[OAC_Sparky]

crazikev,Aug 22 2005, 10:32 PM Wrote:as for the ING account, all you hear about are the pros, are there any cons to openning up an account with them, can you get at your money?
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Well, my experience with them so far ( it's been a few years now ) has been satisfactory.

Basically, this is how it's set up:

You send them (by mail) a voided cheque from your regular bank account. This becomes the account you will transfer money between (ie for me, CIBC) and ING.

Then you set up your account(s) at ING online.

For example, I have 6 separate "investment savings" accounts, you can name them whatever you want. One is a "Savings", one is "Property Tax". and the rest are for each of my 4 kids. (I even have them listed as "in trust" accounts so I don't have to pay taxes on their interest income).

To access money (either way, from CIBC>ING or ING>CIBC) you basically set up a transfer like you would in any other bank's online banking. When you sign on at ING's site, your CIBC account is listed, you choose that as your "from" account and choose whatever ING account you want it sent to. Or vice versa. It's really simple. You can also set up daily, weekly or monthly transfers, which is what I do for my taxes.

Now to answer your question, there are a few cons. You wouldn't want to use ING as your everyday "day to day" account, because there is a lag between transfers (after all, it IS an investment account).

When you transfer from CIBC>ING, it usually takes 3-5 days before a temporary hold comes off the funds while it clears (the delay is more because of CIBC, not ING). It's like you are writing yourself a cheque. BUT, ING still pays you the interest on the money during those 5 days. Until the hold comes off, it is frozen in the account you transferred it to (ie. I can't try to move that last amount between my savings and tax accounts).

When you transfer between ING>CIBC, it takes less time, usually a day or two, and (at least for me) there is no hold on the incoming funds.

You do get a banking card with ING, apparently some Canadian Tires have their bank machines, but I've personally never used them.

The only other con is that you have to deal with service over the phone. The few times I've called with questions they've been helpful (and speak English), but I've really not had any real problems to speak of so I can't vouch for how they are in a crisis. I try to keep my needs with them simple.

So, for long term stuff like savings (like for a yearly vacation), property taxes (I pay mine quarterly, why get no interest at all on the $3-4G that accumilates in the account?), and stuff like nest eggs for the kids' wedding/education/first car, I think it's the way to go. 2.4% annually is better than nothing, which is what you get at the normal bank. In my kid's accounts alone that means nearly $500 extra a year.