Offer for the Day

ING Logo

Just got an offer in the mail from ING Direct, which appears to be a branch of ING, which is some kind of big bank thing. The deal is they will send me $25 if I open a savings account with them. Well, okay, except I don't have much use for savings accounts because they don't pay very much interest. How little interest is ING paying? 0.85%. That's zero point eight five percent. That means if you give them $10,000 and let it sit there for a year, they will pay you $85. Well, good golly Miss Molly, we could buy a tank of gas for that kind of money!

Christ on a crutch, what kind of idiot do they think I am? (OK, there is some evidence that they are correct in their estimation, but still, I'm going to argue about it.) According to the government inflation is running about 3% a year. According to me it's more like 6%. But stick with the government numbers. If inflation is running at 3% and ING is paying 0.85%, then you are losing 2.15% on your money every year. That's like paying ING $215 to hold onto your $10,000.

Some people will sign up for this offer. It is better than stuffing your money under your mattress, but not by much. What I don't understand is why someone who has managed to save some money would put their money in a scheme with such dismal prospects.

Update January 2021 replaced missing image.