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CIT Saving VS ING Saving

CIT Saving VS ING Saving

It’s a showdown!

A couple of months ago, I switched our online savings account from ING to CIT to take advantage of the much higher interest rate from CIT Bank. Currently CIT Saving pays 40% higher interest than ING Saving and that’s a big difference. Well, it sounds like a big difference, but it’s really only 0.3%. I have been with ING for many years now and it’s a bigger change than I thought to switch over.

Current rate – January 7, 2013. You  can sign up with one of these banks by clicking through their banners in the first column below.

Institution APY Minimum Deposit Misc 1 year of interest on $50,000
 best saving account to stash $50,000 1.00% $25,000 $502.30
 best saving account to stash $50,000 0.95% $0 $477.26
 best saving account to stash $50,000 0.90% $100 $10 outgoing wire transfer fee. $452.03
 best saving account to stash $50,000 0.75% $1 $376.29

ING No More

As some of you may know, Capital One recently acquired ING Direct USA. ING Direct will be renamed Capital One 360 early 2013 and the lovely signature orange color will be gone. 🙁 Check out their new logo below. Capital One 360 will also revamp the whole product line and will most likely lower interest rate further.


The new logo is quite bland.

ING’s website was easy to use and I never had any problem with it. Over the past 10 years I have used it on and off, I never had to call anyone and that’s the way I like it. It was easy to link new accounts online, initiate electronic transfers, and keep tabs of my money. ING was one of easiest banking sites to use on the internet and I hope Capital One 360 will keep everything the same. I give ING 4 out of 5 stars overall. If their interest rate was higher, I’d give them 5 stars.


The obvious big advantage of the CIT online savings account is the higher interest rate. However, their site is less polish, isn’t as easy to use, and I had to jump through a few more hoops than I was used to at ING.

Initial Deposit and First Wire Transfer

When I opened a CIT saving account, I had to input ING’s routing number and account number to do the initial deposit. They made 2 small transactions and I noted the amount and verified the account. This is normal and I expected it. However, after a couple of weeks, I wanted to wire transfer more money from ING and I had to jump through this hoop again. Why did I have to do this? Why can’t they save the info from the initial deposit?


It’s the end of the year and I wanted to withdraw $10,000 to give a boost to Baby RB40’s 529 college saving account. I went into the transfer screen at CIT and I found that I couldn’t do it. I called CIT and they said I have to activate outbound transfer. A couple of days later, I got a message in my CIT account and they wanted my license and the first page of the latest statement from the accounts to be linked. These really are  a lot of hoops to jump though. I never had to do any of this when I was with ING.

Call 855-GoBankCIT to activate an outbound transfer.

Withdrawal limit

OK, so I sent them the documents they requested and now I’m ready to transfer $10,000 my account. Now I found that they have a default daily withdrawal limit of $5,000. I’ll have to call them again to lift this limit. At this point, I’m trying hard to refrain from swearing.

*Update* I called and they told me they won’t lift the transfer limit until the account is open for 6 months or so. Meanwhile, if I need to make a big withdrawal, I can call and set it up.


I’m going to give CIT 2 stars out of 5. These hoops they have me jumping through aren’t that much problem in the grand scheme of things, but ING was just so much easier. Anyway, hopefully after this call to lift the withdrawal limit, I’ll be done jumping. Overall, I like ING better, but the rate difference is just too big. If they give me any more hassle, I’m going to have to seriously consider Ally bank as an alternative.

Who are you banking with today? Are you happy with the customer service and interest rate? If you are with Ally Bank, what do you think?

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Joe started Retire by 40 in 2010 to figure out how to retire early. He spent 16 years working in computer design and enjoyed the technical work immensely. However, he hated the corporate BS. He left his engineering career behind to become a stay-at-home dad/blogger at 38. At Retire by 40, Joe focuses on financial independence, early retirement, investing, saving, and passive income.

For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.

Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.
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{ 12 comments… add one }
  • Greg December 3, 2012, 6:59 am

    Since you ask…

    Having used both, I have found Ally Bank to be superior to ING Direct. Ally has consistently high rates, almost always higher than ING. Ally’s website is just as good as ING’s, and you can use a real password instead of a short number. You can link open accounts, link external accounts, initiate transfers, and schedule transfers all online. Transfers usually take about 2 business days for external accounts and are instant between Ally accounts. The penalty for breaking a CD early is only 60 days of interest. Phone support is available 24/7 and there is usually little to no hold time. The reps are helpful, friendly, and domestic. There are no fees for normal activity. I did have to pay a fee for an outgoing wire. You can deposit checks by mail. Ally will send you addressed, postage paid envelopes on request.

    Complaints: Their rates aren’t the absolute highest. I had some trouble getting an account open; I had to call and (I can’t remember) maybe fax something in. They don’t allow certain characters in passwords. They don’t provide OFX downloads for financial software to automatically grab. You have to call to break CD’s early.

    I haven’t tried it yet, but they also have a well rated iOS app that supposedly allows for camera-based deposits.

    • retirebyforty December 3, 2012, 8:33 am

      Thanks for your input. I’ll try Ally soon so I can compare them.

  • Leigh December 3, 2012, 7:12 am

    I switched to Ally a year or two ago from ING after being with ING for many years like you. I went because I wanted to open some CDs and their rates were better. My main complaint with them is that they send me paper mail after I open a new account, but I guess that’s not the end of the world. Other than that, I’ve had pretty good experiences with them and would definitely recommend them!

  • Kurt @ Money Counselor December 3, 2012, 9:47 am

    Very timely piece for me Joe, as I’m looking to open a new online account. I’ve been using EverBank for year–it’s fine, but it hasn’t kept up with the rates the CITs of the world are paying.

    • retirebyforty December 3, 2012, 1:45 pm

      CIT has the highest rate right now, but Ally bank is also competitive. I’m not sure what happened to EverBank, they were always competitive before.

  • Ian December 3, 2012, 10:15 am

    My girlfriend recently switched over to Ally and so far she has had a pretty good experience. I planned on seeing how she liked it then I will probably switch as well.

    • retirebyforty December 3, 2012, 1:46 pm

      Thanks for the input. I’ll keep Ally in mind if I need to change.

  • Tiffany December 3, 2012, 11:48 am

    I have really liked ING and our savings is less than $20k right now so the increase in interest is not worth it (for us) to change. But, if we had $50k+ there, we would consider it.

    • retirebyforty December 3, 2012, 1:47 pm

      How about Ally bank? I wonder if Capital one will lower the rates further.

  • Gen Y Finance Journey December 3, 2012, 2:35 pm

    Ally recently added mobile check deposit, so I now have no complaints about them anymore! I absolutely hate their online check deposit system (too frequently it tells you there’s something wrong with your check image even though it meets their stated requirements), but I just tried out their mobile check deposit for the first time and it went incredibly smoothly!

  • Paul N December 3, 2012, 3:00 pm

    Just wondering why you would keep such a large amount of cash earning 1.00% interest? I’m in Canada, so I am not sure if you have the equivelent of a no load, no penalty for withdrawls after 30 days, Monthly income fund that pays you a monthly cash distribution? They are usually pretty conservative type funds. (Some people call them closet index funds with a bond component). Wouldn’t that be something to consider instead.

    • retirebyforty December 4, 2012, 10:06 pm

      We wanted to keep a large cash cushion for a couple of years after I retire. This will give us a chance to figure out if I can stay retired. We’ll reduce the cash saving in 2014 if things look good.

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