ING's money market fund falls short for parking cash

ING's money market fund falls short for parking cash in the short term

Anyone with money at ING who needs access to it between late 2026 and early 2027 faces a dilemma: one-year deposits are ruled out and the orange savings account barely yields anything. The temptation to use the bank's own money market fund is natural, but an analysis of the fees and the alternatives available gives pause for thought.

Fees that eat into returns

ING's money market fund, with a management fee of around 0.30% or more, is expensive compared to what the market offers. Today there are money market funds with fees below 0.10%, and even ETFs like XEON or Amundi LYXW that track short-term rates with minimal costs. Over a horizon of just a few months, that percentage difference noticeably reduces the final return.

Savings accounts and other funds as alternatives

Beyond funds, high-yield savings accounts have made a strong comeback. Openbank offers 2.5% APR, B100 up to 2.5% until the end of the year, and Trade Republic 2.25% with immediate availability. Even ING has launched a 3.5% three-month promotion for new deposits, though it only applies to new money. The key is that none of these options requires complicated moves: an instant transfer completes the move in minutes.

The painful calculation: how much do you lose by staying?

The difference between ING's fund and a 2.5% account may seem small in absolute terms, but on five- or six-figure amounts the gap becomes noticeable. For someone parking 100,000 euros for six months, the difference between an effective 0.30% fee (ING fund) and a net 2.5% (savings account) can exceed 1,000 euros. And that's without counting the inconvenience of a less liquid product. A detailed analysis, with concrete figures and timeframes, shows that the most convenient option is not always the smartest.

The debate makes it clear that, today, ING's money market fund is an option only for those who value above all the convenience of not moving their money. For everyone else, there are more profitable alternatives that are almost as immediate.