Difference between ING Direct and HSBC Direct
Everyone wants to save and grow money, but there are of course a thousand and one obstacles to doing so. Some of them are surmountable of course, and others are more difficult. Regardless of the obstacles to saving however, the chance to maintain an account online should make things considerably easier, and two of the most popular options for doing this are ING Direct and HSBC Direct. Which one is easier to navigate? Let's see!
Interest Rate
Both ING Direct and HSBC Direct offer you the chance to earn money simply by placing money into a savings account. The funds then earn an annual rate, the amount of which is different for each service. HSBC Direct in early 2010 offered a 3.25% APY, while ING Direct offered a slightly lower rate at 3.00% APY. This gives HSBC Direct a slight advantage over ING Direct.
Fees And Minimum Balance Requirements
ING direct and HSBC direct do not have a minimum balance requirement for opening savings account. This means that you can have an account with either service for as little as $1 if you so wish. If you want to open a checking account though, things are slightly different. With HSBC Direct, you won't actually be given a checking account at the bank, and instead will utilize your own existing checking account, even if it is with another bank. ING Direct isn't quite as straightforward in this regard, although it seems that the bank will allow you to use your existing checking account as well.
Access
Access to your account is quite easy with both ING Direct and HSBC Direct, whether you want to deposit or withdraw funds. With HSBC, you can use anyone of the bank’s ATMs for transactions that link to your account. ING Direct on the other hand doesn't provide ATM access for withdrawals, and instead transfers funds from your account, allowing you to perform debit or check transactions. Even if you do not have a checking account with ING Direct, the company will provide you with a link to the account that you deposited money into, allowing you to access the funds. ING Direct also offers an automatic saving plan that allows you to transfer money automatically into your savings account, giving you the option to specify the amount of funds and frequency of transferred as well. At the time of this writing, HSBC does not offer a similar automatic savings plan.
Summary
ING direct
- Offers a slightly lower rate at 3.00% APY in 2010
- Do not have a minimum balance requirement for opening savings account
- Utilizes your existing checking account
HSBC direct
- Offers a higher rate at 3.25% APY in 2010
- Does not have a minimum balance requirement for opening savings account
- Utilizes your existing checking account
