Once this deal becomes final, ING Direct accounts will be converted to Capital One accounts. If you're an ING Direct customer, here's what you need to know.
Recently, Capital One announced it was acquiring ING Direct to make it the country's fifth-largest bank (measured by deposits), according to this Washington Post article. The acquisition will potentially allow Capital One to issue more loans and grow in size even more, since it is now able to enter new markets. The deal could close by the end of 2011 or in early 2012.
ING Direct is one of the pioneers of online banking, and is well-known for offering competitive interest rates while providing customers with low-to-no maintenance fees and high levels of customer service. Many loyal ING Direct customers are outraged at this acquisition, as this New York Times blog reports. So if you're an ING customer, how will it affect you?
No changes to your account will happen until the deal is finalized at the end of 2011 (or in early 2012). A Capital One representative that was interviewed for the New York Times article indicates that they “have no plans to make any significant changes. ING customers should expect the same great customer experience and the ‘status quo’ from ING for the foreseeable future.” Capital One also stresses its commitment to sustain ING Direct’s high level of customer service.
Only time will tell whether or not Capital One will be able to satisfy its newly acquired customers in the same way ING Direct did. If you're a current ING Direct customer, you may want to ride out the transition to see how it goes before determining whether or not you would be satisfied with your new Capital One account. However, brand (and bank philosophy) is of great importance to some people, and some consumers will be immediately uncomfortable with the change. If you are one of those consumers, the good news is that you have some time to research other banking options available to you and determine whether or not you want to remain in a Capital One account, or if you want to try a new bank.
It is no secret that interest rates at banks are generally low in today's economy. However, your bank may help make up for it by offering you other perks. Bank of America's Museums on Us program is a perfect example.
It can be disheartening to look at the interest rates offered by most of the banks in today's economy. However, your bank could be offering other perks that may help cheer you up, despite the generally low interest rates. Bank of America’s Museums on Us program is a perfect example.
If you take your Bank of America (or a Merrill Lynch) debit or credit card to participating museums, zoos, science centers, and botanical gardens, you can get free general admission on the first full weekend of every month. For example, that means on July 2nd and 3rd you can take your pick of participating local museums and visit it for free. The Bank of America customer must bring a photo ID and free admission is limited to the cardholder only, but it can still save you a lot of money—especially if you take full advantage of all of the museums available to you. There are approximately 150 museums nationwide that participate in this program.
As an example in the Boston area, the Boston Museum of Fine Arts normally costs $20 for a regular adult admission. The Boston MFA participates in the Bank of America program, so the cardholder would get in free. This museum also offers free admission to children under 17 on the weekends, so your entire group may be able get in free if it’s just the cardholder and children (depending on the museum’s policy). If you’re married and both you and your spouse have a Bank of America debit or credit card in your individual names, then you would both get in free.
If you happen to live in (or are visiting) New York City, you can get into places like the Bronx Zoo, the Metropolitan Museum of Art, and the New York Aquarium for free on the first full weekend of the month. The full list of free attractions is available here.
If you’re not a Bank of America customer, check with your financial institution to see if there are any hidden perks or discounts you may be able to get as a customer. It can help soften the blow of low interest rates in a bad economy.
PNC Financial has agreed to buy the U.S. banking division of the Royal Bank of Canada for $3.5 billion. It marks a retreat for the bank even as other Canadian banks look to expand south of the border.
RBC U.S., based in Raleigh, NC has more than 420 branches concentrated in the Southeast. It has $27 billion in assets. Financially, RBC U.S. has a Texas Ratio of 34.11%, which is above the national average of 22.56%. Based on FDIC data from the quarter ending March 31, 2011 it also has a return of equity of -5.96%. RBC U.S. suffered from the mortgage mess that has afflicted many banks across the country and its parent bank in Canada was eager to divest the business. For PNC, it offers a way to expand into a region it has little presence.
For those of you who have accounts at RBC U.S. the deal is expected to be completed in March 2012.
