The online bank's latest promotion provides a further reminder that competition is back.
ING is promoting its Electric Orange checking account by encouraging consumers to go to its website and compare their bank overdraft fees to ING’s low fees. On its site, it provides a rather simplistic “Overdraft Calculator” that allows consumers to input the amount of money being overdrawn, the number of days in overdraft, and the overdraft fee of another bank. The screen then shows a comparison based on the interest charged for an overdraft line of credit, currently at an APR of 7.25%. The default example shows ING charges a fee of $0.20 for $100 overdrawn over 10 days, compared to another bank’s charge of $30.
The low overdraft fee is just one feature ING is leveraging to ramp up promotion of its Electric Orange Account. It currently has a $50 bonus, offers fee-free ATM withdrawals, free online bill pay, and a free MasterCard Debit card (not that anyone would pay for bill pay or a debit card, but it reinforces ING’s positioning.).
ING’s latest push should remind credit unions that they should be capitalizing on an area that is a typical credit union strength – low fees. Credit unions should offer online comparisons between their low fees and the fees of other local financial institutions to help illustrate to members that their credit union offers a better deal. Many financial institutions make it difficult to find fee information, so members who are comparing products may not fully understand the differences between credit union options, particularly for loans.
New Mexico Educators Federal Credit Union has an online fee comparison that compares its rates and fees to other local competitors across product types. It includes detailed information that helps raise awareness of the types of fees members are asking about.