You may have heard of ING Direct, from their commercials about the company sounding like the end of a sentence to their ads featuring a big orange ball, ING Direct is one of the best online banks going these days. There are many reasons to sign up with everything from cash back bonuses to the convenience of using 35,000 nationwide ATM’s for free, the benefits are many, but one of the questions people keep asking me is “How does ING Direct work?” so here goes…

ING Direct is an online bank, with no physical locations. Unlike most banks where you can walk in and sign up for an account, ING Direct is done all online. What this does is saves them money on things like rent, electricity and property taxes and they can then pass it on to you with interest rates higher than your local bank, even on checking accounts.

You should also know that ING isn’t just checking and saving accounts. In fact ING offers a variety of banking products, their most common being savings accounts and checking accounts, but they also offer home loans and mortgages, online investing, IRA accounts (including Roth IRAs), and a suite of business checking and saving options as well. Essentially it’s one stop shopping for anything that has to do with money.

Ok, I got off on a little tangent there… back to how ING works. When most people ask me that question they are usually referring to checking and saving accounts so I’m going to focus on them for now, but perhaps I will get in to the mortgages, investing and business stuff in a later post if I have time.

When you sign up for a checking or saving account though ING you use your current bank like a pass through. Many of you have sent e-checks or made payments online, well transferring money to your ING account works very much like that.

Once you have signed up for an account ING will make two small deposits in your current bank account, something like 3 and 7 cents. They do this for verification so you can prove to them that the account is in fact yours. Once you verify your account you do a transfer from your current account to the ING account. The process usually takes a couple of business days, but is really no harder than making an online payment.

Once the money is in your account you can either have it gain interest in a savings account, or use your checking account like you normally would with checks and an ING direct debit card (through Mastercard). At the time that I am writing this ING is offering a $50 bonus if you sign up, make a deposit and use your debit card 3 times in the first 45 days. If you do these three steps they will transfer $50 to your account on the 50th day…how cool is that?

Anyway, ING direct is a very simple service to use and really works no differently than a regular bank account except for the physical interaction with the tellers. For most of us with jobs we know that “bankers hours” never let us get to the branches anyway and ING is open 24/7 for customer service. I just signed up today and I’m very happy to have my checking account earn interest for a change!

Click Here To Learn More About ING Direct

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1. How Do Checking Accounts Work? Opening a Checking Account
2. Best Bank Accounts for Students: Student Checking Accounts
3. How Do Savings Bonds Work? Savings Bonds Basics

How Do Checking Accounts Work? Opening a Checking Account

Checking accounts are a service which banks, credit unions, and other financial institutions offer individuals and businesses allowing them to deposit or withdraw their money from an account that is protected by FDIC insurance. Checking account terms typically vary from one financial institution to the next. However, they all have one convenience in common – the ability to write personal checks rather than paying cash for bills and other consumable items which is handy since you don’t exactly want to mail thousands of dollars in cash to pay off your mortgage. In most cases, credit and debit cards attached to your checking account may also be available but we are focusing on checking accounts right now.

Many banks and other financial institutions today offer numerous methods for monitoring their checking accounts as far as balancing and reconciling the account. You can receive monthly statements regarding your checking account or you can go the paperless route and conduct your banking activities online like I do. For reasons of convenience, online banking and checking accounts have become extremely popular with individuals and businesses as well, not to mention having less paper laying round.

Opening a Checking Account

Many individuals see checking accounts as being nothing more than a “high-tech wallet” however, checking accounts are just not that simple. If you are currently looking to open a checking account or have been considering switching your current checking account to another bank, here are a few critical questions to ask in order to make your final decision:

What are your specific checking account needs? Opening a checking account at the right bank is almost like trying to find the best fitting pair of jeans. The key to this part of the selection process involves beating the banks or financial institutions at their own game. And the best ways to do that are to do your homework before making your final decision on which bank to open a checking account at. It’s a matter or making a concise assessment of your specific checking account needs or requirements and doing some serious research. You want to compare the different accounts that are available as you move towards your decision.

How likely are you to bounce checks? Although this sounds laughable, after all nobody plans on bouncing a check, but this is an issue with many check writers and it can get very expensive for the habitual offender. Not only that but it can make opening a checking account extremely difficult. Statistics reveal that NSF (or non-sufficient fund) fees are the costliest of all. Here’s a suggestion. Even if you think you might never bounce a check (or only bounce one or two checks) each year, you should consider purchasing overdraft protection for your checking account. Otherwise, you will be subject to ridiculously high fees. You have enough expenses coming out of your checking account, don’t make fees another one.

Do you have an online checking account alternative? For many individuals today, the online checking accounts have been the best choice for having and maintaining a checking account. If you feel comfortable enough with exposing your banking and financial activities to the internet then it may be an option to consider opening a checking account at one of the many reputable online banks. This is especially true if you are looking for an interest bearing or money market checking account. Another benefit to consider about online checking accounts is that most tend to have lower balance requirements and charge lower fees.

Ultimately no matter where you choose to open a checking account be sure to take all of your personal circumstances in to consideration. If you traditionally have low checking balances then look in to overdraft protection, but if you tend to have high balances maybe a checking account that pays interest is a good option for you. If you’re a student you should also check out student checking account options where you can save on fees and get many other benefits. If you do your homework before opening a checking account you will find the best option for you and take an important step in your personal finances.

© How Do Checking Accounts Work? Opening a Checking Account

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1. Best Bank Accounts for Students: Student Checking Accounts
2. How Does ING Direct Work?
3. Investing for College Students

Best Bank Accounts for Students

If you’re a student who is getting ready for your first year of college, this is no doubt a very exciting time for you (it sure was for me) and I know student checking accounts are probably the last thing on your mind, but establishing a banking relationship early can be very valuable later down the line. Of all the financial decisions you need to make over the next few months like how to buy books, pay for tuition, or where the cheapest pizza is the last thing you need is a student checking account that doesn’t work for you.

So if you are wondering what the best banks for students are, we have good news…over the last few years banks have become very aggressive when it comes to recruiting college students and this has led to more competitive rates and benefits for accounts. This helps in making it a lot simpler for the student to find a checking account that best suit them.

Many banks today offer their student checking account holders conveniences such as decent interest rates, free checking, free online checking, and no minimum balances. For many students, it’s a matter of not only the above conveniences, but how convenient that bank is. In other words, how closely are they located to where the student will be living? Just like with the real estate industry, when it comes to the best banks for students it’s all about “location, location, location.”

Student Checking Accounts

The primary advantage of the better student bank accounts is that they are geared towards the needs of the student. This alone eliminates some of the financial stress of college life for most students. Additionally, interest-free overdraft protection has become a major perk with many student accounts. When you are wrapped up in your studies and an overdraft occurs, it will be interest free up to a pre-agreed upon limit. What you need to be aware of is that once you graduate, the interest you didn’t have to pay will now be due and payable.

Can anyone have a student checking account?

Rules will vary from one bank to the next regarding student accounts. It’s just a matter of whether or not you meet their qualifications. In most instances you will qualify for a student account if you are full-time and studying for an associates, bachelor or postgraduate degree.

However, some banks are offering accounts to individuals who are non-degree studying status or other courses of a higher education nature. Regardless, if you have any doubts, you should contact the bank directly to answer any of your questions.

Considerations when opening a student checking account

Choosing the right account for your particular situation may not be an easy task. There are too many choices to filter through so it can get confusing, if not frustrating, during your search. Consider the following questions before you make your final decision about a student account:

• How will your account be used?
• What will happen to your account once you have graduated?
• Is the bank you are considering offering any perks or special conveniences?
• Are there any other services that are available with that student bank account?
• Can you do your banking online as well as in person?
• How close is your bank located to the college or university campus?

© Best Bank Accounts for Students

Related posts:

1. How Do Checking Accounts Work? Opening a Checking Account
2. Investing for College Students
3. How Does ING Direct Work?