Comments on: ING Direct Lowered Interest Rates

By: HSBC Dropped Rate for Online Savings Account | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing

Wed, 26 Sep 2007 19:08:42 +0000

[...] cut. The 55 basis points reduction is by large the largest among major online banks. Last week, ING Direct reduced interest rate for its Orange Savings account by 0.20% to 4.30% APY. HSBC’s change put them essentially at [...]

By: Sun

Sun — Wed, 26 Sep 2007 01:51:03 +0000

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.

By: sl

sl — Sun, 23 Sep 2007 12:51:01 +0000

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.

By: Investing » ING Direct Lowered Interest Rates

Investing » ING Direct Lowered Interest Rates — Fri, 21 Sep 2007 21:00:05 +0000

[...] unknown wrote an interesting post today onHere’s a quick excerptGot 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, … [...]

By: Top High-Yield Savings Accounts: Interest Rates And Some Thoughts

Top High-Yield Savings Accounts: Interest Rates And Some Thoughts — Fri, 21 Sep 2007 11:45:48 +0000

[...] accounts will follow suit and decrease the interest rates offered on deposits. In fact, a couple of fellow bloggers reported yesterday that ING Direct has already reduced it’s savings account interest [...]