ING Direct Raises Non-Promo Savings Account APY to 4%

Just a few hours after speculation about ING Direct's non-promo yields remaining at 3.80%, they finally do an increase. ING Direct's Orange Savings Account now pays 4.00% APY. This is the first savings account rate increase for this year. The last increase of the non-promotional rate was December 31, 2005 when the yield increased from 3.75% to 3.80%. The promotional APY of 4.75% remains on new deposits through April 15th (see ING Direct). The Winter Save Up Sale has been going on since January 19th.

At least ING Direct is making some attempt to keep its standard rates competitive. Unfortunately, the 4.00% is not much better than 3.80% especially when many others are offering no-minimum savings accounts with yields of 4.50% and over. I'm sure ING is hoping people who opened accounts and moved their money into ING will just let the money sit there after the sale. Even if just a quarter of the people do this, the sale will probably have been a success for ING Direct. I wonder if EmigrantDirect is planning for a big rate hike in mid April. This would be a perfect time for a 0.5% rate increase on its savings account.