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Falling Savings Account Rates: ING Direct, EverBank, Zions Bank

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When the Fed lowers rates, ING Direct sure doesn't waste any time in following with rate cuts. Just like in September after the first Fed rate cut, ING Direct cut rates today on its savings account, checking account and CDs. I don't remember ING being this quick in 2005 and 2006 when the rates were going up. The Orange Savings account yield fell from 4.30% to 4.20% APY. For the Electric Orange checking, the yield fell from 3.50% to 3.25% APY for balances under $50K. The yields of the short term CDs fell to 4.80% APY. The 6-month yield had been 5% APY. There was actually one rate hike, and that was on ING's 5-year CD. That yield increased from 4.75% to 5.00% APY.

More disappointing is the rate drops at EverBank. They finally cut the 3-month promo from 6.01% to 5.51% APY. This 6.01% had been offered on the checking since September 2006. The standard rate for the money market account also fell by 50 basis points from 5.01% to 4.51% APY. This 50 basis point change is similar to the rate changes EverBank made when the rates were going up. Those who mailed in their application yesterday should be able to receive the 6.01% rate lock (see my EverBank review post).

Zions Bank also lowered the yield on its Deseret Money Market Account. This actually took place a couple of days ago. The top yield fell from 5.51% to 5.40% APY for balances over $50K. The yield for the low tier fell from 5.30% to 5.19% APY.

I expect more cuts to come. GMAC Bank usually does their rate changes early Friday. Hopefully, GMAC won't be in a hurry to cut rates like ING.

  Tags: ING DIRECT, EverBank, Zions Bank, savings account

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Comments
Comment #1 by Anonymous posted on
Anonymous
I wish the depositors at ING would send the bank a strong message by moving their money. They have gotten too big and complacent. Come on people, show ING your paying attention and don't appreciate their greed!

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Comment #2 by Anonymous posted on
Anonymous
ING didn't cut the rate today. They did it yesterday. God forbid they should wait a day.

I moved it last time. And since then got another $50 out of them by doing that NYTIMES offer for my daughter.

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Comment #3 by Anonymous posted on
Anonymous
Bankrate shows GMAC's MM rate at 4.5%. It'll probably post on the GMAC website in the morning. They may not be as quick as ING but they're not wasting much more time.

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Comment #4 by Benjamin Meyer (anonymous) posted on
Benjamin Meyer
I wish the depositors at ING would send the bank a strong message by moving their money.

Well out of all of the banks I have ever used, ING is the only one with a sane web interface. It is clean and simple and when I want to do something I can figure it it out. If I want to open a CD with then it is just three or four clicks. I might be able to get slightly higher rates elsewhere, but if their site is even half as annoying as Bank Of America's I will just say forget it.

So with that can anyone recommend an online bank with better rates that ING, but with as good of an interface?

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Comment #5 by Anonymous posted on
Anonymous
ING does all their stuff at midnight, central time. So the cuts showed up at 12:01am on Nov. 1. But here in Cali it was 10:01pm on Oct. 31.

Yeah, it's no good that ING drops their rates so fast, but they're sooo convenient... that is a big plus.

Does anyone know of a checking account like Electric Orange that has no minimums and a decent rate of return at all tier levels? And free ACH transfers, and free bill pay, and good customer service, and an easy-to-use website...

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Comment #6 by Anonymous posted on
Anonymous
ING Business Orange also dropped from 4.75 to 4.65

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Comment #7 by Anonymous posted on
Anonymous
"So with that can anyone recommend an online bank with better rates that ING, but with as good of an interface?"

UFB!! The interface is better and the rates are insanely better. Still holding steady at 5.31 with no minimums.

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Comment #8 by Anonymous posted on
Anonymous
iGObanking.com has a simple interface, and has a much higher rate on its savings account (5.17% APY). The initial application is a pain, but it maintains all the nice features of ING after that.

But is there an alternative to ING's Electric Orange? No one seems to have any suggestions.

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Comment #9 by Anonymous posted on
Anonymous
ING is for losers, and has been for some time.

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Comment #10 by virgquest (anonymous) posted on
virgquest
GMAC is down to 4.5% today. It's on their website now. :(

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Comment #11 by Anonymous posted on
Anonymous
Countrywide just slashed rates across the board. Dang it, I just opened an account on Wednesday.

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Comment #12 by Anonymous posted on
Anonymous
I know why ING wants me to keep my eye on that bouncing orange ball - they have their other hand in my pocket! Hey, ING! enough with the friggin' commercials and marathon sponsorships - you'd better learn to dance with the one that brought you - before the rest of your big depositors seek a little love elsewhere.

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Comment #13 by Anonymous posted on
Anonymous
Umbrella Bank seems to have better rates for interest checking (3.75%) than ING (3.25%).

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Comment #14 by Kevin (anonymous) posted on
Kevin
It looks like Zion lowered their rates. I am in the $1,000 to $49,999 tier and am only making 4.86% APR.

See http://www.zionsbank.com/deseret.jsp?cid=2218

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