ING vs. HSBC

Even thought HSBC Direct has a 5.05% APY right now, I'm still sticking to ING Direct. My main reason is the sub-account feature, which lets me compartmentalize your savings accounts and nickname them with labels like "Emergency," "Vacation," "Gift," and "Roth IRA." Not that you can't nickname your account at other online banks, but it's the ease with which you can open a new ING savings account that really sold me.

With my money clearly assigned to a purpose, I'm more likely to stop and think before dipping into my savings. When I want to take a weekend trip, taking money out of my "trip to Asia" really makes me stop to think; if I'm thinking about buying a new toy for my car, I stop to ask myself if the toy is actually an "emergency." (It isn't. But a happy story about this: After holding out for almost 3 months, I finally got a cargo cover through a friend - for free! The wait was definitely worth saving $90 for a new one!)

My favourite thing about ING (besides the very user-friendly interface) is the sub-account nickname feature that forces me to re-examine the opportunity cost of my "I-wants" by reminding me of what I was trying to save for in the first place. And any feature that helps me curb my frivolous spending is well worth the 0.65% APY.

For the interested, new accounts with at least $250 opening deposits can take advantage of ING's account $25 opening bonus by using the following links:

Link Me, Please.
Link Me!
Link Me, Baby.
Link Me Now!

You can also email me for an email invitation. Please note that I earn $10, you earn $25, and when you open your own ING account, you will be able to earn referrals as well! The link will be on the bottom of your Accounts page.