ING Direct Lowered Interest Rates

Got an email from ING Direct this morning with their new interest rates less than 24 hours after the Fed cut its benchmark interest rate. The ING Orange Savings account used to pay 4.50% APY. The new rate, effective September 19, 2007, is 4.30% APY. Meanwhile, yields for their Electric Orange checking accounts are also lowered:

• $0-49,999.99 earns a 3.50% APY
• $50,000.00-$99,999.99 earns a 4.90% APY
• $100,000.00 or more earns a 5.00% APY

It probably won’t be long before we see other online banks drop their savings rates to reflect the changes. When rates were going up, it could take banks weeks or even months before they made the change, if at all. Apparently, they won’t waste much time to reduce the rates.

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