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26 Jun 2011

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Kyle Psaty

Kyle is the Editor of the DailyPerk, and is a member of the PerkStreet staff working on PR, marketing and content efforts at the Boston office. He is tasked with upholding the values of honesty and integrity and supporting the notion that PerkStreet and its customers should win together.

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What Will Happen to ING Electric Orange Now that Capital One Purchased ING Direct?
22 Comments
ING Electric Orange Capital One Purchased ING Direct

What will happen to ING? It’s a question many ING Electric Orange customers have been asking online and in the news since last week, when it was announced that Capital One purchased ING’s U.S. online banking business for a reported $9 Billion.

The deal was a must-do for ING, a Dutch company, which was forced to sell by the European Commission. This means ING Direct will exist in the U.S. only a short while longer, before being re-branded as Capital One.

Clearly, ING Direct was a pioneer in the online banking space, paving the way for even more innovative banking solutions like PerkStreet. We’re bummed that this is a win for Big Banking — especially given that Capital One initially made a name for itself as a credit card issuer. Here’s how it appears the whole acquisition will shake out for ING customers:

A Transition to Capital One will be Unavoidable

According to Capital One CEO Richard Fairbank, who held a press conference after the announcement, Capital One will have the right to continue using the ING Direct branding for one year after the deal closes, and then will continue to be able to use the “Orange Ball,” “Orange Savings,” and “Electric Orange” branding moving forward.

But orange, purple, or polka-dotted, it makes no difference. All the ING Direct Orange Savings and Electric Orange accounts will still be Capital One accounts, and many current ING customers seem concerned that things will change when it comes to the value and customer service they’ve grown accustomed to.

Uncertainty Pervades and Many are Displeased

Nobody really knows what changes will befall ING’s customers in the wake of this acquisition besides the execs at Capital One. Even the executives here at PerkStreet, long-time bankers though they are, are hesitant to guess at the outcome. The only thing that seems sure right now is that Capital One is about to become the fifth or sixth biggest bank as a result of the acquisition.

Many ING Electric Orange customers online seem frustrated about the thought of banking with a Big Bank like Capital One — it’s something that drives Americans to innovative institutions like ING and PerkStreet in the first place. Still others are already publicly threatening to leave ING.

PerkStreet is Only Getting Better

The staff at PerkStreet Financial knows how you’re feeling if you’re an ING customer. Many of us had ING accounts in the past because we know banking can be better than the Big Banks would have you believe. The good news? We have decided to take matters into our own hands. We’re committed to changing banking for the average American. It’s why so many of us quit jobs at Big Banks to form PerkStreet Financial. We have never been more passionate, more focused on building a better way to bank online than we are in the wake of this announcement.

Plus, with smartphone applications and savings accounts topping our list of priorities, PerkStreet is only going to be getting more awesome over the coming months and years. We remain committed to our vision for a better deal, even as ING has had to bow out.

If you’re looking for the next great thing in banking, spend a few minutes looking into us. Or, even better, ask our customers what they think about banking with us.

Interested in knowing more about how PerkStreet compares to ING?
CLICK HERE to read a blog post written by one of our customers wrote about why she already switched to PerkStreet from ING Electric Orange.

What do you think will happen to ING’s accounts? What changes will Capital One make to ING Electric Orange checking? Please share your thoughts in the comments.

Photo: Akyppa

22 Comments
  • Neilhill6

    well im not a fan like everyone.. signed up with ALLY to move my savings. been researching new checking possibilities. once people like you have all the accounts people like me need. checking savings then your up there… i know ALLY is just gmac. but i can get alittle bit nicer interest while i sort out my way to go…… good luck to all!!

  • http://www.facebook.com/people/Amy-Denton/100001105338577 Amy Denton

    Neilhill, no comments on GMAC as a bank, however, did you know that the CEO of GMAC gotten taken for a substantial ammount by Bernie Madoff?

  • http://www.facebook.com/people/Amy-Denton/100001105338577 Amy Denton

    Man….I have an Orange Savings account! I’ve had it for years! It really saved me a couple of times. Will be looking into perkstreet even more now

  • http://ozarkscrescentmural.blogspot.com/ Victoria-Ozarks Crescent Mural

    I’ve heard the change in ownership doesn’t happen until late 2011-early 2012.  Has there been an exact date announced yet?

    I don’t want to move over to PerkStreet and SmartyPig until October when I move and have a new address, so I’m hoping CO doesn’t take over ING until after that.

    Has anyone heard a date?

  • CathyF7

    I have no intention of being a Capital One customer… as soon as I heard the news, I transferred my funds to Perkstreet and closed my ING account.  ING was great for interest rates and I’m disappointed to hear the news, but between Perkstreet and my credit union, I’m covered.

  • gamemom57

    Perk Street would be better if there weren’t so many limits on transaction amounts.  I’ve never had to call ING to find out why my transactions were denied, but I’ve had to do that twice in three weeks with Perk Street.  And it wasn’t because I didn’t have enough money in my account.  When Perk Street can start handling larger transactions then maybe my ING accounts will move there – but until then, maybe it’s the credit union.

  • Aaron

    On a side note… I’ve been hearing about the new regulations on interchange fees lately which take effect in July (from what I’ve read). How bad will it effect the Perkstreet 2% cash back? Should we be concerned?

  • Jason Henrichs

    Aaron – great question and I actually wrote a blog post on the subject this morning. Stealing my own punchline, we don’t believe it will cause a substantial change to our program. Should the way the regulation is being implemented change and we need to adapt, our core philosophy of delivering massive amounts of value to customers. ~jason 

  • http://blog.perkstreet.com PerkStreet Jen

    The daily limit for ATM withdrawals is $500, and the limit for daily use on your card is $1500: http://www.perkstreet.com/faqs-account.aspx#account-5 
    We put these limits in place for fraud and security reasons. If you ever need the limit raised to make a larger purchase, you can call customer service at 866.792.2834 to request a temporary limit raise. I was able to do this last year to make a payment to my wedding venue. No credit card bills after the event, plus I earned perks – talk about a honeymoon!

  • Chris Figat

    Looks like you guys need to hurry up and add a savings account then :-) I was actually getting ready to open an ING savings account, looks like I may need to find another option.

  • http://twitter.com/BlogandSave Savings.com Blog

    ING has gone downhill since it first started. But, I def don’t want to be a part of Capital One.

  • Showjoethemoney

    What about there “Sharebuilder” accounts? Are those going to be handled by crapital one? Or will they close accounts?

  • Jan8022

    I have accounts at ING, and credit cards with Capital One.  As far as ING is concerned, I never understood what the big fuss was.  They hold your money when it’s transferred from another bank like forever, and their interest rates are just average.  They do have nice bonuses, though, I just earned $50 for opening a checking account, so I guess that’s a good thing.  I get a good interest rate from SmartyPig, and now I’m liking this PerkStreet for my purchases, although I don’t know where the 2% comes in for my first 90 days, as my perks are just showing at 1% earnings.  Anybody know anything about that?  At any rate, what is sad about ING going out, is that it’s just another victory for big banking, a loss for diversity in an industry which needs it badly for consumers.

  • Jason Henrichs

    You should definitely be getting 2%. Drop us a note at help-at-perkstreet.com with your first and last name and we’ll diagnose. It is likely a timing issue but we like to follow up on these things ASAP. ~Jason

  • Jan8022

    Thanks Jason, did just that.  And I second the need for you guys to have a savings account option now that an indy bank has been gobbled up…

  • RBatula

    I’ve been an ING customer for years.  Getting the notice that Cap One is taking over is unacceptable for me.  The customer service for Cap One is outsourced and trying to explain your issue was ever so frustrating.  I’ve had excellent customer service with ING and if I ever had a problem it was resolved painlessly.  I will look into Perkstreet.  In the meantime, it looks like my ING money is all going to my credit union. 

  • http://twitter.com/llboyd L Boyd

    I actually have a Capital One Card AND ING Direct checking/savings accounts. The first thing that people should know about Perk Street is that their rewards program incentivizes SPENDING, not saving. Not only that, you don’t get real cold hard cash as a reward, you get “rewards”.  So your rewards are “dollars” that are already pre-spent. 

    With Capital One, you get 1% cash back on ALL purchases and 2% cash back on gas and groceries.  This is real, cold, hard cash that you can get in the form of a check or credited against your account balance at any time.  With ING, you get real, old school interest payments for your savings in the form of REAL COLD HARD CASH.  The more you save,  the more you earn.  When I use my Capital One card, I get 25 days free credit before I have to pay off the balance.  That is an extra 25 days that my money gets to sit in my checking/savings account to earn interest.  With PerkStreet, or any debit card, that money is taken out of your account immediately (and with PerkStreet you’re not making ANY money on the cash that you’re saving – keep that in mind – only on what you spend).  Further, a credit card will offer me protection where a debit card won’t. This is more important than people think.  If a retailer error causes you to overdraw your account, it is YOUR responsibility to fight the bank, retailer, etc to get your money back.  With a credit card, the cc company does it for you.  Not to mention the travel insurance…

  • http://blog.perkstreet.com PerkStreet Jen

    Thanks for your comment! A lot of our customers have now or have had accounts with both, and it’s always great to get feedback from all sides, especially when it comes from a place of experience.

    We incentivize smart spending by helping folks get out of the cycle of debt that’s easy to fall into with credit cards. That doesn’t apply to all credit card users, but for those of us who are getting debt free and prefer to use only money we already have, it’s actually a great deal and a helpful tool. Your rewards come in the form of gift cards; you are able to redeem for 100% of the dollars you’ve earned, and you aren’t taxed on it.

    It’s actually your responsibility as a customer of ANY card, debit or credit, to report any fraudulent activity. Always check your balance regularly and immediately report anything that looks even a little out of whack. Our debit cards are covered by the MasterCard Zero Liability Policy, which covers their credit cards as well, and which you can read more about here: http://www.perkstreet.com/faqs.aspx#topten-2

    Our customers find the perks they earn to often be much more than many interest-bearing accounts provide, and prefer to use money they’ve already earned rather than borrow credit. In the end we encourage everyone, whether customers or not, to always read the fine print and make sure to choose the financial plan that’s smart for them.  Thanks again for bringing a new perspective to this ongoing conversation!

  • CathyF7

    Unfortunately, no banks are saver-friendly right now… so far I’ve earned $300 in perks in 4 months, spending only on necessities (as I’m still working my debt snowball), but to earn $300 in interest over that time, even at a very generous 1%, I would need to leave approximately $90,000 sitting in the bank!  For the 25 days the cash could be in my account to pay a $3,000 credit card bill, I might earn $2, less tax.

  • kiimberly

    I am so sad that ING Direct had to be sold. I loved them and will not be associated with Capital One. A true loss to the banking world. I am sad to see you go and fear that many will not even know about the change since they will continue to use the orange ball in the future. I will be looking to move my Emergency Fund to another bank. Hello Perkstreet?
    Kimberly Cay

  • Pre Pre 1977

    Man….I have an Orange Savings account, IRA account, my 401K was sold to ING from Citibank, and then I have sharebuilder that’s with ING. If things keep going this way there will only be two major banks. I wish I could roll all these accounts to PerkFinancial.

  • Kimbasmom

    This is a shocking revelation to me as a ING member (been for years). I’m pissed that this change was not transparent to the ING customers. I was shocked to find this out by research cause I thought my account was subject to fraudulent transaction, cause all of a sudden, I see Capital One instead of ING. shouldn’t the bank have at least sent memo/letter/emails or hell, even smoke signals to customers that ING now belongs to Capital one??? They had me running around and my other bank trying to figure out this Capital one transaction on my account. Other ING members, did you get the memo??? cause I sure didn’t get any…

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