An Investment Saving Account (ISA) allows you to use your money in a more effective way than any other account.

Try to recall the rate of interest that your money is earning today in your Checking Account in any of major banks? Right. It is around "zero"! What about Saving Account in your regular Bank? It is 2-3% per year. You could get a better rate of course (but not much better), if you bought a Guaranteed Investment Certificate, but in that case your money would be locked in for definite period of time(non-redeemable or non-cashable GIC). Some contracts (redeemable or cashable GIC) give you more flexibility, so you can withdraw money, but these contracts offer you lower interest rate. For example, there is GIC locked in for 1 year, but with the possibility to withdraw money any time after 30-day period; or there is a contract, which you need to renew every month and you may withdraw money on the day of renwal. That is the law, unfortunately: the higher rate of interest - the less flexibility you have.

Now, because of competition, Banks offer, along with a regular saving account, a saving account with higher interest rate, but with some restrictions. For example, the balance on your account shouldn't be lower than some fixed level, otherwise the lower interest rate would be applied by the end of the month.

Unlike all other accounts, an ISA in ING Bank gives you free 24 hour access to your funds 7 days a week. The account will be connected to your regular checking account in your Bank. It is very flexible, and you don’t have to worry about maintaining a minimum balance. Any time you want you can transfer any amount from your checking account to your ISA. There are no service charges and no transaction fees. You can deposit, transfer, or withdraw as much money as you need any time. And from the day after you open an ISA, your money will start working for you, earning 3.00% per year. Interest on your ISA is calculated daily and paid monthly.

Like any other account you have in a Canadian bank, an ISA in ING Bank is insured by CDIC(Canada Deposit Insurance Corporation). That government insurance covers up to $100,000 CAN(only accounts in canadian dollars are insured) of your funds.

So, to use your money in a more effective way in this case means to invest it with the best possible proffit. If you can afford to lock in your money for a long period of time (1, 2 or more years), you can use long-term GIC in ING Bank to get high interest rate. ING Bank has also short-term GICs (3, 6 and 9 months). They also have good interest rates, quite often the best. To compare the interest rate in your bank and in ING, please, see the "ING Bank Services" Guaranteed Investment Confirmations - GIC.

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