Ing Extra account: high interest rates and attractive conditions in comparison

Ing Extra account: high interest rates and attractive conditions in comparison

Berlin. In the world of saving, the focus is on the current conditions of the ING Extra account. The direct bank from Frankfurt am Main only offers its services online, which enables simple and inexpensive banking for numerous customers. But how does the extra account do compared to other banks?

attractive interest rates for new customers

With a temptation of 3.30 percent interest on the extra account, the ING is currently attracting many new customers. These interest rates apply to the first six months and are only 1.25 percent for amounts of over 250,000 euros afterwards. In the competition with other providers, such as the Neobroker Trade Republic, which offers 3.75 percent interest for non -invested credit, the ING remains in a good position. Both banks present attractive options for savers through digital banking.

growth of direct banks and their relevance

The ING is one of the largest direct banks in Germany and has a clear competitive advantage through its business model without branches. Millions of customers use this digital solution. At a time when financial flexibility is required, the trend towards direct banks is becoming increasingly clear. The extra account is part of the offer, which also includes a free checking account for young people under the age of 28. These initiatives show how banks adapt to the needs of young people.

The influence of key interest on the savings behavior

The current environment of key interest is a crucial factor for savers. With its interest adjustments, the European Central Bank (ECB) has a direct impact on banking offers. A higher key interest rate usually means better interest for the savers. It is therefore important to observe developments in the interest house so as not to miss the best offers.

conditions for existing customers

The interest for existing customers of the ING are still attractive at 1.25 percent, but not outstanding, especially in the face of inflation of currently 2.20 percent in Germany. Experts warn that the overnight money should be used as an emergency egg in order to cover short -term financial needs, but should not be seen as a long -term system.

lower interest and the compound interest effect

Another point that is often overlooked when saving is the compound interest effect. He describes that interest rates are not only calculated on the original capital, but also on the already accumulated interest. This significantly influences the overall return, especially over a longer period of time. The annual interest payment of the ING could weaken the compound interest effect, since a monthly or daily credit would be more advantageous.

an account for the whole family

An interesting aspect of the extra account is the option of opening a special account for minors. The opening of a junior account requires additional documents, such as the birth certificate, and has to be carried out manually. This shows that the ING also thinks of families that the financial cushions want to build for their children.

conclusion and outlook

For more information about overnight money and savings options, visit our current blog.