Bank Scam #5: ING Direct (Soon to be Capital One 360)

Bank Scam #5: ING Direct (Soon to be “Capital One 360″)

I remember seeing the orange lion of ING Direct for the first time while surfing the internet. I was frustrated about the pathetic interest rates offered at my bank and had read that “Rich people don’t work for money, money works for them.”  I was searching for ways to put my money hard at work for me.

I discovered that my bank was paying less than 0.5%, when an Orange savings account at ING Direct was paying 4.5%. Wow! My money could be working 10 times as hard for me. Plus, there were no offers to apply for a credit card on their website. It was refreshing to do business with a bank that did not look or act like a bank.

What I did not know was that ING Direct was created to give customers a safe-haven away from the predatory nature of big banking. ING Direct touted “no fees,” “no minimums,” and they would not sell your information to other companies. Not selling your information meant that another bank could not buy your information–looking to fill your mailbox with dozens of credit card offers.

Yes, ING Direct was meant to be different. They were a bank that was not looking to bury Americans into high-interest debt. But ING Direct is not the same company it was just a few years ago.

How is ING Direct different today?

  1. ING Direct is now paying 0.75% on savings, not 4.5%.
  2. ING Direct was purchased by Capital One, a credit card company. They are now part of the “Capital One family.”
  3. ING Direct will soon be gone. Capital One 360 will emerge in it’s place.

Why would a credit card company that blankets America in debt suddenly want to help Americans to save money? I don’t believe that Capital One will ever look to help anyone but Capital One.

Here is what I believe:

  • I believe that Capital One only purchased ING Direct to market Capital One products to their new customer base. What is the the number one product of Capital One? That is right, credit cards.
  • I believe that the 7.5 million customers of Capital One 360 will be targeted to distribute high-interest credit card debt–using their own savings to fund the debt.

If you are a customer of ING Direct, I would suggest you close your account today. And, if you decide to stay, simply realize that your savings may be used to fund the credit card debt–which is destroying the middle class. If you are asking, “What is in it for me?” I hope you understand that without the middle class, there will be nothing left for you, me, or anyone else. The bankers will be fine. They were not lending any of their money anyway.

What do you think?

Please forward this to anyone you know that has an ING Direct savings account. They may decide that they don’t want to lend their money to a credit card company?

Related Posts: Bank Scam #1: Save Money

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43 Responses to Bank Scam #5: ING Direct (Soon to be Capital One 360)

  1. gillian January 17, 2013 at 8:21 pm #

    Wondering if we pull our money from ING, do you have another suggestion as to where to invest it?

    • mark January 18, 2013 at 9:45 pm #

      Hello, that really depends on what credit unions are in your area.
      Perhaps pay off credit card debt? That can be a great rate of return to pay off 16% interest debt (16% return), and far more than the 0.75% that ING Direct is paying. You will only earn $0.75 for every $100 you save in ING Direct/Capitol One 360 for the entire year anyway.
      The point is to send a message to Capitol One and close your account before the credit card offers start coming in the mail. If you leave your money with Capitol One, it will be used to fund debt to other American Families.

  2. LOL January 17, 2013 at 10:07 pm #

    Judging by the Facebook and forum comments throughout the internet, most people are upset over this. The only ones who aren’t are the ones naive enough to think everything will stay the same and not actually effect them. The “changes” and “fees” will happen gradually and the Ing Direct as we know it will no longer be “free” and everything else you stated. The fact that Ing Direct can’t even keep it’s name or colors shows that it is already letting Capital One make it’s decisions.

    • mark January 18, 2013 at 9:32 pm #

      LOL, You are correct. I don’t believe a credit card company will ever help it’s customers. The reason that Capital One cannot use the colors and name is that “ING” does not want to be associated with Capital One. When ING (the Dutch company) sold ING Direct (the Bank) to Capitol One, they could only use the name ING Direct and it’s colors until February 2013. It does not matter the rate of interest that “Capitol One 360″ will pay their customers. They will make their profit sending credit card offers in the mail to get everyone in debt to Capitol One. Sad, but true.

  3. Hansen February 1, 2013 at 7:23 pm #

    No offense Mark, but with the competition as it is, I think their interest rate are still a lot higher than the national average. Also, it’s Capital One, not Capitol One.

    • mark February 1, 2013 at 8:14 pm #

      Thanks for the tip. I am simply providing the education and everyone can make their own decision that they feel is best for them. The fact is, thousands of people are leaving ING Direct and ten of thousands more will leave. It seems that many Americans feel that Capital One is not working in their best interests…

      Lastly, if you decide to stay, please let me know the marketing materials that suddenly start arriving in the mail. Capital One makes money distributing credit card debt, NOT helping Americans save money.

      • Bill February 18, 2013 at 10:20 pm #

        Mark,

        I am curious how you can say “thousands of people are leaving ING Direct and ten of thousands more will leave”. I’m quite certain that ING and Capital One do not share this data, so your comments are speculative at best.

        • mark February 21, 2013 at 2:25 am #

          Hey Bill, I guess time will only tell to see if I am right. Not sure if you are aware but over 6 million people left big banks in 2012 because they do not trust their megabank and they don’t trust Capital One the same…

          I will be posting again when I am right though…just waiting for the news to come in about all that bailed on Capital One…lol : )

          • Bill Hunter November 3, 2013 at 1:44 pm #

            So, what’s the latest? It’s been 9 months since the branding change, do you have the stats on all the “tens of thousands” that left?

            FWIW, since capital one took over their features have improved. I can do remote deposits via my smartphone and conduct international purchases without exchange fees. Two features ING lacked.

            As for the interest rates; have you looked around? Everybody’s rates suck. I can currently get 0.89% from Ally (versus capital one’s 0.74%), but at the end of the day they both suck. If you’ve got so much money in your savings account that 1/10th a percent is a big deal then I hate to tell you that you’re doing it wrong.

          • mark November 5, 2013 at 1:38 am #

            Hey Bill, you are correct, they both do suck. Did you look at my post for alternatives to Capital One 360? I personally invest most of my money and I don’t really believe in saving a bunch of money in banks, or credit unions for that matter. I also invest with after-tax money and no taxes will ever be due on the profit. Find a good financial advisor who can show you how. It is not the rate of return that matters most, if it is highly taxed like bank savings.

            As for the people that left, Capital One is pretty tight on disclosing how many left. I don’t really spend much time on that either and focus on the solution instead. I did refer a client to a credit union to refinance her 20+% Capital One credit card (and Macys and Home Depot) and they got 8.99% at the credit union. They also refinanced their car to a much lower rate and they can use that additional cash flow to completely eliminate all their credit card debt (in half the time). I educate people about money…and all that education is very bad for big banks and credit card companies.

            Thanks for coming back to check in on the site! Mark

    • Melissa June 18, 2013 at 12:29 am #

      Capital One interest rates may be higher, but 0.75% is still a joke. Is the argument that Capital One is screwing people over less? I was an ING DIrect customer and super happy with them. The first thing Capital One did to me was deny my husband his status as a joint account holder (because he’s a foreigner with a green card and no credit… why that matters on a shared checking account to allow him to direct deposit his paychecks into, I have no idea) and then they started sending me credit card offers. No thanks. i just closed my last account with Capital One today and it feels nice :)

      • mark June 21, 2013 at 5:42 am #

        Hey Melissa,
        Good to hear you left Capital One 360. Be sure to review my post with alternatives to Capital One 360 by clicking here.
        And when I doubt, simply remember rule #1:
        Keep your money away from the bank. Don’t save with big banks, and don’t borrow from big banks. We can all do our part to help our families, our communities, and the middle class.
        Thanks! : )

  4. Stephen February 2, 2013 at 3:15 am #

    Mark, I am 8year ING client and like you will be leaving soon. I plan to move my accounts to ally.

    You are right on several points but it is misleading to slam Capial One/ING on the rate drop. They base their savings rate on the federal discount rate set by the Federal Open Market Committee. Right now that rate is real low thus they lay little.

    Right now many are benefiting on mortgage rates at an all time low. Ya can’t have it both ways.

    Good summary on it.

    http://www.thesimpledollar.com/2011/07/12/why-are-savings-account-rates-so-low/

    Thanks for the great site. Keep up the hard work

    • mark February 4, 2013 at 10:13 pm #

      Hey Stephen,

      See the response to Kristin above regarding the interest rate paid by ING Direct. You are correct.

      I too am benefitting from low interest rates and have a 3.35% mortgage, so after the tax deduction on interest, that is decent. The good news is that I also earn 2% on MY CHECKING ACCOUNT at my credit union. Again, this is NOT a savings account, it is on my eChecking account at Burbank City Federal Credit Union.
      Here is the link: https://www.burbankcity.org/checking.aspx

      I have found credit unions that pay far higher rates than any bank, including Capital One 360 and Ally, but you have to dig around a bit. I have a relative that earns over 2.5% in her “Go Green” Checking account at her credit union in Long Island. There are a few hoops you have to jump through but it is simple to set up.
      https://www.mynefcu.org/account-detail.cfm?account=175

      When you leave ING Direct (and I hope it is sooner than later) Ally is a much better alternative (in my opinion), but ultimately, I would recommend using a credit union for short term saving, while learning some basics about investing to grow your money ahead of inflation. Remember, Bankers invest while telling their customers to save in the bank.

      I simply believe in financial education and have found that All financial education is bad for future of big banking. : )

  5. kristin February 2, 2013 at 3:28 am #

    Hey Mark, I wanted to get on board with what you’re saying, but the proof just isn’t there for me. When was ING Direct paying 4.5% in interest? Was it at the height of the market, just before the bubble burst and everyone lost? If so, it seems unfair to say their rates dropped because of Cap One. I’d bet a pretty good amount that no one is even paying over 2% for a savings. I know my accounts at other banks are paying something pathetic like .01 and .05%.
    Eventually we’ll see where it all goes, but hey, if they are still “no fee” what’s the downfall of keeping the account? Would you jump into freezing water from a boat that’s not sinking?

    • mark February 2, 2013 at 11:04 pm #

      Hey Kristin, thanks for your questions and concerns. ING was paying 4.5% before the economy collapsed, you are correct. The rates dropped because interest rates dropped, not necessarily because of Capital One buying the company. I can tell you that Arkadi Kuhlmann (who built ING Direct)did not like the business practices of companies like Capital One. He did not send credit card offers to his customers looking to get them further into debt, which is exactly what I believe Capital One is looking to do. Here is a great article to learn about Kuhlmann.
      http://www.time.com/time/magazine/article/0,9171,1633064,00.html

      If we are to turn things around in this country I think we all need to stop asking “What is in it for me?” and start asking “What does Capital One (or BofA, Chase, etc) do with my money when I give it to them?” “Are they looking to help me and my community, or just help themselves?”

      You also may want to consider that if inflation is 3-4% you need to earn more than inflation, and 0.75% is not going to cut it. Perhaps find a great credit union and talk with a financial advisor about how to put your money hard at work for you, rather than working hard for Capital One.
      Lastly, be sure to watch the Bill Maher video on my site to help you in your decision!
      Here is the link:http://www.richmanpoorbank.com/2012/08/bill-maher-hates-abusive-relationships-and-maybe-everything-and-everyone-else/
      Thanks for your feedback!

  6. Dave February 5, 2013 at 1:31 am #

    Mark, I have been a customer of ING Direct since 2006 and while it is sad that the rates are not as high as they once were, it is still a great company to deal with. In addition to a rate that is higher than my local banks, they offer free bill pay, no fees on foreign transactions, a great mobil app, remote deposit capture, no overdraft fees, and free ATMs. But my favorite part of being a customer is the ease of use of their products and the fact that when I call them I get to talk to a real person and one in the USA. They have been under the ownership of Capital One for nearly a year but there have been no negative changes made to my accounts or the way they treat me as a customer. I am curious what you wanted to happen when the European Commission forced the divestiture of ING Direct USA. You seem to be on a mission to destroy their reputation because they are now owned by a company who has a credit card division (in addition to home loans, auto loans, and retail bank) yet you recommend your readers go to Ally Bank instead. It doesn’t take much research to find that Ally used to be GMAC Finance and was rescued by our tax dollars as part of the government bailout. Here is a statement from the Ally Wikipedia page… As of January, 2012, TARP had about $12 billion invested in Ally.[16] The government stake represented a 74% ownership interest in Ally. In March, 2012, Ally failed the Federal Reserve’s so-called financial “stress test” for capital adequacy. The company said in a statement that the Fed’s “analysis dramatically overstates potential contingent mortgage risk”. A possible outcome would be a requirement to raise additional capital.

    I also am a Credit Union customer, but only because I need a safe deposit box and want a no fees checking account. The downside is they don’t offer a mobile app or remote deposit capture and with gas prices at $3.59, I am saving money by not driving to the credit union to deposit checks.

    Your points about Capital One sending mailings out because I am a ING Direct customer is not a worry of mine because Capital One has had my personal information since they took ownership of ING Direct almost a year ago and they have yet to mail me anything. Closing my card today as you suggest is not going to prevent them from sending me credit card offers. Blaming a credit card company for having a high balance on your credit cards is like blaming McDonalds because you are obese. In each case, it takes some self control to not abuse either. I enjoy an occasional Big Mac, but I don’t eat there every meal. The same goes for a credit card, sometimes I need them to purchase something online or reserve a hotel, but that doesn’t mean I use them for everything I purchase.

    • mark February 5, 2013 at 8:39 pm #

      Hey Dave, thanks for taking the time to make some good points. I want to let you know that I don’t actually recommend Ally and I prefer a credit union myself, and as I stated in an earlier I earn 2% on my echecking account. I have found credit unions are a better place to save and borrow, as you are an owner and member, and the profit will stay within your local community. It is true that the larger credit unions have more services, so if you are with a smaller credit union you may not have all the bells and whistles of a big bank.
      You may not be aware but most credit unions are all linked together with the COOP Network of ATM’s which links your debit card to over 30,000 Fee-Free ATMs within the US and Canada. You may be able to deposit your checks at your local 7-11 or any credit union ATM? Check with your credit union.
      You can also have a credit card issued from your credit union, which on average has less fees than a bank-issued card. I can even take a cash-advance from my (credit union issued) credit card with no fees and only 10% interest. How much does Capital One charge for a cash-advance, and what is the interest rate for cash-advances?

      Please keep in mind that as credit unions grow their customer base they can upgrade their services to complete with the banks. The problem is that the banks have lobbied against credit union growth because they cut into their profit. Refinancing 24% interest credit card to a low 10% interest card from a credit union is very bad for Capital One, and I recommend it all the time. I then teach those same folks how to eliminate all their credit card debt.

      I actually am not destroying the reputation of Capital One, they have done that themselves. I am simply providing some better alternatives to lending your money to a credit card company. I just don’t have a multi-million dollar advertising budget to advertise credit unions, nor do I have the power to influence Washington to block marketing of high-interest debt to college students (It took decades to stop marketing to students and the legislation was blocked at every opportunity by the big banks). Capital One historically has targeted putting high-interest credit cards into the hands of college students, just like tobacco companies like to advertise cigarettes to teens. Should we allow marketing of cigarettes to teens too since it is their decision to smoke or not?

      I simply choose to support businesses that make better decisions for their customers, their communities, and the country as a whole and do not believe we should give our money to credit card companies…just my opinion though. I don’t eat Egg McMuffins because the quality is better at Starbucks, and Starbucks provides a much better opportunity to their employees than McDonalds. I don’t buy my food at a large grocery chains as the quality is better at Trader Joes, and Trader Joes also provides a better opportunity for their employees.

      Also, keep in mind that ING itself only sold ING Direct to Capital One providing they could not use the ING colors and name long-term. It seems that even ING does not want to be associated with Capital One either?

      If you want to stop credit card offers from arriving in the mail, simply call 888-5-OPT-OUT. Capital One will still send them to you, but that is only if you stay as a customer of Capital One.

      My long-term goal is to make real (non-bank) financial education available to the masses so they can make better decisions with their money. Currently I only learned how to fill out credit card applications while enrolling in college to rack-up huge debt. Yet we don’t provide financial education in school. Why not?

      Again, thanks for the good points. I hope you learned something by stopping by my site. Perhaps you will even pick up a copy of the book when it comes out? Have a great 2013!

    • Robby May 6, 2013 at 9:08 pm #

      Mark that was intelligently put. I consider you wise in my eyes.

      • mark May 14, 2013 at 12:16 am #

        Hey Robby, and you are incredibly kind : )

  7. Chris February 5, 2013 at 2:42 pm #

    So glad I spend the last decade moving my money out of North Fork Bank (before Capital One bought it so many years ago) into ING Direct, gradually closing one CD and opening a new one, only to have it all come full circle.

    And yes, ING Direct did have savings rates up in the 4’s and CD rates in the 6’s (I’ve been keeping a record for a LONG time). It was a wonderful time! My last 5-year CD is about to mature, it has 3.00%. (Sigh!)

    • mark February 5, 2013 at 8:41 pm #

      Hey Chris, please review the other responses for ideas of where to put your money. Hopefully you are aware of how to use a Roth IRA to eliminate taxes on your long-term investing. If you deduct taxes from 3% that will never keep ahead of inflation : (

  8. sgh February 7, 2013 at 4:17 pm #

    I had an account with ING for about 7 years. When I learned that Capital One was taking them over I transfered all my money to Ally and to my brick/mortar credit union.

    I had some difficulties a few years ago in making my Capital One Visa credit card payments after a bought of long term unemployment. I contacted their customer service department who told me that they would work with me and then one day later I received a collection letter with a nasty tone from them.

    I vowed no more Capital One accounts of any type ever again and when it came time to renew my debit card, I shredded it and marked all of their emails as spam.

    • mark February 7, 2013 at 8:37 pm #

      Hey sgh, good to hear it. I believe that moving your money away from the banks and credit card companies to support a local credit union is a step in the right direction toward helping you and your community. If you read all 10 Bank Scams you will understand the Debt Matrix and you can choose to live a bank-free life : ) Thanks for the support!

  9. cmc February 8, 2013 at 4:28 pm #

    Mark, I am 100% in agreement with you regarding ING Direct. I also agree with the credit unions being the way to go. I used to always have my money only in credit unions and then I found ING Direct and was so impressed. I made the leap and was happy until now. I have been with them for years and cannot believe they would “sell out” to a preditor like Capital One. Everything they put together is now gone and it is beyond disappointing to me. I am going to now close my account and go back to credit unions.So disappointing…ING Direct was like a bright light in a very dark time.

    • mark February 8, 2013 at 6:45 pm #

      Hello cmc, I had a similar story. I was a customer of Wells Fargo, then found ING Direct and cut the ties from Wells. Soon I discovered credit unions and I used my credit union and ING Direct to save money for my emergency fund. ING (the Dutch company) is still a great company and unfortunately they were forced to sell ING Direct, and Capital One made the purchase.

      Perhaps Arkadi Kuhlmann, the creator of ING Direct will create another bank that actually helps their customers save money? Thanks for stopping by the site and come back again soon, thanks

  10. Mike N. February 9, 2013 at 4:11 am #

    I’ve had an account for coming up on three years. For the modest sums of money I set aside as readily-liquid savings, even at the currently shrunken interest rate, it’s vastly superior to brick and mortar institutions which require relatively huge sums of money (complete with service fee penalties if they drop below set levels) to even match the percentage that Ing/now CapitalOne360 is currently offering. I’ve seen nothing in the posts in this thread to clearly contradict that/offer an alternative that’s reasonable for my situation.

    Whether or not they bombard me with credit card offers is irrelevant to me. Water off a duck’s back.

    I’ll stick with it until any word of fees manifests and/or until the rate falls far enough that another option becomes more viable.

    • mark February 10, 2013 at 8:39 pm #

      Hey Mike, have you looked into Ally as an alterative? Or better yet, try a local credit union. To find a credit union use this post:http://www.richmanpoorbank.com/2012/06/how-to-find-a-credit-union/

      As many Americans carry high interest debt–while at the same time saving at 0.1%, I would also recommend refinancing any debt you may have to the credit union at lower rates. Dropping interest rates on an auto loan, credit card or even a mortgage could save you thousands of dollars a year in interest costs. I have saved my clients a few hundred dollars a month in interest costs by sending them to the credit union. Refinancing a mortgage to a lower rate and getting rid of PMI (private mortgage insurance) could save you a small fortune. It would take a few thousand years to earn the equivalent at Capital One even if investing a very large amount. Not sure what your local credit unions pay but it is always higher than the big banks. Best of luck with Capital One if you decide to stay…Thanks for stopping by.

  11. Aaron February 19, 2013 at 4:31 am #

    Mark,

    It sounds to me that Capital One isn’t the victim. It sounds like a lot of uneducated americans need some self-control and also some enlightenment on financial education. If you stop spending what you don’t have, interest and debt wouldn’t be an issue. Or if you pay off what you spend, you won’t accrue interest. I’ve had a Capital One CC for a few years, and haven’t paid one cent in interest. Want to know how and why? I repay what I spend in full each month. And yes, Credit unions have somewhat higher interest rates, but if you don’t have atleast $50,000 in an account you’re not gaining much interest annually anyway, so what’s the point? Gaining sixty cent or even two dollars a month isn’t any money. It’s a joke to me.

    • mark February 21, 2013 at 2:20 am #

      Hey Aaron, I agree 100%. I am a financial consultant and I simply use credit unions to help my clients get out of debt. You are what is called a “deadbeat” in the credit card industry as you pay your cards off each month and pay no interest to the banks. Good job!

      It is the “Revolvers” I am concerned about that keep high interest credit card debt–while saving in the same bank at no interest that concerns me. The solution IS financial education and that is the point of the book. It should be (finally) done by mid-late March!
      And me personally, I invest as saving in a bank or credit union just does not grow fast enough. I hope you do the same! Thanks always for your feedback!

      • Aaron February 21, 2013 at 3:38 am #

        Mark,

        I am an aspiring financial consultant. I currently work for one of the big banks. I’ll be anticipating the arrival of the book once its released.

        • mark February 21, 2013 at 5:14 am #

          The book has been a four year project in addition to opening up several offices in Southern Ca. I hope you find your way to success in the financial industry, and let me know how I can help : )

  12. Anthony March 7, 2013 at 8:03 pm #

    Talk about a biased article.

    Care to tell me how many banks have NOT lowered their interest rates dramatically since the days of ING Direct paying 4.5%? (Hint – it is between 0 and 0)

    Care to tell me how ING Direct could have kept their name considering one of the conditions of the sale was that they would not be allowed to use it anymore? (Trick question – you can’t)

    Care to tell me why you are bashing Capital One for marketing credit cards when it is the consumer who chooses to apply for them and use them? (Oh that’s right, it’s easier to blame the banks instead of people taking accountability for their actions and failing to follow the terms and conditions that they agree to)

    Care to tell me how you know that thousands fo ING Direct customers are leaving and how you know tens of thousands are going to follow them? (Magic 8 Ball perhaps?)

    With intererst rates at historic lows there is no sense in chasing rates. With a $5000 balance, the difference between earning .75% and 1% is a whopping $1 a month. If you don’t mind going through the hassle of switching bank accounts for a few cents a day, knock yourself out. Regardless, giving people the advice to close their accounts because of things that you think are true is irresponsible at best.

    • mark March 8, 2013 at 7:56 pm #

      Hey Anthony, lets cover your questions/feedback point by point.

      Am I biased? YES, I am. I think that is obvious…as I do run a blog called “Rich Man Poor Bank,” and have spent 4 years writing a book that encourages Americans to get out of debt from the banks, and never borrow or save in a bank again. Why use a bank when a credit union has better rates on saving, lower rates when borrowing, and the profit stays within your local community?

      Actually you still can earn 4%. Personally, I earn 2% on my checking account, and you may be able to earn 4% on your checking account depending on where you live. Check out http://www.kasasa.com and enter your zip code and see if they have a credit union near you that will pay you 4%. My question for you is “why can a credit union pay between 2% and 4% and Capital One cannot? The fact is they can, but will not as the purpose is to pay as little as possible while getting Americans in debt at the highest possible interest rate. The purpose of a credit union however is to serve the community and for that reason alone I am very biased toward credit unions.

      Next point. ING does not want to be associated with Capital One therefore they could only use the name ING Direct for a specified period. And ING Direct was created by Arkadi Kuhlmann to be nothing like banks like Capital One—they made a decision not to drive their customers into credit card debt. It is ironic that a company that was made to be nothing like big banking was bought by Capital One.

      And regarding the choice to use credit cards. If someone is educated about how money works uses credit cards, you are correct, that is their choice. my problem is that our schools don’t teach anything about money, and Capital One takes advantage of 10’s of millions of Americans who have no idea what they are doing when they charge up their credit card. Then Capital One uses tricks like “universal default,” and reducing minimum payments–to keep them in debt for life. I educate those same Americans and they choose to get out of debt. Dave Ramsey does the same. Education is the key and I provide the education!

      And finally, I am simply promoting better alternatives to Capital One 360 and big banking, and I will be writing about those better alternatives in my next post. I hope you come back and check it out. Perhaps even “Like” my Facebook page?
      Thanks! :)

  13. Trevor September 14, 2013 at 4:52 pm #

    I’m not sure why you have such animosity to this company. How many banks offer a savings account with NO fees? You can even deposit a check issued by someone who doesn’t have enough money in their account to cover it and your 360 account will not charge you a fee. Other banks will gouge you for this. No minimum balances either. Sure interest rates have fallen from 4.xx to 0.75, but what bank hasn’t in an environment where the federal funds rate is near 0%?

    As for credit cards, if you PAY your bill on time, you never get charged interest. If people are dumb and buy things that they don’t have enough money to buy, of course they will get in debt. TIP: Use autopay so you don’t even have to remember to pay your bill in full.

    I have about 10 credit cards (each obtained for specific reasons at various times) and have never paid a dime in fees or interest in my life. I have gotten rental car damage paid for by a credit card, a camera fixed under the credit card’s own warranty for free, several price matches paid for by the credit card company, and free concierge services to buy concert tickets that were otherwise unobtainable.

    Don’t blame companies that provide great service because some people can’t manage their own wallets. As the SNL skit put it, If you can’t afford it, don’t buy it.

    • mark September 17, 2013 at 5:32 am #

      Hey Trevor,
      I run a blog called Rich Man Poor Bank. I dislike all the big banks, not just Capital One. To your question, “How many banks offer a savings account with NO fees?” The answer is, very few banks offer accounts with no fees, and that is why I recommend credit unions. Many credit unions pay 2%, and even as high as 4% on checking accounts, so why use Capital One? Only those who are uneducated about better savings alternatives would save their money at 0.75%. Perhaps you should read my post about the better alternatives to Capital One 360, and get your money working harder for you?

      It sounds like you are educated about money and credit, and actually fall into the category the banks call “deadbeats.” They use the banks money and do not pay interest. My concern is for those 10’s of millions of other Americans that do not understand finances, yet will get hundreds of credit card offers in the mail each year from companies like Capital One. If you believe that Americans choose to get into debt, then we should put soda machines, McDonalds, and cigarette machines into all public schools, as it is the kids choice to drink the soda, start smoking cigarettes, and eat McDonalds, right? We have an obesity epidemic, and financial cancer is destroying the foundation of our country. Yet Big Tobacco, and Big Banking want more cigarettes and more credit cards in the hands of the uneducated and poor? Am I wrong?

  14. Fernando September 29, 2013 at 11:49 pm #

    I can see that you hate “big banks” but to call Capital One 360 a scam is ridiculous.

    1) I’ve been a Capital One 360 customer for a few months now and I have never received any solicitations for any other Capital One products. As a matter of fact, when you browse to capitalone360.com, aside from home loans there are no mentions of credit whatsoever.

    2) Capital One bought ING Direct not so they could push credit down everyone’s throats. They bought it to get into a lucrative market that they were unable to tap into before: banking–online banking to be exact.

    3) No one is offering much more than 1% interest these days, so it has nothing to do with Capital One buying ING Direct.

    Capital One is in the business of making money like every other for-profit company. Consider that there are two types of people: those who save/invest and those who don’t. Obviously Capital One has always made money off the latter. Capital One 360 allows them to make money off the savers/investors now.

    I made the switch to saving with Capital One 360 simply due to better functionality and ease of use over my credit union–not because of interest rates. By the way, my credit union’s dropped its checking account interest from 5-6% down to 1% soon after I joined. Savings are still a measly 0.25%.

    With Capital One 360, I get a better interest rate, a better tool, and it works perfectly with my current savings strategy. Where is the scam?

    • mark October 6, 2013 at 4:50 pm #

      Hello Fernando, it is good that Capital One 360 is not sending YOU credit cards. But Capital One is sending millions of applications in the mail all year long, and they can use your savings to fund those loans. To understand how Capital One makes money, you will need to understand what a “net interest margin” is. This simply measures where banks get their profit from. It measures what they pay out in interest vs what they charge in interest when lending. And Capital One has a net interest margin twice that of other banks. This indicates that the vast majority of profit for Capital One comes from credit cards, NOT mortgages. They also have 4x higher default rate (according to recent earnings) when compared to other banks. This indicates they focus on higher interest credit cards to less educated and lower income Americans. If I’m not mistaken, this is called predatory lending.

      If you want to hand over your savings and get paid virtually nothing, when you know your savings will be loaned to other less educated Americans at 24%, that is your decision. I simply choose not to lend my money to a credit card company, when there are SO many ways to earn a higher rate of return. At least if I save some cash at the credit union, the profit will stay within my local community. You may want to look at the Bill from big banking to tax credit unions, as unless it is stopped, it could eliminate all credit unions completely. Apparently, offering lower interest loans than the big banks is not good for business, so big banking is working with their lobbyists to eliminate competition and put credit unions out of business. If you think not-for-profit, community-driven lending is important, check out the link below: http://www.donttaxmycreditunion.org/
      Thanks for your feedback Fernando, Mark

  15. AW February 16, 2014 at 1:28 am #

    Mark,

    I found your blog by accident. It’s really good! I appreciate your ideas and opinions, and I like the kind and even tone of your responses.

    All the best on your book. I’ll be on the lookout for it.

    • mark February 17, 2014 at 11:44 pm #

      Hey AW, thanks for the feedback. Ill try and get the book out sooner than later. It looks like the banks may have some big competition on the way with the US Postal Service adding banking services. It may be good to have the US Postal service in competition with the bank, and credit unions. We may get better deals, and more competition is better

  16. Roger Young August 1, 2014 at 8:21 pm #

    I just received an offer, in the mail, of a $100.00 bonus if I open a savings account with $500.00 through 360 Savings. The whole $600.00 would be then available for withdrawal after 30 days. Sound fishy to me. That would be a 20% gain in 31 days!
    Should I go for it? Is there a hidden gotcha there I do not see?

    • Mark Quann August 10, 2014 at 5:22 pm #

      Hey Roger,

      Not certain but always BEWARE of the small print with big banks! They will always find a way to take more than they give. I suspect that they would have some minimum balance requirement, and to keep the account open for a period of time, or they will take the $100 back? BEWARE : )

      • Mark J Quann October 31, 2014 at 6:15 am #

        Hey Roger,

        Just because you took the time to comment on the blog, I figure Id give you an offer im giving to very few people. The link is up to buy the book. If you don’t love the book, simply let me know, Ill send your money back and you can keep the book! : )

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