Electric Orange Checking - Overdraft Line of Credit

Why is the balance on my Electric Orange checking negative?

You'll see a negative balance when you’ve made a withdrawal or purchase that has taken your balance below $0.00. The negative amount reflects the amount your Overdraft Line of Credit has kicked in to cover the difference between your available balance and the amount of the withdrawal or purchase

How does the Overdraft Line of Credit work?

It’s connected to your Electric Orange and is accessed anytime your balance goes below $0.00.

Here’s an example: An Electric Orange Customer has $1,000 in his Electric Orange, and an Overdraft Line of Credit limit of $165. He buys a new laptop computer for $1,100 using his Electric Orange Card. This transaction will be processed using the $1,000 balance in his Electric Orange, and $100 from his Overdraft Line of Credit. His Electric Orange balance will now appear as -$100 on our website, which reflects the $100 credit used from his Overdraft. He will then pay a competitive interest rate on the $100 he borrowed.

How do I apply for an increase on my existing limit or reapply for an Overdraft Line of Credit?

It’s easy, just follow these simple steps:

1. Sign in to ingdirect.com with your Customer Number or Saver ID and PIN
2. Click on your ‘Electric Orange’
3. Click on the ‘Account Maintenance’ icon
4. In the ‘Overdraft Line of Credit’ section, click on the 'Apply' link
5. Complete the online application, hit  ‘Continue’ and then ‘Accept’
6. You’ll receive an email response from us within 2-3 bank business days

Is there a charge for using the Overdraft Line of Credit?

You’ll pay a competitive interest rate – based on the ING DIRECT Prime Rate – on the amount you borrow.

How will I know if my Electric Orange balance has gone below zero and I’ve gone into my Overdraft Line of Credit?

You’ll receive an email notification alerting you when this occurs. When you sign in to ingdirect.com, you’ll also see a negative balance on your Electric Orange along with a reminder that your Overdraft Line of Credit is providing automatic protection. In order to pay back the balance, you’ll need to make a deposit.

What is the interest rate on the balance my Overdraft Line of Credit covers?

The current variable interest rate as of is . It’s based on the ING DIRECT Prime Rate – a highly competitive rate much lower than most banks.

What is the ING DIRECT Prime Rate?

The ING DIRECT Prime Rate is used as the base rate index for some of our variable rate loans, and may be used as an index for other lending products. Adjustments to the ING DIRECT Prime Rate occur periodically, sometimes in line with changes to the Federal Funds Rate.

How is interest calculated on my Overdraft Line of Credit balance?

Whenever you dip into your Overdraft Line of Credit, we’ll calculate the interest owed from the day the transaction amount is posted until the balance is paid in full. There is no interest grace period for transactions that post against your Overdraft Line of Credit. Interest owed will be calculated by:

• Multiplying the daily ending balance on your Overdraft Line of Credit by the daily periodic rate.
• Daily periodic rate is calculated by dividing the current APR by 365 – or 366 in a leap year.
• At the end of the month, we’ll add all of the interest owed amounts for the days that you held a balance in your Overdraft Line of Credit.
• Then we deduct that amount – the finance charge – from your Electric Orange balance.

How do I repay the Overdraft Line of Credit balance?

Simply make a deposit into your Electric Orange. You can do this by using the ‘Transfer Money’ tab. Any recurring deposits, either through Direct Deposit or an Automatic Savings Plan, will also count as a payment.

How do I pay the interest on my Overdraft Line of Credit balance?

At the end of each month, we'll automatically subtract any interest owed from your Electric Orange balance. If you dip into your Overdraft Line of Credit at any point in the month, the interest will be deducted at the end of that month.

If I’m carrying an outstanding balance on my Overdraft Line of Credit, when and how much will I have to pay?

If your Electric Orange balance is negative at the end of the month, you must make a deposit of at least the minimum payment amount by the last day of the following month. Here’s how to calculate your minimum payment amount:

• If your month end Overdraft Line of Credit balance is over $3333.33 – you need to pay at least 3% of your outstanding balance.
• If your month end Overdraft Line of Credit balance is between $100 and $3333.33 – you need to pay at least $100.
• If your Overdraft Line of Credit balance is less than $100 – you must pay the entire outstanding balance.

We’ll send you a reminder email before your payment is due and additional reminder emails when you miss a payment. When you sign in to ingdirect.com, you’ll also see a message that provides instructions on how to make a payment.

What happens if I don't pay my Overdraft Line of Credit on time?

If you do not make the minimum deposit due by the last day of the following month, any missed payments will be included in the next payment due. If you miss a payment, a temporary hold will be placed on your account. Until a payment is made, you will not be able to use your Electric Orange Debit Card or make any withdrawals (including Bill Pay, Person2Person Payments, Mail a Check and Overnight a Check).

If you miss more than three payments, your Overdraft Line of Credit limit will be reduced to zero ($0), and your Electric Orange may be closed altogether. You’ll still need to make payments to the outstanding Overdraft Line of Credit balance.

This does not affect any other accounts you may have at ING DIRECT.

Why is my Overdraft Line of Credit showing zero when I haven't exceeded my limit?

It could be reduced to zero for several reasons, including a request made by you to lower your limit, an adjustment on your available limit as a result of late payments or an account review. If this does occur and you’re not sure why, give us a call at 1-888-464-0727 and one of our Associates will be able to provide you with more detailed information.