Dedicated to Deposits: Deals, Data, and Discussion

ING Direct's Savings Account Now 4.50% - Lagging Continues


ING Direct raised the yield on its Orange Savings Account today from 4.40% to 4.50% APY. Perhaps they're feeling the competition from all the 5%+ online savings accounts that are now available. The last savings account rate hike at ING was in early September when the APY increased from 4.35% to 4.40%. We probably won't see any new savings account promotion from ING Direct like a new Winter Save Up Sale. Their next big promo will likely be the launch of their new Electric Orange Checking Account (see post).

The table below tracks how much ING Direct's savings account rates have lagged the rates from HSBC Direct and EmigrantDirect for the last year and a half. A snap shot of the rates are captured at the end of each month. For example, at the end of August of 2006, ING Direct's APY was 4.35%, EmigrantDirect was at 5.15% and HSBC Direct was at 5.05%. So in this case, ING lagged HSBC by 70 basis points and Emigrant by 80 basis points.

How Much ING Direct has lagged
by basis points

HSBC Emigrant
05/31/05 0 25
06/30/05 0 25
07/31/05 10 35
08/31/05 20 20
09/30/05 35 60
10/31/05 35 60
11/30/05 50 50
12/31/05 45 20
01/31/06 100 45
02/28/06 100 45
03/31/06 80 50
04/30/06 80 50
05/31/06 40 40
06/30/06 70 45
07/31/06 70 80
08/31/06 70 80
09/30/06 65 65
10/31/06 65 65
11/29/06 55 55

The above table doesn't take into consideration ING Direct's Winter Save Up Sale early this year since that promotion was limited to only new deposits.

Before long I might have to start a new table showing how much HSBC and EmigrantDirect have lagged some new online banks like E-LOAN. Ideally, the ease of moving money between online banks should prevent the older online banks from getting too complacent. However, there's always a hassle-factor for opening a new account. Also, there's the concern about the new bank's online banking system. Will it have glitches like what we saw with E-LOAN? So HSBC and Emigrant could be safe if their competitors don't offer rates too much higher. The latest new no-minimum savings accounts is which is offering a 5.30% APY (see post). That's 25 basis points above HSBC and Emgirant. It's not a large difference, but it's significant.


Comment #1 by shrazzy (anonymous) posted on
:) can't wait to see details on their checking. Especially if there's no fee for any balance

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Here's my new post on this checking account.

Comment #19 by Anonymous posted on
Here are some more referrals…….

Remember, bonuses are only paid for accounts that are opened with an initial deposit of at least $250. Initial deposit does not include bonus. The $25 bonus is available only for new accounts with a new Customer as primary owner.

Orange Savings Account. PS: If you see this message: “We are very sorry we can’t complete your request at this time. Please try again later.”

Just refresh the page or go back to my post and try another link.