By  Mon Jun 20, 2011

What the Capital One-ING Direct Deal Means For Customers

(UPDATE: ING Direct has become Capital One 360, see what changed.)

Loyal savers with orange-themed ING Direct are fretting over the fate of their accounts following the news that Capital One has bought their banks.

In an investor presentation following confirmation that Capital One (NYSE: COF) is the buyer in the sale of ING Direct USA, ING Direct deposit customers were found to be young, exceptionally loyal, and avid supporters of the franchise.

In reality, actual customer sentiment conflicts with that research as many ING Direct customers on Twitter have said that they will be transferring money out of their accounts – a premature move to a deal that is set to close late 2011 to early 2012.

Still in the early stages of the deal, no final decisions have been made on the future of ING Direct customers but some speculative changes are expected.

Branding and Marketing

ING Direct is the legendary pioneer in online banking – a reputable name among savers. That is likely to go away.

ING will allow a one-year transitional use of the “ING Direct” trademark.

“ING Direct USA will retain brand attributes such as the ‘orange ball’. ING will allow a one-year transitional use of the ‘ING Direct’ trademark,” as stated in an ING press release. While Capital One has online-only counterparts of some of its deposit products, they still fall under Capital One Bank. Capital One may consolidate these products under the ING Direct platform, but the name definitely will not stick.

Meanwhile, Capital One will ramp up its marketing strategy by promoting its successful line of credit cards and auto loans to ING Direct customers. “There are potential additional synergies from cross-selling the ShareBuilder online brokerage products to Capital One customers and select Capital One products to ING Direct customers,” as stated in a Capital One press release.

Customer Accounts

The monumental question is: what happens to customer accounts?

In the near term, ING Direct customers will see no major changes to their banking routine until the sale is closed. Even if it is completed in early 2012, at the latest, ING Direct customers may not experience significant changes in the ensuing months.

The purchase will make Capital One the fifth largest bank in the U.S. by deposits. The addition of such a large number of ING Direct deposits is likely to result in a decrease in interest rates for all of their customers. This tends to happen as banks obtain more deposits as seen in the interest rates at the nation’s four banking giants – Bank of America, Wells Fargo, Chase, and Citibank.

Capital One’s InterestPlus Online Savings and Interest Online Checking accounts are the equivalent of ING Direct’s popular Orange Savings and Electric Orange Checking accounts, but Capital One offers these online-only accounts to customers who do not reside within close range of a Capital One Bank branch. It is up in air on how these accounts, their services, and their features will be integrated.

Mobile Technology

On the consumer mobile banking front, ING Direct may lend a boost to Capital One’s mobile technology strategy.

Currently, ING Direct has native applications for iPhone, Android, and Blackberry devices while highly anticipated scanner-based and mobile check deposit features are arriving very soon. Capital One only has a native iPhone app but it recently partnered with Mitek Systems to develop mobile remote deposit capture.

It is hard to imagine Capital One not keeping these mobile services and extending these consumer-friendly amenities to its current customers.

Jumping Ship

No one knows how this deal will play out for the banks and their customers.

While Capital One intends on preserving the foundation that has made ING Direct so successful, it has slipped on customer satisfaction in the credit card department, which is a supposed preview of what’s to come for transferring ING Direct customers.

But, before ING Direct customers join in on a large-scale migration, it may be worth waiting to see the changes to be implemented by Capital One.

In the meantime, it doesn’t hurt to begin researching alternatives in the event that Capital One no longer serves the needs of former ING Direct customers.

If you are an ING Direct customers, how do feel about become a Capital One customer? Will you be moving your money?

In the Article

Subscribe to our Newsletters

 

Add Your 2 Cents

  • Anonymous

    I looked around at the alternatives, and ING appears to be the best deal in checking available for now without a minimum deposit. Unless something like BankSimple ends up being a worthy replacement, I’m going to stick around to see what happens. I’m going to be taking away permission for them to market other products to me though. I liked that, for the most part, ING seemed to like to keep its customers out of debt rather than put them in it.

    • http://www.mybanktracker.com/ MyBankTracker.com

      Both Ally Bank and FNBO Direct offer competitive interest rates comparable to ING Direct with no minimums. Capital One also offers a 0.75% APY internet checking to customers who live in states with no branches. 

    • http://profiles.google.com/amadigan Andrew Madigan

      Ally’s checking pays .5% with no minimum deposit and no fees. ING’s checking doesn’t beat them unless you have at least $50,000 in the account (otherwise ING pays .25%, half of Ally).

      Also, only certain ATMs are free with ING, while all are free with Ally. If you have $50,000 then the rate at ING is 1.1%, versus .9% at Ally.

      • Anonymous

        The one life-saving feature that will keep me with ING until they pry it from my cold, dead hands: their fee-free overdraft line of credit. You normally have to carry much larger balances to get this benefit from a large bank. It has saved me too much money and hassle to worry about a fraction of a percent in interest on a small balance. If I wanted interest I’d get a savings account!

    • http://profiles.google.com/amadigan Andrew Madigan

      Ally’s checking pays .5% with no minimum deposit and no fees. ING’s checking doesn’t beat them unless you have at least $50,000 in the account (otherwise ING pays .25%, half of Ally).

      Also, only certain ATMs are free with ING, while all are free with Ally. If you have $50,000 then the rate at ING is 1.1%, versus .9% at Ally.

  • nydame

    Capital One is notorious as being among the most rapacious credit card companies in existence.  It is well-known that they routinely lie to and cheat their customers, so I really have to question the sanity of any ING Direct customer who plans to stay.

  • Julie

    VERY ANGRY!!!!! Definitely going to look for other banks :(

  • guest

    perkstreet…. ally…. dont let them in your wallet

  • Rbc303

    guest, what do you mean don’t let them in your wallet, Capital one or Perkstreet and Ally?>?

  • Sorry to hear this, Guest

    Capitol One was a nightmare that took YEARS to pay off and get over.  I will move my ING Direct banking back to the Credit Union.  The BIG FIVE Banks are ruthless, excessive in their fees, and could care less about anything but profit for their bonuses.  Sorry to see you go-ING.

  • Blackjackg37

    Decision already made. ING has lost a customer. I refuse to do business with Capital One.

  • Damackay56

    …having had dealings with Capital One in the past personally I will have to seriously consider leaving them as my bank. The beauty of ING Direct has always been that they weren’t like the banks in the US and not associated with any of our country’s major banks. On a larger scale Capital One has had so many credit card customer issues it’s laughable! This is not a good deal for ING Direct customers, start researching for a new bank.

  • Jsmith1833

    If they make any of the changes that they are known for, if the fees become predatory in any way. I will transfer all of my accounts.I’m going to wait it out and see. Capital One is not known for being honest, or efficient.

  • Red

    I’ll be moving to either PerkStreet or Ally later this year. I have no interest in banking with Capital One even if the service stays the same. 

  • arthur king

    Capital One is a terrible Company but I will wait and see but expect they will change something about the ING model and at that time I will bail.

  • Velvet74

    As a long term ING customer I’m really looking forward to being able to write paper checks.  That has been the most annoying thing and kept me from making ING my only checking account.  I have to be able to pay people by check and they expect the check then and there.  I can’t send it to them later.

  • Alan

    I also will not deal with Capital One.  I will move my accounts, probably to HSBC.  Does anyone have any input on HSBC online banking ?  At least the Chinese should be strong.

    • Chris

      HSBC is closing customer accounts in the USA. I have an HSBC account in the UK for 20 years – brilliant. The problem seems to be that European Banks have been told to divest their links to USA. Don’t ask me why……..

    • Chris

      HSBC is closing customer accounts in the USA. I have an HSBC account in the UK for 20 years – brilliant. The problem seems to be that European Banks have been told to divest their links to USA. Don’t ask me why……..

  • Mvthom1

    I will most likely be moving my money. Can not imagine the same level of customers service and ease of use with Capital One.

  • Elcid89

    If they change anything about how ING operates, I’m gone just as soon as I can find an acceptable alternative.  I’ll be taking my checking acct, 3 savings accts, brokerage account and IRA with me. Take heed Capital One.

    • Elcid89

      I decided not to wait to be disappointed. As of this past Friday, my ING accounts have been closed and moved to PNC. I am currently still waiting for Sharebuilder to complete the transfer of my brokerage account and IRA to another broker. Sharebuilder isn’t an ACATS broker, so who knows how long that will take.

      Still, it feels good to have said “no thank you” to Capital One. 

  • MJ

    I’m waiting to see what changes but I will most likely move to another bank. Don’t like the history I’ve had with Capital One

  • MB

    Will likely take my money and run, Capital One is just like the other national banks. They take a lot and give a little. Currently researching my options.

  • http://www.facebook.com/steven.dorsey.31 Steven Dorsey

    I really enjoyed the lax use of Overdraft as well as the high interest rates. If Capital One can keep blazing on the path ING created then I will stay but I already have one foot out of the door based on what I read below.

    Are their any other banks that are similar to ING?

  • BeenThere – Thanks Crap1

    Hmm, had a credit line with Cap1, but if I deposited a check while using it, got a $35 fee, then got a $50 fee for disputing it, and they charges a $35 fee for each time I DEPOSITED MONEY becuase they claimed to choose to charge against uncleared checks rather than my credit line. After $750 in fees that 1st month (which they fought me on for months), I know what Crap1 is, and I’ll be closing all my (formerly Ing) accounts.

  • xmc

    i LOVED ING but have absolutely NO faith in Capital One. Transferring my money as soon as i can.