ING Direct Cuts Deposit Rates
Oct 9, 2008 - 10:41 AM by Ken Tumin
ING Direct's New Rates as of 10/09/2008:
Account APY
Orange Savings Account 2.75%
Electric Orange $0-$50K 1.50%
$50K-$100K 3.05%
$100K+ 3.25%
6-month CD 3.50%
9-month CD 3.50%
12-month CD 4.00%
18-month CD 4.00%
24-month CD 4.25%
30-month CD 4.00%
36-month CD 4.00%
48-month CD 4.00%
60-month CD 4.25%
ING Direct is known for its easy online interface rather than the best rates. However, it does have a few features that are not the best for an online bank. These have to due with their ACH transfer system. The downsides include:
- limit of 3 linked checking accounts
- Linked account must be a personal checking account, not a brokerage, money market or savings account
- ING Direct places a hold of 5 business days for deposits (initial deposit has a 10-day hold)
Please refer to my last ING Direct post for more details on ING Direct and its CDs.
ING Direct's bank deposit products are FDIC insured (FDIC Certificate # 35489)
Thanks to the readers who mentioned this rate update.
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Anonymous - #1, Thursday, October 9, 2008 - 11:10 AM
I can move just as fast as I placed order to transfer funds out today. I think Key lowered their Key Gold M/M Savings also. Its 2.50 now and I think it had been 3.00. Anyway 2.50 doesn't cut it with me so I transfered out of there also. Someone once said these are the times that try mens souls or bank accounts.
gaelicwench (anonymous) - #2, Thursday, October 9, 2008 - 11:48 AM
I managed to "lock in" their 18-month CD at 4.5%. Granted, it wasn't anywhere what I wanted, but that's in part to needing to pay off debt. Still, I am keeping my money at ING since it's probably not one of the 400 or so financial institutions in trouble.
Seems there's going to be a lot of weeding out the banks that are unstable, have been and will continue to do so, over the months to come.
Christina Goldman (anonymous) - #3, Thursday, October 9, 2008 - 12:37 PM
I have two ING CDs maturing on 10-29. I was hoping that the FED would hold off cutting rates until then but I guess that was wishful thinking! Who knows what the funds rate will be by the end of October!
Anonymous - #4, Thursday, October 9, 2008 - 1:14 PM
Any thoughts on which banks offering rates are the least likely to fail if the worst case scenerio occurs? I read today that Canadian banks have not been affected by the global credit crisis yet. Also been told HSBC is very stable.
Anonymous - #5, Thursday, October 9, 2008 - 1:22 PM
Business savings rate is 2.9%
Anonymous - #6, Thursday, October 9, 2008 - 10:09 PM
Time to leave $1.50 in ING & get out. Too bad, I like ING.
Anonymous - #7, Thursday, October 9, 2008 - 10:20 PM
Dollar Savings Direct - 4.00% APY with only $1K deposit requirement.
CNB Bank Direct - 4.00% APY rate guaranteed for at least 6 months. Only $1 to open.
Anonymous - #8, Thursday, October 9, 2008 - 11:20 PM
Take HSBC, which is paying 3.25% APY and has to pay for a whole bunch of branches and ATMs.... and still offers a higher savings account rate than ING
ING doesn't have to do any of this... They have a handful of "cafes", also where they happen to have their office centers.
And they don't even maintain their own ATM network.
And ING can't offer a higher savings account rate because...
Anonymous - #9, Friday, October 10, 2008 - 11:21 AM
Anonymous 9:20 PM, October 09, 2008 said...
ING can't offer a higher savings account rate because...
Um, 'cause they're business to make money? Wake up - this is not a credit union - you're a customer, not a member.
Anonymous - #10, Friday, October 10, 2008 - 6:43 PM
"Linked account must be a personal checking account, not a brokerage, money market or savings account"
I failed to read this when I opened up my ING Direct Electric Orange and linked it to my HSBC Direct Online Savings. I didn't realize it had to be a checking account until afterward. Fortunately for me, linking to my HSBC savings turned out to be just fine. So a few savings accounts may actually work as a link.
Anonymous - #11, Saturday, October 11, 2008 - 5:41 PM
"
ING can't offer a higher savings account rate because...
Um, 'cause they're business to make money? Wake up - this is not a credit union - you're a customer, not a member."
-----
INGDirect is a joke... Their whole tagline is "Save your money"... well, it's easier to do the "saving" part of it when you earn more interest on it... and given that they're only paying 2.75% when other banks are as much as 1% or more higher for savings accounts, ING must be doing something wrong if that's the best interest rate they can offer.
It's more like they're saving themselves money....
http://www.ingdirect.com/wethesavers/
Well... the money isn't growing very quickly at 2.75% APY. Lots of hype without the substance.
Anonymous - #12, Sunday, October 12, 2008 - 9:32 AM
Yeah, time to get out.
Avoid the ING rep in here (ING can't offer a higher savings account rate because...
Um, 'cause they're business to make money? Wake up - this is not a credit union - you're a customer, not a member.)
Their rates STINK, plain & simple.
Anonymous - #13, Saturday, December 27, 2008 - 4:31 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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