I was just checking my ING savings account and I noticed that their rates dropped again. Savings is now at 3.10% APR. I still love ING and I’ll deal with it. When I started with ING the rate was around 2%. It had even dipped below 2% for a bit. All this and their rates have still been much higher than standard brick-and-mortor savings accounts.What kills me is their CD rates dropped too! A 6-month CD is now 3.00% which is lower than their savings. To get get a better rate you have to jump to a 60-month (that’s five years for those of you who don’t want to do the math) which offers 3.25%. I think rates will go up long before five years so I’m not locking in 3.25% for that long. But I have a CD that’s maturing and right now it seems my best bet is to put it back into my savings or check out other bank CD rates.
Now here’s the kicker (and the rant) – I was working on a post since yesterday about how we set up our CD’s in ING. We’ve been using a modified CD ladder with one year CD’s spaced out every three months. This has been working great for us. Well the new rates blow that theory away since it’s not worth buying CD’s right now. I believe rates will rise soon enough so we’ll be investing in CD’s again. I think I’m actually more frustrated about the post than the bank rates.
Fed – Raise your rates! We don’t need to spend more! Our country needs to shore up it’s savings. We’ll spend again once we can actually afford to. Economically we’ll be much better off in the long run.
How do you feel about the declining bank rates?
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{ 8 comments… read them below or add one }
It is a tough issue with what the Feds are doing cutting the rates like wildly. We do have to keep in mind the Feds managed to keep the rates at around 5 percent for nearly 2 years.
It is not really the Feds to blame for the rates but rather the loose controls we had on the sub-prime loans that is more to blame. The real source is the liquidity, everyone wants cash, not assets so when banks are lending money out, they expect cash in repayment and no one has the cash because it was all loans.
Never fear, one day the rates shall rise again. ING has a strong business model for their interest rates. It is still far better than most banks.
Perhaps you could still do the post and add a section on what points in an economic cycle are the best for doing CD-ladders, etc. I also hate to waste a good post.
I’m consoling myself that my money was earning 0.20% in my old stupid account, so even dropping savings rates are better than that.
I use ING, GMACbank and emmigrant direct, and finally settled on amtrust bank. Their interface is horrible, but they usually have the best rate. Also, if you set up a 3 month ACH before may 31, you will receive a $50 bonus.
Fatwallet.com has a sticky post with all the MMA rates.
I’m not happy about the dropping rates, but what can ya do? I’m just thankful that they are still higher than B&M banks.
Off topic – I came here from entrecard and saw that you’re from Fresh Meadows. I went to St. Francis Prep many moons ago!! =) I’m not in Florida.
I’ve been seeing a number of bloggers post about banking with ING. Now I’m intrigued. I think I may try them out. It sure would make it a lot harder for me to break into my savings account every time I need a few bucks
@ Locomono – I think the Fed has some blame to shoulder in this. Their rates have been very low for years which makes it possible for people to buy and build more homes. In many areas of the country housing development boomed but now it’s over saturated. This is due in part with the availability of cheap funds.
I agree that ING has a great model. It’s one that other banks are now trying to catch up with. Their rates will rise when the Fed rises.
@ Mrs Micah – I still have to post so I’ll probably find some way to re-work it. It was one of those about to hit publish moments that really annoys me.
If you don’t have an online high-yield account then get one. You’re right, even ING’s lower rates are much better than my BofA’s rates!
@ Dan – Thanks for the info Dan. I’ll check it out. I’ll admit, I’m happy with ING and I’m not sure I want to open up yet another account somewhere with another password I have to remember. Still, if there’s a good sign up bonus and the rates are higher…
@ Saph – Glad you dropped by! So EntreCard works then huh? I’m actually a few blocks from St. Francis. I run past there all the time!
You’re welcome to come back and comment anytime!
@ JMom – That right there is one of the reasons ING is so great! It’s too easy to dip into savings that’s attached to a debit card. With ING you have to wait a few days to transfer your money. You get into the mindset of forgetting you have that money which allows it to keep growing. If you’re interested I have a link for ING referrals which will give you a $25 bonus for signing up with $250 (I’d get a $10 bonus). Check out my post on it or email me if you have any questions.
Hi again, I just realized a typo. I meant to say I’m now in Florida. LOL
Yes, I’d have to say entrecard does work and I only signed up a few days ago. Well, it works as far as getting visitors but I can’t say if it has gained me any readers or not. At least I can say it’s given me way more exposure. =)
Also, your response to JMom is exactly why I’m using ING as my place to park my emergency fund right now.
I have heard (can’t remember which blog) that ING has dumped some customers that are high maintenance customers or those that withdraw large amounts of money out of their account. That being said I may open another online account just so I don’t have all my “eggs” in one basket.
@ Saph – Well, I found one new reader at least through EntreCard.
I haven’t heard anything about ING dropping customers. Perhaps these are people with really high balances?
I might consider another bank account. With rates so low now it’s worth looking into other accounts. I’ve been looking at Washington Mutual fro checking and savings. I’ll let everyone know if I open up any accounts with them.