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 of 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.
Update: Check out the latest online savings and checking account interest rates from major online banks for the best deal available.
Related Articles You Don't Want To Miss
- E*Trade Raise Rates on Complete Savings Account: Interest Rates Bottomed?
- ING Direct Lowered Orange Savings Account Rate to 2.75% APY
- Online Savings Account Interest Rates History
- Is the Fed Going to Determine Savings Account Interest Rates?
- WT Direct and Emigrant Direct Interest Rate Update
- Best Online Savings & Checking Accounts Interest Rates
- Fed Lowered Interest Rate in an Attempt to Halt Stock Market Free-fall
- FNBO Direct Followed Suit, Up Interest Rate
Trackbacks & Pingbacks
- Pingback by Top High-Yield Savings Accounts: Interest Rates And Some Thoughts on September 21, 2007 @ 7:45 am
- Pingback by Investing » ING Direct Lowered Interest Rates on September 21, 2007 @ 5:00 pm
- Pingback by HSBC Dropped Rate for Online Savings Account | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing on September 26, 2007 @ 3:08 pm
5 Comments
Sorry, the comment form is closed at this time.
The drop appears illogical. The Feds drop the rate for the banks to borrow. This should boost the rate they offer for savings since their profit margin has increased. The banks are in the business of making money not teaching or following economic theory.
sl: What I think is that when we deposit money in the bank, we are lending them the money at the interest rate they pay us. If they can borrow the money at 4.75% from the Fed, there’s no reason for them to pay us 5.30% theoretically. So as the Fed funds rate is lowered, the banks could lower the interest rates they pay us as
well, though may not at the same scale.