INGDirect Sub-Accounts Savings

I talked with Mr. A the other morning about using his INGDirect account to hold our budgeted savings. He asked why would I want to use ING rather than our regular savings, and he also wondered since they are only available online, what are their interest rates. He said if they don’t have the overhead of a brick and mortar building, they should be able to make up for it in the interest rates.

I took a look this afternoon.  Mr. A has an account at INGDirect. I opened it to make the $25 for opening the account back in March 2008. That account shows that the interest rate dropped in October 2008 to 2.75%.  It is now at 1.30%.

I had a hard time deciphering the interest we’re getting from Wells Fargo, so I finally called and asked. It’s much less than 1%.  It’s .15%.

Right now we have around $1800 set aside for future obligations, including estimated taxes, auto insurance, tires, AAA, and website hosting. Obviously this amount fluctuates, since we are adding or removing amounts each month.

I told Mr. A the reason I have been thinking about using INGDirect for our budgeted savings is because we can set up sub-accounts, and then it would be easier to keep the amounts separate. I mean, I can continue as I have been and keep track in a spreadsheet. But I read on a blog somewhere recently that it is a lot nicer to have the money separated. I told Mr. A I don’t know of any other bank that allows these sub-accounts.

Mr. A was also concerned about what would happen is “something” happened and we couldn’t access our money from an Internet account. I told him I thought we would have as much trouble getting our money from our brick and mortar bank if “something” happened.

I told him I *do* like banking with our brick and mortar bank, simply because we can go in and take care of problems in person. For example, I have Mr. A’s unsecured credit card set up to withdraw automatically.  I like to check online and see that the payments were made on all auto-payments, just to ease my mind. A card might expire, or be rejected for whatever reason.

Speaking of problems, several months ago I’d logged into Mr. A’s account, well, I tried to log in and I’d forgotten which of his passwords I’d used, and I locked myself out of his account.  Mr. A really doesn’t like dealing with all this banking stuff, so it’s phenomenally easier to just walk into the bank, producing identification, and giving his permission for me to resolve the issue, than trying to make a phone call.

Mr. A also brought up what would happen if something happened to me and I couldn’t access the bank information?  That’s a good question. I had intended to create, and keep updated an “Alien Abduction Manual” as Mrs. Micah discussed on her blog back in April 2008. Indeed, I do have the thing started, but I really need to update it!  Perhaps this will be a good resolution for the coming New Year.

I was recently at INGDirect, trying to figure out how to get that $50 for Mr. A if we invested in Sharebuilder.  I learned at that time that we can’t have a joint account, unless I have my own account with INGDirect, so I will need to open an account before I get started with the sub-savings accounts. I had one a few years ago, but closed it because I wasn’t using it, so I’m not eligible for the bonus.

I couldn’t quite figure out Sharebuilder, but I did open a Sharebuilder account for Mr. A.  I thought we had to buy a stock for $4, but now I’m at a loss of how to proceed.  Is it four dollars a month?  Are there fees?  I just couldn’t tell. I will probably lose out on the “bonus” since I don’t know what to do next.

Anyone know of a good post to guide me on using Sharebuilder? Or maybe you know, please share in the comments. Thanks!

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10 comments to INGDirect Sub-Accounts Savings

  • I have quite a few sub accounts with ING. They are fantastic! I have no idea about ShareBuilder though! 🙁

    [Reply]

    Mrs. Accountability Reply:

    Mrs. Money: I still haven’t opened our sub-accounts! And I think I only have until the end of the year to do the Sharebuilder $4 stock purchase. I need to get busy and do some research! Thanks for your comment! Mrs. A

    [Reply]

  • Dave

    if you call ING for any reason, you do not get a phone tree, you get a person. it’s better than walking into a building and waiting in line!

    [Reply]

    Mrs. Accountability Reply:

    Dave: That is great to know about ING Direct! I think that will also help to reassure Mr. A, so thanks for letting me know! Thanks for stopping by and commenting! Mrs. A

    [Reply]

  • I’ve heard about ING and the sub-accounts. I’ll be interested to know if you get it all figured out and what you think about it. I currently have a savings account online with Capital One and they don’t have a way to create sub-accounts.

    P.S. I love the “Alien Abduction Manual”, I created one for my husband but didn’t give it quite such a creative name!

    [Reply]

    Mrs. Accountability Reply:

    Little House: I will be sure to make an update post once I get it figured out! Good for you for having your “Alien Abduction Manual” all put together. LOL, it was Mrs. Micah’s idea, I think. Anyway, I agree, cute name for it! Thank you for stopping by and commenting! I appreciate your input! OH! Do you have an account with them? They are offering $25 bonus for opening a savings account. You do have to put $250 in to get the bonus, but you can remove the money within a couple of weeks. If you are interested in opening an account, I’d love it if you use my referral link. I will get $10 thank you bonus. Will keep you posted! Mrs. A

    [Reply]

  • The $4 is per trade but they only do it if you have money in the account to cover it. So if you decide to send $20 every month to Sharebuilder then you can buy $16 worth of a stock since they keep $4 as a trading fee.

    So you set it up how you want. I have Sharebuilder withdraw $20 a month but I buy $5 of one stock and $5 of another. So there is always money set up for my trades and money for the stocks. If I only sent in $10 then they would buy $5 of the first one, take their $4 cut and not buy the second one because there would not be enough to cover the stock and the fee.

    Poke around in your sharebuilder account and you will see how the money is allocated after you choose your options. It does not overdraft you or anything..if the money for the stock and the fee are available it will do your transaction if not then it waits until the next trading cycle (mine is monthly but they do it every Tuesday.) Hope this helps.

    [Reply]

    Mrs. Accountability Reply:

    Lulu, sorry this comment of yours got stuck in spam. Thank you for the information, but I’m still a little confused. Can I just do one stock and never do anymore? Or do I have to do something every month? Would you consider writing a post for your blog or maybe even a guest post for my blog with more information on this? Thanks! Mrs. A

    [Reply]

  • […] now there is just over $1800 in the account.  This is the money I’d like to move over to ING Direct into sub-accounts.  I like knowing this money is sitting here waiting to be spent when the bill […]

  • […] I started the process to get that in place, since I wanted to be able to push money to ING Direct where I have several savings sub-accounts. […]

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