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Capital One Buys ING Direct, Now What?

This article was written by in Banking. 68 comments.


ING Direct has been on sale for the past few years, and I’ve speculated on the rumors of possible buyers like Ally Bank and GE Capital Bank. The winning bidder has been announced. Capital One has purchased ING Direct for $9 billion.

Capital One is a financial institution that is historically known as a credit card company, but in the past few years, a series of banking acquisitions, like that of North Fork Bank, has allowed Capital One to expand its horizons a bit. With ING’s deposits, the bank will be the sixth largest bank in the United States by deposits.

Traditionally, ING Direct has been a hit with a new generation of savers. It was one of the most popular banks offering high-yield savings accounts, with interest rates that far exceeded what brick-and-mortar banks offer. In recent years, however, ING Direct had gained momentum and market position that allowed them to relax competitively against other online-only banks. While their rates are still far better than one can earn in branch-based savings accounts, many online banks offer better terms with little else for differentiation.

Nevertheless, many customers have stayed with ING Direct due to inertia as well as a genuine affinity for the bank. There is an impression that ING Direct treats its customers well for the most part, and the bank has a capable and friendly support system.

Customers are rightly concerned about this acquisition. Capital One has not always been an organization that offers the friendliest terms. The company is not as universally loved as ING Direct, but any negative publicity is usually geared towards credit cards. Now that Capital One is aggressively moving into banking, their reputation might shift for the better.

ING Direct customers will likely gain access to Capital One branches and ATMs, and that could be a benefit for those living in an area where Capital One is present. The big question is whether Capital One will maintain the customer-friendly approach to banking — no fees, no minimums, high interest rates, an easy website to navigate — that has made ING Direct a favorite among younger customers.

The biggest portion of my cash is held at ING Direct. I will be watching closely to see whether Capital One implements any changes. For those eager to leave ING Direct, consider these reviews of other high-yield savings accounts or find a local credit union that offers the service you need.

Updated. As the story continues, it gets more intriguing. My efforts to reach out to Capital One for some comments have been unsuccessful, but the New York Times was able to reprint some of Capital One’s prepared remarks about the acquisition. Here’s how the bank answered the question, “Are you planning any new fees or minimum balance requirements?”

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.

Meanwhile, on the other side of corporate marketingspeak, ING Direct’s Twitter representative broadcast: “We hear you, Savers. The plan is ING DIRECT + the best of Capital One = more ways to help you save.”

I’ll continue working on getting some answers from Capital One.

February 14, 2012 update: The Federal Reserve has approved Capital One’s plans to acquire ING Direct USA. Capital One continues to reject my requests for comments through an appearance on the Consumerism Commentary Podcast, but we might have a representative from the National Community Reinvestment Coalition, whose stance seems to be that the acquisition will not have good results for consumers.

February 8, 2013 update: Capital One has rebranded ING Direct as Capital One 360. Here is a review of the new account.

New York Times

Updated March 7, 2014 and originally published June 17, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 68 comments… read them below or add one }

avatar shellye ♦107 (Cent)

I am an ING customer, and we have several Capitol One locations here, but this acquisition worries me. I’ve only heard horrible things about Capitol One’s confiscatory credit cards and credit card policies. ING has been nothing but great since I’ve been a customer, and I would hate to see all those positive things go down the drain…

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avatar Anthony Wilson

I have just closed my ING direct an share builder accounts. I have now moved to American Express savings account. The interest rate is 1% similar to what ING is currently offering and the features looks very similar. You might want to look at them

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avatar Joe Durika

I’m most curious to see how they handle the Electric Orange checking account. This has been a lifesaver for us when we were short of funds…being able to “overdraft” and only paying an interest rate on the amount we overdraft only for as long as we borrow the money. The highest overdraft fee we ever paid was something like 27 cents…not $10-$39 that most banks charge.

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avatar Nathan Beam

DITTO

I hate pretty much all banking institutions. BB&T was one of the worst by far when it comes to screwy behavior. I love ING Direct because they aren’t evil :)… Capitol One IS evil :)… I don’t give a rip whether or not I had access to capital one’s stuff. This makes me so unhappy I will probably take my banking to some other online bank that has a clue.

P.S. – I was one of those “young people” who switched to ING Direct because they had such a phenomenal reputation (and I have only ever gotten phenomenal service). The fact that they are now owned by SCUM like Capitol One is some of the worst news I have gotten today.

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avatar RBSalmon

I have to agree with all the Savers out there.
I am very sick to my stomach to hear this is going through. Care2 / ThePetitionSite has a call to action – Tell the Federal Reserve Board that the public demands the opportunity to fully and completely raise their concerns in open hearings.
Everyone here who’s as unhappy and hates Capital One, PLEASE SIGN this PETITION:
http://www.care2.com/go/z/e/AgpEV/zl51/Ak.13

My husband and I had been railroaded by Capital One for far too long and will never do business with them again. Thank you Cejay et al for “lighting a fire under me and reminding me that initeria is a poor excuse.”

Good luck everyone!

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avatar Bobka ♦13 (Newbie)

I have had accounts with both Capital One and ING Direct for several years. Although ING has been a bit more customer friendly, I really have no complaints with either company. Capital One does need to upgrade its online operation, and maybe they will move the servicing of their accounts to ING. Right now, if you have both a savings account and a credit card at Capital One, you have to log out of one account and then back in to the other account to see the whole picture.

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avatar murdoch

i too have most of my cash in ing and i donot like institutions like capital one and im moving out

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avatar Jovanny

Having dealt with both, and in the same predicament as Murdoch, (with most of my money in ING,) I now have to shop for a new bank. Fortunately we still have credit unions!

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avatar DonnaFreedman ♦85 (Newbie)

I’m a little nervous about the change, frankly. I’ll stay put for now, but I’ll also watch for you to do a “How to choose an online bank and how to transfer your ING funds once you do” article.

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avatar Ceecee ♦53 (Newbie)

I’m with Donna Freedman. I’ve heard negatives about Capital One, and I’m wary. I’ll be watching.

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avatar skylog ♦368 (Nickel)

sigh. for starters, i was hoping any sale would be a little more down the road. secondly, i am, on the surface, a little worried about this deal. i have not had much experience with capital one, but they do not seem to have the best reputation. i hope that the deal takes some time to work out and i hope they do not make wholesale changes when they take control.

too many questions. multiple accounts? checking? savings? p2p payments? i will have to start looking at some other banks to keep my options open.

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avatar Bret @ Hope to Prosper

Online customers are much more likely to change banks than brick and mortar customers. If Capital One treats their new depositors anything like their cardholders, they will probably lose a lot of those customers. If they keep most of those ING depostiors, it will allow them to issue more credit cards, which is probably the lucrative part of their business.

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avatar Andrew Hallam

It’s always interesting when one financial institution takes over another. I know that when the Royal Bank of Canada bought a great, independent fund company called Philips, Hager & North, the mutual fund fees of PH&N went up exponentially, to more or less match those of the Royal Bank’s fund fees. I’ll be interested to watch what happens with ING.

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avatar tbork84 ♦1,867 (Half-Dollar)

There are certainly comparable online banks to ING if people are looking to immediately get out of it with this buyout. I am hoping to stay with them and get better access to Capital One’s better features, but who knows. I imagine that Capital One will be sensitive to losing a lot of their customers if they make and drastic changes to how ING works.

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avatar krantcents

Wait and see is the best position at this point! It would be stupid for Capital One to destroy a successful company.

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avatar Chaz

Agree, it would be stupid for Capital One to destroy a successful company.

Unfortunatly, credit card companeies have and will continue to do stupid things.

My suggestion is to at least have an exit plan from ING/Capital One. Perhaps a credit union. I don’t know much about Ally but I am going to research. I know USAA Federal Savings has a solid rep and ATM cards that are free to use at any ATM.

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avatar rose

Thanks for the heads up on USAA.. I almost forgot about them. I have a Cap One card and I don’t like those people. But I guess I will wait and see what Cap one does.

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avatar Cejay ♦1,521 (Half-Dollar)

I have an ING direct savings account that is just my play money. I chose ING since I would have to think before I can get money out so I would do less on impulse. We used to have a Capital One credit card and they were okay until the last few years. I told them that I would never do business with them and I will not. Thanks for lighting a fire under me and reminding me that initeria is a poor excuse. Guess, I will go to my credit union.

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avatar Khaleef @ KNS Financial

I had a couple of Capital One credit cards a while back when I was trying to restore my credit, and I had no problems with them. They had annual fees, which is the only reason why I canceled them once my credit was restored.

However I have had a small business credit card with Capital One for the past 3 years, and a small business checking account for the past year, and I have been extremely impressed with their customer service and products. In fact, my wife and I plan to move our personal accounts from BoA to Cap One in the next few months.

I agree with a previous comment that noted Cap One’s terrible online platform. But I have the same complaints about ING. I am very excited about what this purchase can mean for both banks…I expect to see many positive new products for all customers involved. I think it would be a mistake to jump ship!

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avatar ranndino

How is ING Direct online platform in any way terrible or comparable to Capital One’s? It’s considered to be one of the best in the industry.

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avatar Renee

Currently capital one has a higher online savings APR. However, I think the electric orange checking accounts are in trouble. Fortunately, I still have my account with my credit union.

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avatar GraduatedLearning ♦187 (Cent)

I’ll stick around with ING for now (as you said, inertia is keeping a lot of us at the bank). If they start charging fees or doing other weird things, then I’d actually move my accounts. It will be a hassle, but I’ll cross that bridge when I get to it. Interestingly, a month or so ago I got an offer from Captial One Bank for an InterestPlus Online Savings account. 1.1%APY, plus a 10% bonus on interest and a $50 extra bonus. I was wary of opening an account with them, especially since it wasn’t much better than ING’s rates. I wonder if the merger will bring along this 10% bonus idea (it’s a 10% quarterly bonus on interest earned with an average $10k monthly balance in the account). I’m not quite clear on how the math works out on that. I guess 10% of 3 months of 1.1% interest?

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avatar jimmy

Just want to add my 2 cents.

I’m an older fart who stayed because everything just works. I move my savings around to try to get the best rates, but I’ve kept my checking with ING. Their bill pay is reasonable and the money gets to the payee when they say it does. I don’t use ATMs much, the Allpoint network isn’t much of a hassle. Transferring funds around is easy and downloading transactions and statements is a cinch.

I don’t know why Cap One bought ING Direct. If Cap One starts increasing their fees, charging new fees, or just generally screw up what’s working now, I’m outta there. They need to understand that while inertia might be keeping me there, I’m not one of these BoC or Chase whiners that complain about getting screwed and doing nothing about it. I’ll be out in less than a month if they blow it and won’t come back.

Hopefully, someone is being paid to read these blogs and report to the higher-ups.

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avatar Chris Jordan

I can only suggest avoiding Cap One like the plague. They have hounded me over 10 years for money I do not owe. Never borrowed from them, never will, so money for customers/stockholders will never come from me. I will never pay for a made up imaginary loan from the early 1990s! Losing situation; sorry ING is now involved in that wolf-in-sheeps-clothing Cap-One business.

My credit union has been terrific. Although I have a small account with another major bank; they have done all business efficiently and well – but if it ever links with Cap One I will close that account immediately.

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avatar qixx ♦1,895 (Half-Dollar)

It is time to start looking for an ING exit plan. I hope that one of the other top notch online banks offers a ING transfer promotion. I know some B&M banks did this when Chase bought Western Bank in my town growing up. I’d love to see Ally do the same for ING customers.

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avatar DJ

I’ve been with ING since 2004, and when this news came out, I immediately began moving my accounts elsewhere. I knew ING was up for grabs, but I was holding out hope that the buyer wouldn’t be quite so shiesty.

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avatar David C

I have accounts with Capital One and ING, so I’ll try to compare the two the best I can.

Savings Accounts:
Capital One pays a little bit more than ING, although that might not continue once Capital One’s number of depositors increases post-merger. Overall, if you’re just looking for a place that holds money there isn’t much of a difference between the two.

Checking Accounts:
This is a huge difference between the two: Capital One doesn’t currently offer an online-only checking account. In fact, ING’s Electric Orange is the main reason I’ve stayed with ING. I have no idea what the long-term Capital One checking account will look like post-merger, but I’m definitely concerned that features will be taken away that we hold dear from the current Electric Orange.

Certificates of Deposits:
Granted, the rates from both banks are pretty bad right now but in the past both sides have been decent. ING has a clear edge here, with no minimums (Capital One requires at least $5K) and it is much easier to open and close the CD. Capital One’s only real advantage here is that their rates have historically been somewhat higher than ING’s. Managing my Capital One CD was harder than my ING CDs, in particular opening and closing them. ING’s website makes it easy to close your CD upon maturity; Capital One, on the other hand, requires that you contact their customer service to do so.

In closing, I think either bank is fine (for now?) for a simple online savings account, but the other aspects (Electric Orange, CDs, overall website experience) are clearly in ING’s favor. I may eventually look for a new online checking account not because I’m anti Capital One, but just because I prefer to spread my money around.

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avatar David C

Slight correction, Capital One has offered an online checking account since 4th Quarter 2010. It has the advantage of offering paper checks and ATM fee rebates, but otherwise ING’s Electric Orange would still seem better to me.

Take that opinion with a grain of salt since I don’t have a C1 Interest Online Checking account.

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avatar David C

It’s funny, but the reaction on here and other places such as the Consumerist seems to boil down to the following
* ING customer only: NO! I’m leaving!
* ING customer w/ C1 credit card: NO! C1 stinks! I’m leaving!
* ING and Capital One Direct Banking customer: I’ll wait and see

;-)

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avatar Jennifer Collins

That stinks. I don’t care for Capitol 1. RIP ING I never even got a shot with them:(

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avatar Bob

Ing 401k sucks ass with a straw. I’m very concerned with my 401k plan that hold.

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avatar Michael S

ING Retirement is a completely different company than INGDirect, although they have the same parent company.

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avatar Michael S

INGDirect’s corporate culture was centered on mantras like “No minimums, no fees,” “Credit card debt is bad for consumers,” and “Be fair an honest.” Their CEO stated the mission simply: “Leading Americans back to saving.”

They are in many ways the opposite of Capital One, whose culture is centered on maximizing interest and fee income from their customers. Their corporate image of rampaging vikings is appropriate. They seek to conquer INGDirect’s 8 million customers, get them addicted to credit card debt, and punish them with fees.

Ironically, only if INGDirect’s customers escape (close their accounts) before the regulators approve the deal might INGDirect survive. If enough customers leave, Capital One can withdraw their offer, which would leave ING Group with two more years to sell INGDirect to someone else, or beter yet, prepare for an IPO.

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avatar Emily

Had Savings/CDs/Easy Orange mortgage with ING since 2002. Picked up Electric Orange recently for the new customer money, but I’ve always relied on State Farm Bank for checking. State Farm Bank offers refunds on all ATM fees and charges none of their own. Sad to see ING go.

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avatar Nicole S

I was so bummed to hear that ING was being sold out. I was referred to ING from a co-worker and was really excited to open a savings account and not even a week after opening the account, this news shows up.
We have been on the Dave Ramsey Total Money Makeover plan and just about to go to baby step 3 for our 3-6 month emergency fund and thought a high interest savings was the best way to go about it since it’s really not a “investment” account. But after learning everything that we have there is NO WAY we will continue to support the big bank corporations. We had banked with Washington Mutual for years and when Chase came into the picture things slowly started to change for the worse and I have a feeling the same will happen with capital one and ING. I guess it’s more of a moral thing for us and my husband and I will be taking our business else where!

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avatar KJT

Yea, when I read the letter that came with my June eStatement I was disappointed. I would really like know why the CEO of ING, USA, Arkadi Kuhlmann decided to follow through with the sale. If my memory is accurate, I think he mentioned this possibility a few years back. If only the initial days when I first signed up with ING about 10 years ago, would come back. My first investment with ING was in their Orange Saving Account at about 5% APY (if I remember right). Hopefully, they will keep their customers up to date with the changes as they get to know what they will be. An agent told me; “we do not anticipate any changes. Things will be status quo.” Capital One is going gang busters. My Sony Visa card was with Chase and last month, Capital One sent me out a new Sony Visa with the new terms. I was actually surprised. They read very similar to AMEX’s new policies that were sent out with 2 AMEX credit cards I have. It will be interesting to see how Capital One deals with these “new financial services.” Darn!

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avatar KJT

After talking to ING’s agent, when I ask how things will change I keep hearing; “Things will remain business as usual around here.” Not sure if it is that they do not have the changes on paper yet or if Capital One will really try to keep this as close to what ING created over 12 years ago. Almost like an ING that looks the same, smells the same, walks the same, but has a different owner. The least Capital One gets their “hands” in this sale (from the customer’s point of view) the better, as far as I am concerned. All I can say now, is that I will have to wait and see. Having dealt with both Chase/JP Morgan and Capital One, as a “Bank” they suck big time, but this is a bit if a different business that they have purchased, so I can only hope they will try to keep it as close to how they purchased it as possible. I can’t see the future, but I can hope. The second I see it going down the roads of the Capital One Bank as I have known it, the quicker I close my account and look for the next best deal.

When I read people who have a need to say, “hate” as many times as Ms. Grey did, I just think how I hope they did what they could to make the business they hate so much know why they have this kind of hate toward them, looked for websites that publish one’s complaints out in the open for others to see, and really took this amount of hate and tried to put it into action. that is really what will hopefully cause others to think twice before they join the hated bank or financial institution. When I made my post, one of several, on Chase’s corporate website, where customers can post their opinions and examples of the institution, unfortunately I did not see many comments about how Chase treated our service men and woman like foreclosing on their homes, penalizing them with $15 penalties here and $20 penalties there, and other ways they mishandled their customers. I have never understood how people can complain about a company but not share this hate with others, not worrying if it will do any good or not. It is important in all of these type of situations that you not only toy Hate 20 times but that you do what you can to share with others why and where this hate comes from.

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avatar Jaycee Grey

Hate, hate, hate, hate, hate Capital One. Not sure where I’ll go next, but I will not do business with them ever again.

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avatar Jaycee Grey

My hatred comes from their overall business practice in the credit card industry. Low intro rates, hike them up, sneak in fees, when ppl try to pay off the card, give them a charge-off amt instead and then send collections after them for monies they weren’t aware they owed. Basic business-as-usual for CC companies. I won’t be banking with them.

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avatar Vinnie

My opinion of Capitol One CC is very low. I don’t have any experience banking with them and I won’t keep my savings with them. Perhaps they will surprise consumers and continue ING’s great policies, but I’m not going to bank on it. (pun intended)

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avatar Daniel Fajardo

Like many others here, I’ve been pleased with Ing for many years. I do have some bad customer service form Capital many years ago, and I closed my account with them.

I’ll take a wait and see attitude, and if I see Capital trying to connive me, then I’ll close my Ing account and go elsewhere.

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avatar Danny

I really don’t know what there is to “wait and see”.

ING Direct was great been a account holder since 2004, just opened an Electric Orange account just to hear this. I was never charged a fee and ING encouraged me to keep saving more money.

But companies like Capital One is no different than these other vultures that cause the economic down turn. They care only about fees and how to squeeze money out of us, then they want you to put all of your money in their banks so they can use it to make more money for themselves.

I also bank with BofA (totally nightmare) the only reason is that their technology is so far beyond any other bank, transferring money to other BofA customer for FREE. I also have a SunTrust account which is ok but they don’t offer a lot of good products. Transfer to other ST customers cost $3, their deposits are slow especially when you use the ATM, they are advertising that it does the same as BofA but it totally doesn’t.

I am now looking to open a Credit Union Account. I just don’t trust these Big Banks because they are simply shady, greedy and couldn’t careless about their customers

Fees and charges is their principal and it will change, maybe not immediately but be rest assured that the good old ING Direct banking days are over. Fees will appear soon and then it is nothing more than another vulture bank.

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avatar Harry Smith

Capital1 is a Bad BAD bank, the VERY WORST BANK OF ALL, and one of the greediest, customer-abusive in existence. BEWARE!!!!! Have no dealings with them. I’ll let my ING accounts die having switched over to Ally Bank, which is very good. Wanna speak with someone at cap1? Good Luck. You’ll get connected to a foreign country which can barely speak English. Write a letter? They won’t answer. You’ve been warned.

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avatar Democritus

Over the years, I had come to believe that ING was run more like a traditional bank with high cash reserves and modest/generous interest rates for savers. This is very different that the “banking” casinos and/or predatory lending operations that dominate much of the US banking system today. So, I was surprised to learn that ING was also crippled by the banking meltdown of ’08 and needed EU bailout assistance to stay in business and under terms of the bailout agreement, ING must divest its US interests. I am glad that ING has survived, but I believe that this divestiture is very unfortunate for ING’s US banking customers like myself and the US banking market in general.

Speaking of banking meltdowns and predatory lenders: The sale to Captial One makes no sense whatsoever. Philosophically, the companies are so different. Capital One has built it’s reputation on borrowing (focusing on the worst kind: credit cards). Whereas, ING has built it’s reputation on savings (with competitive interest rates). How much more different can two banking companies be?

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avatar jmk

Democritus, the two opposites actually make sense: one has a bunch of $ saved; the other has a bunch of lending tools. Now will we ing folks want to borrow from capital one? That’s another question..

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avatar jasonhad

Puhlease ! ING is an enormous Dutch Bank/Insurance company, much larger than Capital One. In Europe they are rapacious – but they still built a consumer-centric on-line banking business in the USA, proving that even old bears can learn new tricks. Capital One is staffed with a lot of very bright people, and they are not going to risk losing their $9 Billion investment by changing dramatically the on-line business – they’re probably going to expand it and grow both revenues and profits.

That is, if they can figure out a way to keep Socialist Barney Frank and cohorts at bay. All these naysayers are forgetting one thing – if they don’t like the new policies implemented by Capital One, they have many places to go. But if they want to get rid of a hack politician like Frank, they have to move to his district in Massachusetts and vote him out – next year..

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avatar Danny

jasonhad – First of all, you must be either a Capital One Employee, one of those delusional Republicans, or watch too much Fox News. We are NOT in Europe and we have absolutely no idea how ING works over there and I seriously doubt that you do because you would have to live in Europe and have been banking with them for quite some time to make this assessment. We are in the United States of America and on the track record that ING had here and me being an 8 year long customer with nothing but good things to say unlike my other Banks such as Bank of America, SunTrust and I also have been a Wachovia customer for many years but shut it down due to the typical American banking antics.

Our economy faltered due to the financial sector ALL these banks preying on their consumers because the motto is simply “Charge Fees make Money” and Capital One is right along in there. Greed most of the time doesn’t let you think rational and I am very convinced that Capital One saw the ING market as “Young, high earning and saving” which equals to more money to get. So they may keep the ING business model for sometime but I guarantee that fees will be introduced and they way banking is done will definitely change. Just as the big banks have with going from Free Checking to charging anywhere from $9 – $20 per account, plus charging to have and use a debit card along with all these new tricks for them to get more money.

Also you comment about “Socialist” I seriously doubt that you know what a socialist really is, I know many immigrants that fled socialist countries and they simply laugh at the so called conservative labeling of a socialist as they have absolutely no clue what it is like. If I am paying almost half of my salary to the government I expect my government to step in on things that affect my welfare if it is Healthcare, greedy bankers, etc. In addition it is hard for me to really respect a word that is being said from people that refuse to pay taxes like I do as a real American. So to the Capital One merger, I also believe that it should be slowed down and it needs let the public aka ING consumer weigh in because we do not need another Bank of America, Chase, Well Fargo, etc.

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avatar jasonhad

Danny-boy, you are so knowledgeable! I’ve been a Wells Fargo customer since 1966 when i went to Vietnam for a couple of years when Lyndon Johnson sent me over, and of ING since they took over Banque Bruxelles Lambert in 2001, I have an Orange savings account as well as a Capital One card. But I demur to your 8 years of deep understanding of ING. I must say, though, that I enjoy having my Wells account free and the complimantary debit cards as well. My ING account costs about $125 a year, but I figure it’s worth it and I would hate to see the staff at my branch have their wages cut, as they have always treated me with respect and courtesy. They have the mortgage on my home in Brussels, but the rate is reasonable, and I’ve never had cause to complain. I have no idea how Wells manages to make money on my accounts, as the mortgage on my house is only 4% and the rate on the credit card just 7%.

Being neither an afficionado of Palin nor Obama, and watching Fox News only as an antidote to MSNBC – preferring the BBC – it is hurtful to be called a delusional Republican, but you care not a whit for that. You obviously have far more knowledge of the reasons why Capital One wants to buy ING USA. I am confused about the “banks preying on their consumers” though – do you think they should provide their services without being paid? What about the wages of the people who process your checks, smile despite your foul mood, transfer the funds to and from your accounts, stand guard over your deposits? Shall they be paid by your government? You apparenty already resent paying half your wages in taxes – I assume to local as well as national government – shall government stop teaching your progeny, policing your street, providing essential services?

Oh, and thant you for your personal guarantee that fees will be introduced. If they are not, will you send me cash or a check? I do prefer cash – much more discrete.

As for socialism, I speak mostly of that as espoused by Robert Owen and by Saint Simon, with whom I am sure you are familiar – not the brand used by the USSR or Venezuela.or the PRC. I take note of your doubt about my knowledge, which I am sure is not unfounded.

I take exception to your comment that the American economy faltered because of the financial sector. It was the greed of millions of Americans, who took advantage of the idiotic policies of the American Government to promote home ownership by directing Fannie Mae and Freddie Mac to accept mortgages that were termed “liar loans” and others that were for 100% and more of the appraised value of the home being financed. It was the general greed of the populace, the “flipping” of home after home for a profit, the signing of mortgages which the borrowers knew fully they could never hope to repay, but might be able to sell out at a profit, the disire for an RV or a couple of ATVs, or an European vacation – and the complete failure of the SEC and other regulatory bodies to fulfill their function of prevention of excess. The SEC allowed investment banks to create assets from thin air as “uncollateralized Credit Default Swaps” and Collateralized Mortgage Obligations where the underlying asset was hugely over-valued, to “slice and dice” mortgages in tranches and sell the inconceivably anonymous bits and pieces to greedy pension funds and hedge funds in search of high yield, damn the risk.

“We have met the enemy, and they is us,” called out Pogo. And so it is. It’s the selfish acrimony, the anonymous insults that Americans feel compelled to direct at other people – as the politicians direct at each other, the pundits on television direct at anyone with whom they disagree, and as you have done with me, that makes Americans less and less admirable in the eyes of the world.

Congratulations.

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avatar Danny

jasonhad – One thing I stated ING in US and Europe two different things. It is comparing Apples to Oranges. Yes, I agree that the entire American population is at fault, however if you give someone the means than most likely they will take it. The banks “prey” on citizens in several ways, their perverse fees for one. $35 – $40 for a $5 overdraft? Sure you can contest that you shouldn’t overdraft but seeing that it has been the banks 1/3 of overall revenue generator shows that obviously that Americans either live paycheck to paycheck or just not good with money. So the banks exploit it, ING charges interest only. Not sure how you pay $125 per year on ING when I have never paid a fee ever.

As far as banks doing things for free. No bank does anything for free and when you look at the banks portfolio they “earn” quite a nice loot. Let’s take in consideration what happens with “my” money that sits in the bank, does it just sit there and wait for me or does the bank use it to make investments, loans, etc that in turns profit that we may get 0.25% on and most checking doesn’t even offer interest. Why were banks so afraid that people pull their money out of their accounts? I would assume it would kill their cash flow. So banks get a nice penny on everything they do, it is just that it is never enough for them.

There is such a thing as abusing your power just because you can. It is no different that just because I am stronger I can just take yours, your price to pay for being weak. My issue with delusional Republicans is quite simple, they are just hypocrits and master of rhetoric including hate mongers. They fed the public with half truths and a nice amount of lies, I wonder who all of these CEO’s are? What I do applaud Obama on is that he is slapping the hands of those corporate bullies, he is far from perfect but when I listen to how Republican blame Obama for what they have created for decades it’s quite shameful. The recession started in 2007, Obama didn’t take the office until Jan, 2009 which means that this puppy was already in full motion when the administration switched. When I hear our country asking “Where are the jobs”, well let’s take a look that majority of jobs went overseas by these corporation and they received tax breaks to do so. Our government is nothing more than a corporation as well and for the record I have absolutely no problem paying my share in taxes, however I do have a problem when I have to forfeit my salary but the uber rich get all kinds of incentives not to and hear the Republicans cry about having to pay taxes just like me. I never had welfare, medicaid, or any government assisted type program and most likely I won’t see a dime of Social Security even though I keep paying into it. So I would assume that majority of tax dollars really go to the politicians and military, maybe law enforcement but most likely my tickets pay for that.

There is a thing as overkill or modesty, banks like Capital One are operating in overkill. The question is this, if you have no options and someone offers you 1 options but the price is almost like selling your soul taking a snap shot of our country people are willing to sell their soul for a piece of made up dream that is being marketed by all these companies. Home ownership is totally overrated because what needs to be understood that you will NEVER own anything in this country. If you finance anything you do not own it, even if they dress it up that way, I am pretty sure millions of American can bear witness to this. And even if you pay your home off you still have to pay property taxes, home owner association fees, and fees if you sway from the proper code enforcement such as not having the same mailbox as required.

I am not to concerned about paying you if Capital One starts to charge the fees ING doesn’t because it will happen in time. LOL

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avatar JoshRoven

three words: FRACTIONAL RESERVE BANKING

have no sympathy for any bank, ever.

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avatar Rich

Question, I’ve been in a dispute with Capital One over money that they say I owe to them when I know that I paid off the account. Can they “take” that money from my ING account if they become the new bank? This is what worries me the most. I still have my linked TD Bank account if I need a quick exit. Considering opening up an Ally account to avoid the fees charged by TD.

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avatar softwareguy

LOL, I have the exact same question? Although for me, my last payment was in 2007 so the statue of limitations has run out for them to collect on me in Cali. But since I have so much cash with the, I am a little concerned about this.

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avatar Mergers & Acquisitions

This is the worst news I could possibly fathom. Capital One and their underhanded ways of parting people with their money in no way shape or form are going to change. Fees upon fees upon fees, Capital One in a nutshell. These white collar criminals have simple found a way through legalese to steal. My money will go to another institution before ever remaining in the hands of thieves. Screw me once shame on you, screw me twice…

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avatar Dtatl

Why is not other company stepping up like Ally? I just don’t think Capital One will keep the ING culture. They may let it go on for a year or so but than eventually go into a fee structure like all these other banks are doing. I just don’t see Capital One doing it any other way. It like getting a Lion to become a vegetarian

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avatar LL

I have a mortgage which I originated with another bank in 2003 that was taken over by Capital One when they took over the mortgages from that bank in 2008. And I have to tell you that Capital One is incompetent and evil. In NY State, property insurance has to be paid as part of the escrow to the lending institution so they pay the insurance directly. They allowed the insurance to be cancelled for non-payment and never told me about it. I only found out when I called my insurance broker about a claim. I then notified Capital One and they did nothing. Except that 2 weeks later they sent ME a letter indicating that I no longer have property insurance and it’s my responsibility to secure insurance and let them know. .
This was a trick so they could apply their own much more expensive insurance. I’ve had to go through the hassle of finding another insurance company while they have continued to collect the escrow for the insurance for the past 3 years without paying a penny.
This is a sleazy institution.

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avatar Robert Brown

I’ve had an account with Capital One for the past year and a half. There are no fees on the accounts I have and the interest rates on savings accounts were great but have dropped some. They are one of the few banks still offering rewards on debit cards. I’ve also had nothing but great service from the local banks in and around the DFW Metroplex. I see nothing to these claims of worry and fear being posted here. You guys should calm down. Now, I still have accounts at Chase but that is only until Capital One updates their ATMs to take check & cash deposits like BoA & Chase. Once that happens, Capital One will have all my business.

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avatar Mike

“many customers have stayed with ING Direct due to inertia”

Exactly. Finally got off my ass yesterday and joined a credit union.

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avatar Joe Schmoe

You’re living in fantasyland if you think ING isn’t going to go straight downhill once their ship is part of Capital One’s pirate fleet. ING has, in fact, already bitten the dust in my mind. Long ago I created a savings account with them because they offered the best interest rates and because their user interface was pleasant. I also figured they would continue to offer the best rates because they were purely an internet operation with no storefront business expenditures. The interest rate they offer is now 0.8%, lower than AMEX’s 0.9% and many other institutions. If ING can’t even offer the best rates, then they are a worthless entity to me. They remind me of Apple. So many suckers out there living in a fantasy world like to champion certain companies as the beautiful people, the customer-oriented outfits that treat their employees and their customers right, that never violate labor laws, and who keep their carbon footprint to a minimum. Well, we all know that this image is a sham when Apple is concerned. They’re not the shiny happy people-person company that the hipsters seem to think. Same goes for ING. The very fact they’re lying in bed with Capital One proves that they’re unholy, and they no longer offer the best services (i.e. best rates). Join the real world people. ING is done. They’re part of the dark lord’s empire.

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avatar Danny

The problem with consumers is that they get complacent and pretty much get brainwashed with their own convenience. I learned to to use these companies for what they have to offer and when they no longer benefit me I go somewhere else. Loyalty in America is dead, they would like to make you believe that it pays off but it doesn’t never, just like a job when they decided to do something else regardless of what you have given they will thank you for your service and drop you like a hot potato.

I bank with quite a few banks, I use the big ones because of the technology and availability, I am keeping my ING account because I am paying no fees and they have been good to me (knock on wood). If Captiol One is taking over and change things up to where I can’t use them anymore, I simply move my money into my other bank accounts. I will NEVER EVER use one bank, I split all of my money across a minimum of 4 banks because for one I don’t want them to profile my spending habits nor know how much money I make. Because banks keep a very tight profile on their customers to what comes in and comes out, they can guesstimate the type of person you are to market products. So I am removing myself by splitting my finances across several banks plus several investment accounts. If one bank acts up, it won’t be put a few keystrokes and the money is out and I won’t miss a beat

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avatar Bebelyn

Its sad to hear that Capital One bought ING, but after issues in the past with them. I will be saying goodbye to ING. I am not risking my savings and my kids savings. Capital One customer service is unprofessional and rude. What a disappointment.

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avatar Robert Brown

I’ve had nothing but great customer service from their branches in the DFW area in Texas. I’d switch completely to them if their text/email notifications came more timely and had the full transaction information. They still have a ways to go with IT in their bank systems.

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avatar LtFluff

I really wish they would hide no secrets, and reveal all that is to come. If there is going to be fees, say it. If you are going to do away with free, interest-bearing checking, say so. If you plan on dropping or eliminating the % yield on savings, tell us. If Capital One is going to implement their business practices with ING customers, PLEASE let us know. How you expect this to end well? Capital One has such a bad reputation with customers, I’m surprised they are still around. ING Direct has never done me wrong. Not one fee, ever, aside from a book of checks costing about $5. I have heard too many stories from friends, family and co-workers about how Capital One provided a horrible experience. They haven exactly been the best banking option out there. I’ll be keeping a close watch, one i notice bogus fees and nonsense service, my ING account will be drained into a Chase account.

I would hate to see ING go down the same path Capital One did

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avatar Robert Brown

Free accounts are vanishing fast. There are ways around most requirements and still have a free checking account. Ever do consulting work or sell items on eBay? Open a small business account and enjoy the benefits. You’ll have your free checking and better Rewards. Many will even let you open a personal checking account or link one so you’re still free. If you want to compare features in other areas, go to Capital One’s site and key in a Zip code for that area. For the DFW area, you can use 76101 (Fort Worth). Customer service really is good in my area. If you have issues with it in yours, be sure to let them know by calling. Mystery shopping programs hit this area often. I’d be surprised if they don’t keep tabs in your area or soon will. The poor customer service could be the anger felt by ING employees towards being bought out.

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avatar stupidrequirement

I’m closing my ING account tonight.

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avatar Danny

The bottom line in regards to the merger is this, ING business model was unique and their business model was to encourage people to save and contribute more money into the customers account. They provided an environment were customer wanted to do this. No frills account, easy access to your money and not trying to rape them with perverse fees and charges.

Capital One’s business model is the same as a Bank of America, Wells Farge, etc. It’s main business is credit card which means their only purpose is to in-debt their customers and extract as many fees and charges in the process which is the direct opposite of what ING provided.

Many ING customers became ING customers for that particular reason, if they wanted to bank with Capital One, BofA, Wells Fargo, etc they could have done so and many left Capital One because of the same reason as well. Let’s not forget that banks solely make money off OUR money. Not sure how any of us would feel if we ask someone to hold our money then to find out that it was used to make more money but not getting anything for it.

So banks providing us loans or credit up to 20% interest is off the money we give them but only them reaping in the benefits. The main goal for banks is to have customers put as much money in these accounts so that they can use it and penalize you if you don’t keep much money which where the account fees come in play. Perverse overdraft fees unlike ING simply charging the same rate that they are paying you.

ING on a $15 overdraft for 10 days would cost you maybe a $1, however at any other banking institution it will cost you a mininum of $70 if this $15 is attributed to two transaction you can add another $35 which makes it $105 versus the $1. This is the main difference between ING and any other major bank including Capital ONe.

Anybody thinking that the ING culture will be preserved is delusional, new management always brings in changes especially when they already have a their own way of doing things. So at this point staying with ING is no different than banking with Bank of America or any other major financial institution. Of course they won’t change things overnight but usually they will implement subtle changes because in a year or so we will no longer think about how things were at ING since it the past. Now it’s Captial One and how most consumers are they will just put up with it because they don’t want their convenience challenged.

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avatar Ray @ The Crude Oil Trader

I am more interested to know how this will after the awesome trading and investing platform wing of ING Direct, Sharebuilder. I get 12 trades [buys that is] a month for $12.00. I hope that is safe and secure for decades to come.

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avatar AJW

I was thinking to expand my business with ING and open a checking account. But upon reading of the Capital One acquisition, I have no desire to do business with this company. I just opened an American Express savings account and am transferring my ING savings to that account.

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avatar WM

I moved my money FROM a Capitol One online account BACK to ING last year after Capitol One lured me with a high interest rate, then immiediately began to lower and lower it so that is was below the ING rate. I also had an ING Orange Loan Account that I was literally about to use next week, when this morning I get an abrupt email saying “your organge loan account has been closed – we are not offering this product any longer… nothing personal, just business” THANKS FOR THE HEADS UP Capitol One!! No email saying “we are phasing this product out in the 60 days so plan accordingly” or anything… Just an abrupt ACCOUNT CLOSED. I guess charging me fees for their use of MY money, while lowering the interest rate to 0.001% will be next…..

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