It’s time of novelties for ING Direct, that launches two new products. First one is Conto Arancio+, that in practice is similar to a repo, and money is tied up for 6 or 12 months. Conto Arancio+ offers a slightly lower rate compared to similar products (IWBank‘s IWPower30/60/180 or Fineco‘s SuperSave), but it is interesting that Conto Arancio+ allows anticipated withdrawal, acknowledging Conto Arancio standard interest rate, while most of the competitors do not acknowledge them. Therefore we can see it as a “less bounded” investment, and a lower interest rate is a consequence.
Conto Arancio+ main drawbacks, in my opinion, are on lower limits on sum you have to invest: minumum of €10,000. And to get the maximum interest rate you have to invest at least €50,000. In short, this is not for everybody.
In detail, interest rates offered by Conto Arancio+ are the following:
- 6-months investment, from €10,000 to €50,000: 3,75% (before tax);
- 6-months investment, over €50,000: 4,00% (before tax);
- 12-months investment, from €10,000 to €50,000: 4,00% (before tax);
- 12-months investment, over €50,000: 4,50% (before tax).
Bilancio Arancio is a new investment fund in the “Investimenti Arancio” family: we spoke about it a few weeks ago, anticipating its creation, and now shares can be bought on ING Direct Italian website. Bilancio Arancio is a balanced fund, i.e. a fund that diversifies portfolio investing in stocks, bond and a money market (usually with either a moderate or conservative approach to risk). As every Investimenti Arancio funds, Bilancio Arancio distributes coupons and dividends.
The flexibility allowed by this kind of fund is definitely interesting, but since the fund manager has a very high freedom (basically, he can invest money nearly in any way he wants), I think it’s important to better understand management style, that means it may be useful to wait a little before investing in it.
Italian translation of this post: Arrivano Bilancio Arancio e Conto Arancio+
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