ING Direct Lowered Orange Savings Account Rate to 2.75% APY

Well, it didn’t take long for banks to follow the Federal Reserve’s surprising rate cut yesterday to lower their own rates. As I mentioned early, the rate cut, from 2.00% to 1.50%, didn’t help to save the stock market as the Dow took another 2% hit yesterday, but one thing sure to happen is lowered interest rates we will get from commercial banks where we put our money at.

Now ING Direct becomes the first bank that I follow quite closely to reduce its Orange Savings Account rate to 2.75% APY from 3.00% APY. Rates for the Electric Orange Checking Account are also changed as follows:

  • $0-49,999.99: 1.50% APY
  • $50,000.00-$99,999.99: 3.05% APY
  • $100,000.00 or more: 3.25% APY

You can expect more rate reductions from banks you use everyday in the coming days if not weeks. Seriously, if you want to lock in a good CD rate when it’s still available, the time to act is now. BTW, you can check the latest online savings and checking account interest rates to see if you can find the bank you like.

Speaking of CDs, HSBC Direct just announced a new, 6-month CD that pays 4.00% APY. That’s a very attractive rate for locking up the money for only 6 months. The CD is FDIC insured, which is very important now, and requires a minimum of just $10. Check it out if you are interested.

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4 Responses to “ING Direct Lowered Orange Savings Account Rate to 2.75% APY”

  1. Cynical Sickle |  Oct 09, 2008 at 2:34 pm

    Have you looked into or heard of the Schwab Bank High Yield Investor Checking with a Schwab One Brokerage Account. You can find info about it off a clickable image off their main page at http://www.schwab.com I’ll also cut and paste the whole url but I don’t know if it will transfer right due to it being SO long.

    http://www.schwab.com/public/schwab/home/account_types/brokerage/schwab_one_with_ic.html?cmsid=P-1778106&lvl1=home&lvl2=account_types&refid=P-2722463&refpid=P-997178

    * Earn 2.20% variable APY— that’s 5 times the national average.
    * No ATM fees. We reimburse any ATM fee you are charged— worldwide.
    * Enjoy free standard checks, free online bill pay and a Visa® Platinum Check Card.
    * Get full-featured FDIC-insured checking for up to $100,000.

    It started about a year ago I think, back then they were doing 4%, it was down to 3% before the rate cut, now at 2.20%. However it’s a checking account and you get unlimited free checks. Literally unlimited if you use the standard checks. I called about using a checkbook a month (25-30 checks) and they said any amount is fine I could reorder as often as I needed. With savings accounts I believe you are limited to how often you can withdraw a month. Also $0 minimum on the account. Only available to US residents though.