Extra-Konto

Introduction

ING's Extra-Konto is one of the best-known instant-access savings accounts in Germany, aimed at savers looking for an attractive introductory rate who are willing to open an ING checking account at the same time to get the highest rate. It suits both short-term reserves and as an entry point into ING as a primary bank.

Interest rate

New customers receive a promotional rate of 3.75% p.a. for four months — but only if a checking account is opened with ING at the same time. If the Extra-Konto is opened on its own, without an accompanying checking account, the new-customer rate for the same four months is 3.20% p.a. In both cases the higher rate applies only to deposits of up to a maximum of EUR 250,000; amounts above that already earn the variable 0.75% p.a. even during the promotional phase. After the four months end, the rate for the entire balance drops to the variable standard rate of 0.75% p.a.

Terms and conditions

No minimum deposit is required. Account management is free, and there is neither a fixed term nor a notice period — deposits and withdrawals are flexibly possible at any time. An ING checking account is not mandatory to open the Extra-Konto, but it is required for the higher promotional rate of 3.75% p.a.; without the combined opening it stays at 3.20% p.a. Existing customers can also open the Extra-Konto on its own, without a new checking account.

Pros and cons

Pros:

• High promotional rate of 3.75% p.a. when opening a checking account at the same time
• Still 3.20% p.a. for four months even without a checking account
• Free account management, no fixed term or notice period
• No minimum deposit required

Cons:

• Highest rate (3.75%) only with a simultaneously opened ING checking account
• Promotional rate limited to four months and capped at EUR 250,000
• Only 0.75% p.a. variable after the promotional phase
• Amounts above EUR 250,000 earn only 0.75% p.a. even during the promotion

Verdict

ING's Extra-Konto is compelling mainly in its first four months: anyone willing to open an ING checking account at the same time locks in 3.75% p.a. on up to EUR 250,000, and still gets 3.20% p.a. otherwise. For a realistic assessment of the return, though, it's important to note that the rate drops to 0.75% p.a. after four months. As a short-term sign-up bonus the account is attractive; as a long-term savings solution, one should plan around the lower standard rate instead.