ING Direct Savings Now 3.80%

ING Direct just made a small 0.05% increase to its Orange Savings Account rate. The new rate is now 3.80% APY. It ends the year at 0.20% below EmigrantDirect's rate. The predictions that I made last September were pretty close. I had predicted EmigrantDirect would remain at 4.0% and ING Direct would make a few small rate increases. I was a little off on my year-end rate for ING Direct. I had predicted a rate of only 3.70%.

New Years Prediction

My September's prediction regarding EmigrantDirect's rate was based on its rate history last year. It seems to make fewer increases than other banks like ING Direct. Twice last year it stood way above the rates of most other online banks. This was the case when it first started early in the year when it was offering 3%. It was repeated in September after a 0.5% increase to 4%. Both times, EmigrantDirect let the other banks catch up.

So it's about time for another major rate hike at EmigrantDirect. Perhaps the bank has so many deposits that it'll follow ING Direct and feel content to lag behind. However, it's easy for its customers to transfer their money to banks paying higher rates. So I still think EmigrantDirect will want to stay in the game. My prediction is for a 0.50% increase some time in early January. As for ING Direct, I see it continuing to make small increases, but it won't be anything to get excited about. I expect ING will be at 4.0% by early February.