ING Direct Raises Savings Account Rate
Sep 23, 2005 - 7:34 AM by Ken Tumin
ING Direct made a modest increase to its savings rate early this morning. The APY went from 3.30% to 3.40%. After EmigrantDirect raised its savings account rate from 3.5% to 4.0% last Tuesday, I had been predicting some increase at ING this week. However, I thought ING would at least raise the rate to 3.5%. I'm surprised they raised it to only 3.40%.
ING Direct's Interest Rate Trend
One thing that I've noticed this year by charting out ING's interest rate changes is that ING tends to increase their savings account rate in multiple small increments. For example, in late July, ING's savings rate went from 3.0% to 3.15%. Then a few weeks later, it went to 3.30%. EmigrantDirect, on the other hand, just made one increase in late July from 3.25% to 3.50%. This trend seems to be continuing.
I suspect EmigrantDirect will not change its savings rate for the rest of the year. ING will likely do two or more small increases. Perhaps ING is playing it safe. If the economy starts having problems due to the hurricanes or other reasons and the Fed ends its tightening policy, ING can just stop the increases. If the economy turns out okay and the Fed continues to raise rates, ING can also continue to raise the savings account rate.
By the end of the year, I wouldn't be surprised to see ING at around 3.70%. But I don't see ING coming close to EmigrantDirect's 4.0% rate any time soon.
ING Direct's Interest Rate Trend
One thing that I've noticed this year by charting out ING's interest rate changes is that ING tends to increase their savings account rate in multiple small increments. For example, in late July, ING's savings rate went from 3.0% to 3.15%. Then a few weeks later, it went to 3.30%. EmigrantDirect, on the other hand, just made one increase in late July from 3.25% to 3.50%. This trend seems to be continuing.
I suspect EmigrantDirect will not change its savings rate for the rest of the year. ING will likely do two or more small increases. Perhaps ING is playing it safe. If the economy starts having problems due to the hurricanes or other reasons and the Fed ends its tightening policy, ING can just stop the increases. If the economy turns out okay and the Fed continues to raise rates, ING can also continue to raise the savings account rate.
By the end of the year, I wouldn't be surprised to see ING at around 3.70%. But I don't see ING coming close to EmigrantDirect's 4.0% rate any time soon.
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Anonymous - #1, Friday, September 23, 2005 - 1:46 PM
Apart from doing referrals, what is the point of keeping an ING account open? Emigrant has paid a consistently higher rate since January 2005. Also, ED's ACH transfers are a tad faster. ING is a dead duck IMHO.
Banking Guy (anonymous) - #2, Friday, September 23, 2005 - 5:28 PM
Besides referrals, the only other advantage that I see is ING's CDs. ING makes it very convenient getting a CD with money from your savings account, and there's no minimum. If you have some money that you don't need for a year, it may be better to put it into an ING CD rather than ED's savings account. However, like ING's savings rate, the CD rates are above average but not the best.
Anonymous - #3, Saturday, December 27, 2008 - 4:35 PM
I've had my ING Direct account for a couple of years now and the experience has been great. They even offer a bonus for new customers. When you open an account for at least $250 (only by using the referral), you will receive a $25 bonus from ING. If you would like a referral, please send your full name and email address to andy7984@aol.com.
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