We recently previewed ING Direct’s electric orange checking account and now it’s arrived for the masses. Previously only individuals already signed up for ING Direct’s electric orange checking account could sign up for the electric orange checking service, but now the floodgates have opened and anyone can sign up for the service

The Electric Orange Checking Account is an internet based interest checking account. For balances up to $50,000 you will receive 4.00% APY, higher than the 3.00% APY originally stated. For balances of $50,000 to $100,000 you will receive 5.05% APY, and for balances of $100,000 or more, you will receive an interest rate of 5.30% APY. These are perhaps the most competitive rates on the market for an interest checking account, but it does come at a bit of a price.

Ironically, you cannot write paper checks with your ING Direct Electric Orange checking account. Rather you can send money to people securely through electronic checks. You need the person’s account number and their bank’s routing number, enter how much you would like to send to them, and the money will be sent through an electronic transfer. You are also given free ATM access through any ATM Machine in the Allpoint network. There are about 32,000 of these nation-wide. You can have ING Direct mail a paper check for you if you absolutely need one.

With the account, you will never have to pay another NSF fee again in the event that you over draft. Rather there’s a built in automatic line of credit at 12.25% that money will be borrowed against to pay the check rather than rejecting the check and charging you a $30.00 NSF fee. The interest rate’s not that fantastic, but if you can take care of it right away, it’s a much better option than paying a NSF fee.

There are some fees that you might incur when using the account, but they are not any higher than any other checking account. An overnight check will cost you $15.00, otherwise the mailed checks are free. There’s also a $25.00 fee for a stop payment on paper check, and a 2.00% fee to convert money to a foreign currency, but that’s pretty much it.

The account also features free bill pay service and is FDIC insured. Account holders also have a free help line they can call to get assistance with identity theft. Statements are sent electronically and there are a number of security guards in place to ensure that your account is secure. ING Direct even guarantees that you will not be liable from unauthorized purchases or transfers.

ING Direct also features an electronic savings account offering a 4.5% APY. You can read our full review of ING Direct’s Orange Savings Account and get a $25 bonus for opening a new account.

ING Direct’s Electronic Orange checking account won’t single handedly kill off paper checks, but it is a sign of things to come. There are some major costs associated with processing a huge number of paper checks, and some day they will be a thing of the past. ING Direct is moving customers in that direction and offering them some great features and competitive interest rates for doing so.



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