Capital One is buying ING Direct

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Bloomberg Report. CO is expected to sell the mortgages. This has huge implications for how the foreclosures / short sales of mortgages are handled, as ING always kept all mortgages it originated in it's own books.

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Capital One is probably similar.

grex23 (Jul. 01, 2011 @ 12:14a) |

Capital One buying ING...that won't affect INGdirect.com savers will it? I mean other than lower interest rate

okaythen (Sep. 27, 2011 @ 1:22p) |

grex23, that's two threads I've witnessed where you've basically derailed any coherent discussion with repeated nonsensi... (more)

donotdrinkPBR (Sep. 27, 2011 @ 2:17p) |

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That does not bode well for my online savings interest rate.

I'm pretty shocked that ING is worth $9 billion. I was a big fan/customer in the early days, but their low rates forced me to seek greener pastures long ago.

From article -- "ING Direct is one of the largest and most successful online deposit gatherers, with $82 billion of deposits and seven million customers that proved more loyal to the online bank than banking analysts and consultants had originally expected when internet banking emerged as a stand-alone banking strategy just over 10 years ago."

japaninator said:   That does not bode well for my online savings interest rate.

Don't be so sure. It looks like ING is currently at 1.00% APY. Capital One is at 1.15% APY for balances above $10,000 -- this is for DC, and its rates do vary by region, but you can easily check current rates on its website.

japaninator said:   That does not bode well for my online savings interest rate.

Capital One's Interest Rate is Higher right now I believe..

Darn - looks like I may have to find greener pastures if Capital One decides to get obnoxious with changes.

Thanks guys, I feel better now.

I wonder if they'll still allow multiple logins to have full access to one savings account. That's probably my favorite feature of ING Direct right now.

es4life said:   japaninator said:   That does not bode well for my online savings interest rate.Capital One's Interest Rate is Higher right now I believe..I think he's implying "less competition," but the post is ambiguous.

Paper checks with online checking at CO!

Anything special about that?

matt1 said:   Paper checks with online checking at CO!

faw169 said:   Anything special about that?

matt1 said:   Paper checks with online checking at CO!


Much more "green" than plastic checks.

I guess it's time for me to max out the free $ from ING and Capital One before they take away some of the free money offers. Gotta open checking, ira accounts at ING and savings at CO via costco. LOL then I might cancel and go to alliant/ally.

Too early to tell if this will be a negative change for current ING customers. In this extremely low interest rate environment the immediate change should be negligible, but if rates ever return to normal it will be interesting to see how competitive they will be. I don't expect much change. BTW, I have had accounts at both for many years and think they both have many good products.

Bummer, I'll miss the ING Direct referral $$$. Capital One only did that once in the last few years and it was capped at something like 5 referrals.

Will be interesting to see how Capital One integrates with the Cafe style that ING has.

The 2 companies have 2 different banking cultures and 2 completely different styles of banking.

To tell you the truth, ING Direct has given customers a very good online banking experience in the industry and had excellent CAFE's. It has always been one of the better run online institutions with a lot of marketting clout and was on the up and up. With Capital One merging with a real established Online banking firm like ING, I can see good things coming from this merger.

My concern is the rate structure and the tellers at Capital One Branches and how online integration will all play out.

Unlike Chase where these banks grew from physical branches, Capital One decided to merge with an Online Banking provider which did have some CAFE's around with their own ATM machines.

Also ING customers always had atm access to lots of machines with NO ATM FEES.

It is unclear if Capital One will just integrate the networks forcing everyone on Capital One ATM's and keeping the existing few ING Cafe ATM's or how they will work this in the future.

But I just hope this works out to the consumers advantage and provides something viable for consumers to choose Capital One over the others.

Capital One, National Association 4297 Virginia 990 88,893,265
ING Bank, fsb 35489 Delaware 1 77,431,828

The merger of these two banks adds huge marketshare to the bank combined in terms of total deposits.

Capital One has also said they will add new branches in areas where a lot of ING Direct customers reside as well.

From what it seems, Capital One will keep its existing online banking systems and migrate ING accounts over.

Net consumer benefit for existing Capital One depositors: Access to more branches especially in those regions where ING had a lot of existing customers.

I predict Capital One will open branches in more metropolitan areas now in markets Capital One hasn't been in before.

ING Cafe's exist right now in a few places and its unclear what Capital One will do with these.

But with more deposits comes a larger footprint and branching.

Hopefully with the increased customer base and the continued marketshare, they will improve customer service and add better online capabilities to their systems.

"I'm pretty shocked that ING is worth $9 billion."

Why would you be? The financials are well known.

Im just hoping existing Capital One account customers will see benefits and not net detriments. Usually when banks merge, its worse for the depositors.

I use to really hate on Capital One but after getting the Venture card and seeing how easy it was to use and redeem I decided to open up other various banking accounts such as the rewards checking and the money market account. The numerous logins to access different products is annoying but overall it's change how I feel about their product.

I agree with you. Capital One has turned into the prime bank of choice considering its decent interest rates, decent rewards on its credit cards.

Its merger with ING will give the bank access to cheap deposits which will add a huge asset base to the bank. The Chevy Chase integration was complete which added size and scope to the bank with new branches such as more ATMs across the nation and greater marketshare.

ING will do the same except expand Capital One's online presense and deposit base.

For the consumer side, the ING merger will mean a lot more online based deposits and they are keeping an ING member on the board as well. So I expect this deal to actually be a pro consumer deal. Capital One has been a rock solid bank while loads of other banks have been failing. It has offered customers decent rates of return.

It also has allowed very high deposit/withdrawl limits available online and provides interest next day.

Online banking had some flaws which were fixed and with the ING merger, it looks like Capital One wants in every way to keep its online banking up to snuff.

So yes, this merger looks good from all sides of the coin assuming they keep the higher Capital One Interest rates and the rate bonus. If they do, its a win win for existing ING Customers who will get a higher APY (and a rate bonus) as well as local branching.

Capital One is really turning into a superprime bank with a large network structure and this deal allows it to eclipse the size of its closest competitor with local branches, TDBank.

I remember the days when I was saying Capital One was a really good bank, yet people would argue saying the branch structure was smaller than Chase or the others which was true.

But now it looks as though this merger brings Capital One into the big boy range of banks in the top of the charts.

So all in all the ING merger looks like a win-win for customers and the bank.

Capital One has been moving on up. HSBC seems like its stuck in the rut right now and needs a merger.

Wouldn't be surprised to see Capital One turn the Los Angeles CAFE into a full fledged Capital One branch or add full services branches in that area for instance and add more branches in markets like California and others. They have stated they will open branches where they have significant customer bases and this includes some areas outside its traditional footprint.

On the other side of the coin though, its all profit for the banks and still is fractional reserve based banking. You only get paid APY if you deposit funds. Banks want to pay the least possible and take in the most profit possible.

So net benefit to the average consumer: Maybe a few more branches and perhaps Capital One focuses more on its internet and mobile banking assuming the merged bank doesn't play with the APY paid to consumers.

When Countrywide got merged with Bank Of America, I pulled funds out and sure enough Bank Of America sharply decreased the interest rate.

With the ING vs Capital One variance, the margin is minimal and Capital One still pays the Credit card bonus and I personally don't see this as ending. So I am hopeful this merger will make my Capital One experience better as time goes on.

hejustlaughs said:   I use to really hate on Capital One but after getting the Venture card and seeing how easy it was to use and redeem I decided to open up other various banking accounts such as the rewards checking and the money market account. The numerous logins to access different products is annoying but overall it's change how I feel about their product.

I just opened up a CapOne Checking/Savings and my Sony card transfered to them. Their website is quite annoying as it's seperate logins, even if you link accounts and it does some to be missing 'something'. But overall, the rates beat out a lot of the competitors.

Another downside, transfer times. I believe it's a 5 day hold time (still accrue interest though).

I have a mortgage with ING Direct which they won't refinance because I am underwater. I wonder what will be the effect of this on the mortgage.

Grex23; your posts read a lot more like a corporate shill's social marketing campaign than the comments of a true FatWalleter.
Just sayin'.

I had exactly one reaction to the news of this buyout: "Oh, sh*t".
Partially because of the uncertainty that follows such deals, and partially because I fear it will mean the end of yet another free checking account.

raspino said:   I have a mortgage with ING Direct which they won't refinance because I am underwater. I wonder what will be the effect of this on the mortgage.

Nothing. However, Captial One might be more willing to talk; but I doubt it.

Not a Shill and I presented both sides of the coin. Capital One has been in the highest percentage of the rate charts for awhile. But Banks suck in general and I prefer Gold bars myself.

Do I expect any significant changes for the Capital One side? Not Really. It will get some sort of ING influence but as to what extent, I don't know.

For ING side? Yes since they will integrate it into the Capital One website eventually and it will pick up Capital One's ATM network.

The top deposit marketshare figures for 2010 show Capital One taking a huge leap with this merger putting it with the big boy banks in a territory its never been at before. Capital One was originally a merger of smaller institutions and got larger eventually coming close on Citibank territory now in deposit marketshare.

Just analyzing it from the Capital One perspective with ING.

No other banks have announced significant acquisitions which greatly affect marketshare figures so far.

Yawn. Theres always another merger.

bombcar said:   raspino said:   I have a mortgage with ING Direct which they won't refinance because I am underwater. I wonder what will be the effect of this on the mortgage.

Nothing. However, Captial One might be more willing to talk; but I doubt it.
There will be changes. ING Direct holds the mortgages. After CO sells them, they will merely be a servicer, with the bag being held by someone else. Makes for a huge change

Three things about this deal:

- Capital One pays higher interest than ING (I hope they bring those rates to ING as I have accounts at both)

- If you use Costco, they have a Capital One account, but pay higher interest than Capital One directly

- Capital One does not offer a business savings account, but ING does.

"Capital One does not offer a business savings account, but ING does."

False. Capital One does business savings accounts on its commercial and small business websites.

ING also offers them as well. Other than sharebuilder and perhaps some differentiation in the mortgage business, the product lines are very similar all around.

Does Capital One allow you to open up multiple savings accounts easily? This might be a dumb question but I utilize this feature a lot to avoid the 6 ach limit per account.

How many do you need? You can apply seperately for each one. Between ING and Capital One they have loads of account options so yes you can have multiple different accounts with them.

Just apply online. They may need you to send in a signature card or something akin to that.

I hope the telephone transfer feature stays.

Does it really matter though? Put your funds in gold. Not the federal reserve system.

This deal is all profit for the banks which are just part of the fractional reserve banking system model anyways. Pull back on rates while sucking in huge profits off the funds.

End result to the consumer: A front end to the federal reserve system. Lower cost deposits for the bank means higher profit margins for the banks. With ING out of the picture, Capital One gets higher markshare, but will they keep Capital One's interest rates or ING's? But does it matter? Unless your a Capital One executive, its all rediculous and meaningless since no sane person with a large fortune on hand would keep lots of funds in a FDIC insured account at these firms with a "Corporate bank." which looks out for the executive management teams interests so they can fill their coffers, not their depositors interests.

Yes consumers have to convert to dollars to pay bills and can't use GOLD unfortunately to pay them back so ING/Capital One will likely have very high clout and a rather large customer base intact.

If you had a new concept, and Im not talking Bitcoin to pay back funds based on the gold standard to payees which was widely and universally accepted by merchants all over, it would be the best way to actually use gold to pay bills. But unfortunately e-gold wound up on shady pretenses. However the corrupt federal reserve system isn't better either.

My heart just dropped into my stomach! I just opened a new checking account with ING, in the hopes of avoiding monthly banking fees. I was with two smaller banks that were consumed by larger, greedy banks. I am so fed up with being persecuted for being poor. Why is it that Chase bank is legally allowed to charge you monthly fees if you don't have a daily average balance of $1500.00 or more in your checking account? Why is it that Wells Fargo can charge your unemployment debit card for every balance inquiry and transaction? The big banks are still in the business of raping the poor and struggling in this country! I just hope that the same changes don't occur with ING account holders, now that another big bank is buying them. I know that Capital One has high banking fees, just like Wells Fargo and Chase.

shawnrene said:   My heart just dropped into my stomach! I just opened a new checking account with ING, in the hopes of avoiding monthly banking fees. I was with two smaller banks that were consumed by larger, greedy banks. I am so fed up with being persecuted for being poor. Why is it that Chase bank is legally allowed to charge you monthly fees if you don't have a daily average balance of $1500.00 or more in your checking account? Why is it that Wells Fargo can charge your unemployment debit card for every balance inquiry and transaction? The big banks are still in the business of raping the poor and struggling in this country! I just hope that the same changes don't occur with ING account holders, now that another big bank is buying them. I know that Capital One has high banking fees, just like Wells Fargo and Chase.

What high banking fees are you talking about? I currently bank with Cap1 and don't pay anything for checking nor money market savings.

I don't see this as a negative for Cap One and ING. I see this as a positive for consumers with more branches for ING and Capital One customers if account is used appropriately.

I wonder what will happen to all the easy orange loans with the rate renewal every five years. I have one with ING and I remember the mortgage docs said rate renewals were not guaranteed and the requirements and costs can change at any time. CO may decide to charge more for rate renewal or have stricter requirements or discontinue it. The rate renewal is based on the rate the program offers at the time of the renewal not some index so if the program is discontinued what will the rate be based on. As OP has posted they are expected to sell the mortgage so this program might not stay. Or they might keep it with higher interest rates.

The loan is technically a balloon loan so it could be due after the 5 years with no renewal options. People would have to do a full refinance. Since they required 20-25% equity few would have trouble refinancing but some may if their home values drastically dropped.

Why would you want to take a mortgage product out and pay interest on it. Mortgages are "dirty paper." as we all learned with the sales of homes decreasing and more mortgages being underwater. Since when should I as a human be beholden to another human to issue out funds and then be able to charge me interest and make thousands of dollars in fees in the process.

On the flip side of the coin: Why would you want to put money in a low interest savings account for pennies on the dollar in a fractional reserve banking system.

Capital One/ING is about profit for Capital One. It isn't really pro consumer in that fashion.

SuperOcean said:   I guess it's time for me to max out the free $ from ING and Capital One before they take away some of the free money offers. Gotta open checking, ira accounts at ING and savings at CO via costco. LOL then I might cancel and go to alliant/ally.

They have a promotion called financial independence days starting July 1st.

Someone should start a thread.

capitalonedirect

shawnrene said:   My heart just dropped into my stomach! I just opened a new checking account with ING, in the hopes of avoiding monthly banking fees. I was with two smaller banks that were consumed by larger, greedy banks. I am so fed up with being persecuted for being poor. Why is it that Chase bank is legally allowed to charge you monthly fees if you don't have a daily average balance of $1500.00 or more in your checking account? Why is it that Wells Fargo can charge your unemployment debit card for every balance inquiry and transaction? The big banks are still in the business of raping the poor and struggling in this country! I just hope that the same changes don't occur with ING account holders, now that another big bank is buying them. I know that Capital One has high banking fees, just like Wells Fargo and Chase.

Go to a credit union, I like Pentagon Federal a lot, but there are otehr options. Even restricted pool CUs generally have a back door association. (Penfed has American Family which takes a small fee to join, then you qualify for membership) I can't remember the last time any of the three CUs that I have a membership in have charged me any kind of fee. Usually you have a small required balance in a savings account to maintain, which gets interst -- its $35 for Penfed -- this is due to how Federal credit unions are managed. That deposit represents your "share" of ownership in the CU.

Also, there are a lot of free accounts out there that just require a direct deposit. I have one of those with Bank of America that recieves a small amount every payday from my check. Just enough to keep it free, and its useful to have a local account for deposits.

Good luck!

Skipping 7 Messages...
grex23, that's two threads I've witnessed where you've basically derailed any coherent discussion with repeated nonsensical blabber. You've earned spot #2 on my FW ignore list, goodbye!



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