In the world of online checking account wars, three gladiators are constantly striving for your business, Perkstreet, ING Direct, and Ally Bank. Each offers many free services for customers but they all have distinct advantages. All offer free accounts and all are FDIC insured up to the current maximum of $250,000.
Perkstreet
One of the only “rewards” checking accounts, Perkstreet offers customers multiple reward options for simply using your debit card. Customers can choose from cash back, music downloads or coffee.
Customers can easily earn $600 in cash back each year without any changes in spending habits. That means you can keep the majority of your cash reserves earning bigger interest rates than those offered on other checking accounts and STILL earn cash back rewards. So put your money into an ING Direct Savings Account or an Ally Bank CD and use PerkStreet to conduct your everyday business.
How to make deposits with Perkstreet:
- Regular mail: Using a postage-paid envelopes.
- Free overnight delivery: Send your checks overnight for free from 3,400 UPS Stores and Mailboxes Etc. locations nationwide (get a tracking number to ensure delivery).
- Direct deposit: Sign up for direct deposit with your employer and have all or a portion of your paycheck deposited into your account automatically.
- Online transfers: Move money easily between your PerkStreet account and outside accounts.
- MoneyGram® ExpressPayment: Deposit cash free at 18,000 locations nationwide, including Wal-Mart stores. You’ll need some specific information from Perkstreet to use this deposit method.
How to withdraw money
You can withdraw money without a charge at one of 37,000 ATMs within the STARsf® surcharge-free network or at any merchant that offers cash back with purchases such as grocery stores or department stores like Walmart or Target. You may also use ATMs outside of the network but you’ll pay a $2 fee plus any fee the ATM owner may charge.
Click here to open your Perkstreet checking account today!
ING Direct Electric Orange
Electric Orange is sort of a strange name but that’s what ING calls their checking account. ING’s biggest claim to fame is that they have been involved in the online banking world for a long, long time and instead of paying rewards, they pay interest. Depending on how much you have on deposit, you can earn more in interest with ING than you do in most traditional grounded bank savings accounts! Since rates change frequently check out ING Direct’s website for rate details.
Like Perkstreet, ING has a massive ATM network and very similar ways to deposit money.
How do I make deposits into my Electric Orange checking?
You can make deposits into your Electric Orange from another ING DIRECT account or a linked checking account one of the following ways:
- Set up Direct Deposit
- Sign in to your account 24/7 at ingdirect.com and click on the ‘Transfer Money’ tab.
- Call their Interactive Phone Service with 24/7 access.
- Mail a check for deposit.
How do I withdraw money from my Electric Orange checking?
You have several options:
- Use your Electric Orange Debit Card anywhere MasterCard is accepted.
- Access cash for free at over 35,000 ATMs with your Card; or from merchants that allow cash back as a part of a PIN-based purchase.
- Get a cash advance from a participating local bank using your Card for up to $5,000. Keep in mind the bank may have a lower withdrawal limit than ING DIRECT.
Click here to open your ING Direct Electric Orange checking account today!
Ally Bank
Ally Bank also offers interest on your balance rather than a rewards program. A few of the details on Ally Bank’s Interest Checking account:
- $0 monthly fee
- $0 to open and no minimum balance – you can open it today and begin using it when you want
- Free checks
- No ATM fees at any ATM
- Variable rate account where balances $15,000 or more get an even higher rate
Ally even has a nifty little setup that shows you how much interest you’ll earn based on your average daily balance. Plus Ally’s Interest Checking account has a great safety feature called Overdraft Transfer Service. Simply link an Ally Online Savings or Money Market account to your Interest Checking account. If you exceed your checking balance, they will automatically transfer available funds from your savings account to cover the transaction(s) – all at no charge to you. Other banks may charge you for this Overdraft Transfer Service.
How do I make deposits into my Ally Bank checking account?
- Use eCheck Deposit (being rolled out in phases), simply transmitting your checks to deposit.
- Send a check using free postage-paid envelopes available through Online Banking
- Move funds online between Ally accounts for free
- Make free online transfers between your Ally account and your accounts at other banks
- Set up free Direct Deposit for your paycheck or Social Security check
- Use a wire transfer — we won’t charge you to wire funds in, but check with your other bank for any fees they may charge to wire funds out
How to withdraw money from my Ally Bank checking account?
That’s easy. Seriously. You can get money from any ATM nationwide and you won’t be charged. And if other banks charge you, Ally will reimburse you. Guess how many ATM’s there are …
- More than 400,000 ATM locations
- Use your debit card and get cash with your purchases
Click here to open your Ally Bank Interest Checking account today!
So which one is better?
Honestly, I’m going to tip my hat to Perkstreet. ING and Ally bank both offer substantial opportunities to earn interest on your checking account balance, but the highest rates are reserved from someone with 6 figures in their account. To me, anyone who keeps that kind of cash in a checking account is insane.
At 1.15%, that customer is only earning $1,150 per year in interest but for a Perkstreet customer who runs everything through his or her checking account can earn almost that much with only $50,000 in purchases and expenses put on their debit MasterCard (assuming 2% cash back rewards).
So for me Perkstreet wins!
About the author
If you enjoyed what you just read and would like to get FREE email updates with the freshest articles from The Wisdom Journal delivered right to your inbox, subscribe today! It's ridiculously easy and you can unsubscribe at any time. Since your email address is never sold or abused, you can subscribe with confidence, PLUS you'll get free reports/guides/eBooks, subscriber only benefits, and other perks.
{ 12 comments }
love my ing electric orange but i think your right, cash back beats interest
I assume you’re located in the USA right?
Here in Canada one of our national grocery chains has their own bank now, PC Financial. I’d recommend any Canadians check it out – like their American counterparts above, it’s fee-less, free cheques, free ATM use (at CIBC machines), the whole nine yards. Definitely recommended.
Any cash back programs or interest on the account?
The one thing I don’t like about Ally is they perform a “hard pull” on your credit report and it lowers your credit score as a result.
All the more reason to go with PerkStreet!
I have both ING and Ally but have never used PerkStreet. I love ING and I have been with them a long time and the Electric Checking is my main checking account. The benefits of PerkStreet are certainly compelling but I do not think I will be adding a new checking account just yet.
Just keep perk street in mind when the full transition ING is going through, they just got bought by Capital One. I’m considering making the switch/addition.
Im going to miss ING though.
I have used ING in the past but have held and still currently do hold an account with Ally. They’re customer service is excellent and I like that I earn interest on cash sitting in the account without having to use my debit card or anything.
not ING Direct.
changes their rates all the time, after you’re duped in they will try to trick you …
ally on the other hand is new and well financed… if you are in BC go with Coast Capital… great products, great rates, great service… just stay away from ING Direct, don’t let the cozzy perky orange fool you xP
As someone who has accounts at all three banks, I say Perkstreet! Their cash back rewards are second to none for a checking account. While the accounts with ING and Ally are great as well, I just happen to prefer the rewards at Perkstreet, as well as the great customer service I’ve gotten so far.
ING Direct had great rates back before they had much competition, but not any more. This seems counter-intuitive. Also, I am not impressed with their customer service representatives; they tend to get flustered and snappy when your question is not on their FAQ script. My sister tells me Ally provides great customer service. Besides, Ally makes depositing checks and accessing money so much easier. I’m glad to hear about a third option for best online banks: PerkStreet.
I have accounts at both Perkstreet and Ally. Up until this month I was happy with both but REALLY happy with Perkstreet. I am a big debit card user and the cash rewards for me are better than any interest I would earn in my checking account. Also, the ability to overnight checks for free is awesome and has so far worked perfectly.