ING Direct raised the interest rate the bank offers on its savings accounts, resulting in a 4.35% APY. This is good news, hot on the heels of the Fed’s raising of interest rates yesterday. Millions of people will benefit from ING Direct’s move, as this particular bank is one of the most popular for “online savings accounts.”
If someone is starting a new savings account, I would suggest one of these banks instead. ING Direct has lagged behind the pack in terms of interest rates for along time now.
Meanwhile, HSBC Direct is up to 5.05% APY.
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I would disagree. If you take only interest rate into account, ING lags, but as with all issues of personal finance, you need to look at all aspects. ING is still by far the easiest account to open and for those who have never opened an account, ING is a good way to ease yourself into online banking, especially if you are still new to computers. I also think that the $25 bonus ($50 during tax time) you can get for opening an ING account makes it a no brainer and you can always switch that money out to a higher interest account. Yes, it a perfect world, ING would also pay the highest rate, but I still think for many it is a great account to open, especially for a first account.