bank rates

Will ING Direct Customers Seek New Ally?

Ally is trying to woo ING Direct customersAlly Bank didn’t buy ING Direct, but it’s working hard to get ING customers anyway.

In an open letter to “savvy ING Direct account-holders who are looking around and considering their options,” Ally points out the similarities to ING Direct’s products, like online savings accounts and no-fee banking.

The online bank also touts what ING Direct doesn’t have, like round-the-clock customer service and daily compounding interest.

The savings account rate’s not great — 1.04% APY — but then again, no one’s deposit rates are great right now.

True, its short-term CD rates rank just below the best nationally available deals, and its 48-month bump-up CD is a good buy.

I have been considering alternatives to ING Direct since the sale, even more so after a New York Times interview where spokeswoman Tatiana Stead put so much PR spin in her answer to whether or not Capital One would charge fees that I got dizzy:

“ING Direct has built a large and valuable franchise of engaged customers by focusing on a few simple proconsumer products. We deeply understand the value of the loyalty and advocacy ING Direct has been able to build with its customers. Everything we do as we integrate our businesses will be thoughtful and surefooted with a focus on sustaining and building that customer loyalty. We will focus on the customers, channels, products, and pricing strategies that build the best long-term customer relationships and deliver the best cost of funds.”

Translation: Expect fees, at which point I will jump ship, and I bet a lot of ING Direct customers will, too.

In fact, there have been a number of people on Ally Bank’s Facebook page, where it’s also trying to woo ING Direct customers, who claim they’ve already left ING.

Said one commenter: “Was an ING customer, but switched to ally about a month ago after the takeover. Love everything about the bank so far. Service is great, and the fact that I don’t have to pay any atm fees is amazing!”

While the bulk of my emergency savings funds are still with ING, I’ve opened up small savings accounts with American Express Personal Savings and Discover Bank, just to see if I like them or not.

This letter won’t get me to switch right now, but Ally is definitely on my list of ING alternatives.

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Comments (3)
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3 Existing Comments
  1. p said:
    on July 28th at 10:23 am

    Capital One’s online savings is better than ally or american express, so I’m not sure why customers would want to jump ship. Also, there is no fee of any kind for the online savings account at Capital one.

  2. Mike at Bankaholic said:
    on July 28th at 11:00 am

    We should point out that of the banks mentioned Discover Bank is offering the highest savings rate of 1.15% APY, while Capital One is paying 1.10% and ING Direct and American Express are paying 1.00%.

  3. Creighton said:
    on August 1st at 03:23 am

    2 Percent cash Back on Visa Debit! No Atm fees & anyone can apply nationwide!! http://www.bankofgeorgia.com/personal/checking/cashback-checking.html