Customers of ING Direct are in for an unwelcome surprise on their next statement. The online bank has decided to raise their overdraft line of credit to 11.25 percent.
ING Direct has already begun the emailing process, sending out notifications to customers to warn them of account changes to the Electric Orange Agreement.
Electric Orange Fee Changes
ING Direct operates differently from most banks when it comes to charging overdraft fees in the sense that they do not have a set fee you have to pay when money is over-drafted. Instead, they have something called an overdraft line of credit, which works as a loan with an APR when you overdraft.
The change has already been made in their Electric Orange Agreement, as seen in the chart shown below. The 11.25% APR is a 4% increase from the previous rate of 7.25%. According to the email sent out to customers they can expect to see the change after May 15, 2011.
Although this is quite a significant increase, there are still big benefits that come with the Overdraft Line of Credit from ING Direct. Typically other banks charge For example, if you borrow $100 for 10 days, it will end up costing you $0.31 (previously $0.20) when compared to other overdraft fees this is a great value.
To see what kind of fees you would be charged with their Overdraft Line of Credit agreement checkout the Electric Orange Overdraft Calculator. NOTE: As of March 22, 2011 this calculator is still using the 7.25% APR, check back after May 15, 2011 to see the new calculations.