So we haven’t fully funded our Roth IRAs, but I’m giving away more than $23,000. That makes sense, right?
Well, thanks to ING Direct — it’s true! If you sign up with ING Direct through my referral, we both win. Here’s how I did the math.
- Your Initial Deposit: $250
- Bonus Deposit from ING (for depositing $250+): $25
- Total Principle: $275
- Assumed Interest Rate: 3.25% (current savings rate is 3.4%)
If you leave that $275 in the account without adding any money to it, in 30 years the account will have $729.04 in it. Take away your original principle of $250, and you’ve earned $479.
This assumes:
- interest rates won’t go back up to the 4%+ we’ve enjoyed until the recent federal reserve cuts
- you don’t add any additional principle; if you did, it would be obviously worth much more
- you don’t pay taxes on the interest earned each year (which is untrue, I’m just ignoring it for simplicity)
And just for disclosure sake: I’ll earn a $10 bonus if you sign up.
Setting up an account with ING is a great first step. ING makes it easy to setup multiple accounts so you can save for specific goals. Transferring money is easy. Customer service is great. I can’t say enough about ING. If you’re interested, just leave a comment with your e-mail address!
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I’m interested in setting up an ING account. I’ve just found your blog, so I’m not sure how old this post is. But, if you can still send out a referral so I can sign up for an account, I’d appreciate it. Thanks!