once your customer number and pin code have been verified.

128-bit SSL security is used - this is industry standard for banking institutions - and for non-techies, basically wraps your login session up in lots of nice tight security so that it's highly difficult for any would-be thief to get their hands on your details.

....ING money management:

My favourite bit of the whole website - looking at what money I've got! In all seriousness, however, I highly advocate the option that ING offers to 'split' your money up. From within your main screen, you can split your money into different accounts for different savings - so, in my case I have a savings account to cover my car expenditure, one for my house deposit, and one for 'tat sales' - all the stuff I've sold on eBay and am putting towards a holiday/treat. You can have up to ten of these accounts, and I find them invaluable. So much so, that I've left a suggestion with my ex employers that they offer the same thing. I can think of nothing more useful than being able to split my current account up to cover my gas, electricity, student loan payments, etc and know exactly how much money I've got saved for each.

The 'View My Accounts' tab will let you look at all the accounts you have active, and within each account, you can check the transaction history, view pending transactions, as well as calculating your interest earned compared to a High Street Bank, and check back over the history of the interest rates that ING have offered. Within each "Account Activity" screen, there is a snapshot of interest earned so far during the year.

However, I find that the 'simplification' of the Account Activity screen has been taken a tad too far - for example the ins and outs merely read as "credit" and "withdrawal". I've often found that it would be useful to know if it was a transfer between ING accounts or current account, or who paid the money in - especially when you run a joint account or more than one person makes a payment to one ING Direct account.

....ING Customer Service:

I have had queries in the past with my account and have rung the telephone helpdesk and - shock - spoken to a real live person! Yes, ING Direct do employ humans (not just servers!) and they're based in Reading in a big ol' centre. Very nice people too, having solved my query in an instant, with minimal waiting times, minimal fuss, all the things we like where good customer service is concerned!

There is no email service, although you can write to ING Direct at a freepost snail-mail address. I haven't tested this out from a Customer Services point of view, so cannot comment, although when I have sent in a cheque it was dealt with promptly and was in my account within a suitable timescale (5 working days from posting).

Money IN(G) and out:

There are many ways to increase (or decrease) the funds in your ING Direct account(s):
- You can send cheques to ING Direct made payable to yourself through the snail-mail

- Direct Debit can be set up to request money from your current account...
... but it's quicker and easier to set up a Direct Payment from your bank account to your ING Direct account using the ING Sort code and account number. I use this method, and it takes about 3 working days to show up. A DD takes about 5 working days.

- You can switch money between ING accounts through the "transfer money" screen. This is a simple point-and-click procedure that allows you to choose which account you want to take the money from, and which account you want to move it to. You are asked to confirm your actions to ensure that you are happy moving the money, and to allow for corrections to mistakes, and each time a transfer / payment is made, you receive a confirmation which you can print for your records should you wish.

- Telephone money movement - internal ING and external accounts can be done by telephone too - either through the automated system, or by speaking to an advisor.

To get the cash back out again, you can:
- Request a payment to be made - a reverse of the Direct Debit, again with up to 5 days' wait.

In true paperless-banking style, ING do not issue cheques for withdrawn money, everything is moved electronically between accounts, hence why you need a Current Account to transfer funds to / from.

It's not the quickest to move money in and out, but then again with any bank-to-bank transfer there's always a minimum of three days for funds to clear.

Fund transfers between ING Direct accounts are cleared instantly, but you will need to be organised if you find that you need money on a certain date in your current account.

....ING Statements:

If you've been with ING for more than a quarter, you will have a quarterly statement (or a selection of!) to browse through. If you have more than one account, they are all encompassed within the one statement. This opens up in a new window, allowing you to print it off if you prefer a paper copy, and details the account ins and outs. This is a slight improvement on the Account Activity screen, insofar that transfers between ING Accounts show up with the account number tagged to it, but external payments in still show as credits.

At the top of the statement is an overview of the total sum of money saved with ING Direct, and the total interest earned on that money.

I have online statements made available to me, but it is possible to request paper statements to be sent out. These are subsequently available online as well so that your financial overview is always at your mouse pointer.

Six months down the line... am I still likING it?:

ING (oooh, sorry!) a word, yes. It's probably the most simplistic Internet banking system I've used over time. It knocks the socks off of other High Street Building Societies' Internet banking (and some High Street banks, too). The colour scheme is nice and simple, the site is well laid out and easy to read, and confirmations and actions are clear to the user. I would like to see more details of my credits and debits, but for the time being as long as I can see my money there, know how much it's earning and switch it between accounts, I'm a happy person.

I’ve had no problems in my six months’ saving time with ING, and as far as I’m concerned, it’s a happy relationship which I’ll continue for a long time yet.

Maybe I should suggest to ING that they develop a current account to match their savings... if that's the case, I'll certainly be switching mine.

What are you waitING for??:

Get on over to the website, have a look through the FAQs, and get going!

EDIT:
As requested, I managed to forget to add in the current Interest rates. For your information, they are as follows (as at 31st March 2004):
AER = 4.5%
Gross PA = 4.41%
NET PA = 3.53%

AER stands for annual equivalent rate and illustrates the interest rate if it was paid and compounded each year.

Gross per annum is the annualised rate before deduction of tax at standard rate.

Net per annum is the annualised rate after deduction of tax at standard rate

EDIT 2:
You must be 18 years or older to open a bank account with ING Direct. 

...less