ING bank tests new free bank accounts

[RCrein]

FYI SUN Ottawa had an article yesterday "Drastic Changes for ING" in which a test of free chequing accounts was announced. Unlimited transactions, FREE email money transfers (think electronic rent cheques). They call them THRiVE accounts. 10,000 accounts will be set up starting Sept 14th with full launch scheduled for early 2011. Hope this shakes up those fee hungry big banks.

 

[housingrental]

What is there main profit generating activity from these accounts?

 

[REINteam]

From my experience with ING (both with investment RSP and Tax-Free savings accounts), I would like to think that they are not pulling a lot of their income from an account like this new FREE account they have proposed. The fact that they are a completely virtual banking institution keeps their overhead low and allows for them to give higher interest rates to the people that bank with them.

This is just a speculation, but I think a lot of their profits come from their mortgages obviously generated from the interest.

Overall, I`ve had a great experience dealing with ING for savings services. Good interest rates (as far as "good" is concerned on rates for a savings account), but their customer service department stands out a head above the rest, including my own bank (won`t name names). I would recommend checking them out if you haven`t already.

 

[Albertritchot]

I`ve never been able to find in Alberta a competitor as strong as this Mennonite Credit Union.

Here it is:

http://www.rcu.mb.ca/main/content/view/40/242/


http://www.rcu.mb.ca/main/content/view/50/244/

If you find an equivalent competitor in Alberta, please mention it on the board.

 

[chester]

QUOTE (Albertritchot @ Aug 20 2010, 02:18 PM) I`ve never been able to find in Alberta a competitor as strong as this Mennonite Credit Union.

Here it is:

http://www.rcu.mb.ca/main/content/view/40/242/


http://www.rcu.mb.ca/main/content/view/50/244/

If you find an equivalent competitor in Alberta, please mention it on the board.


Peoples Trust has a 2.1% interest savings account and a 3% interest TFSA regardless of account balance.

 

[housingrental]

Thank you Madison

 

[JoeRagona]

QUOTE (MadisonNorton @ Aug 20 2010, 01:59 PM) Overall, I`ve had a great experience dealing with ING for savings services. Good interest rates (as far as "good" is concerned on rates for a savings account), but their customer service department stands out a head above the rest, including my own bank (won`t name names). I would recommend checking them out if you haven`t already.

I agree fully with the ING quote! It`s how I began saving for my future before real estate and still do with my staying power funds etc.

 

[REINteam]

QUOTE (chester @ Aug 20 2010, 01:37 PM) Peoples Trust has a 2.1% interest savings account and a 3% interest TFSA regardless of account balance.


That`s actually a very good interest rate. ING is offering 2% on their TFSA right now which is good in itself. I just had a chance to browse the People`s Trust website and it looks like they function fully online as ING does if I`m not mistaken. Definitely something for people to look into.

https://www.peoplestrust.com/main/

 

[Rickson9]

I`m no expert, but speaking for myself I would never open a savings TFSA just to hold cash or GICs. I could even understand a mutual fund TFSA, but for me, it`s self-directed only.

The only caveat is that some institutions will charge an annual admin fee on a self-directed TFSA account unless the individual has another self-directed account with $100K+ in assets.

Having said that, as a disclaimer I do not use my TFSA for "emergency funds". In the situation that an individual is using their TFSA for "emergency funds" it may be appropriate to open a savings TFSA.

 

[mortgageman]

i had a meeting with an ING business development manager yesterday and he mentioned these new accounts. They plan on being able to leverage the deposts and lend out more mortgages so that will be the profit centre.

QUOTE (housingrental @ Aug 20 2010, 10:33 AM) What is there main profit generating activity from these accounts?