We recently used an Orange Key to set up an ING Direct Tax-Free Investment Savings Account (TFSA) in my wife’s name to use as our emergency fund and saving for annual expenses like Christmas gifts and property taxes. We decided to use ING Direct for three reasons:
- Unlike some other banks, this is a TFSA with no fees
- The current 2% is a great rate compared to most other banks’ high interest savings accounts
- Using an Orange Key (35090351S1) gave us a free $25 when we opened the account
ING Direct Orange Key: 35090351S1
TFSA with no fees
Some banks have TFSA accounts with either administration fees or withdrawal fees. We chose ING Direct because they have no fees. This is especially important in these early years of the TFSA since the fees could wipe out any tax savings from the interest on a relatively small balance.
High interest rate
While a couple years ago, I wouldn’t be calling 2% a “high interest rate”, in the current economy this is about as good as it gets for a savings account. While everyone loves their low mortgage lending rates, the low interest rates have a negative effect when you’re trying to save money and earn interest on it. That said, ING has a good track record of providing one of the best interest rates at any point in time, so I’m hoping to see this rate increase eventually and stay ahead of the competition.
ING Direct does also offer a Tax-Free Guaranteed Investment (GIC) with up to 3% interest. While this account didn’t suit our needs since we plan to access the money, it could be a great way to set up a GIC ladder inside your TFSA.
Orange Key for a free $25
Being able to use an Orange Key for a free $25 helped to break the tie between ING Direct and Ally, which is another good choice for a TFSA, also with no fees and the same interest rate. Once you have your own account, you also get an orange key to refer friends and family and not only do they get $25 added to their ING savings account, buy you will get $25 as well!
If you want to sign up for a TFSA at ING Direct, you can use Orange Key 35090351S1 to get a $25 added to your account for free! Once you sign up, just send them a cheque for you initial deposit of $100 and once they finalize your account you’ll have an extra $25 added. The Orange Key is also good for accounts outside of a TFSA, including high interest savings accounts, GICs, and mutual funds.