I warned yesterday that more banks were likely to follow Chase’s lead in lowering interest rates for savings account customers. A few minutes ago, I received an email from ING Direct to inform me that the interest rate offered on the Orange Savings Account has been reduced to yield 2.75%.
Over the past few weeks, I’ve been moving more savings out of ING Direct and into other liquid accounts like the FNBO Direct savings account, currently at 3.5% APY, and the Vanguard New Jersey Tax-Exempt Money Market Fund (VNJXX), currently with a 7-day yield of 3.69%.
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{ 10 comments… read them below or add one }
What is the insured deposit amount for a FNBO account? They are FDIC right?
FNBO Direct’s savings accounts are insured by the FDIC, and the insurable limit for an individual account is currently $250,000 following the recent increase.
No notification from E*Trade yet, currently at 3.3%. I’ve stuck with them since the last huge round of drops dropped them from the 5% they were at. I like their quick transfers, and their website is more user-friendly. I really can’t stand ING’s. I’m not sure how long my 3.3 will hold up, but I doubt I will be moving unless the yield starts to differ by .75% or more.
I’m disappointed by ING Direct’s rate, but that’s how the “money business” is going lately. I haven’t ever looked into FNBO Direct, but I think I’ll probably stick with ING Direct for now.
How do you feel the two stack up against each other? (Aside from interest rates, of course.)
Edit: Ahh, never mind. I just found your FNBO “opening” post.
The “which internet bank is best” discussion has been beaten to death… but what the heck. I’m sticking with ING because of their customer service and security features.
They also dropped the CD rates… good thing I locked in one step of my ladder at 3.75% earlier this week.
I just opened my ING account and I don’t know if I should change to another bank I’d hate to have just opened the account and then close it.
Sha: I don’t think there’s any reason to close the account.
GMAC Bank has their savings account at 3.55% That is what I am using. Their MMA is at 3%
http://www.gmacbank.com/index.html
I sent ING a written request for a $100,000 withdrawal from my account. They said the check was mailed Oct. 1st. When the check had not arrived by the 7th I called and was told I would have to wait 14 business days before they would do anything. Since the 13th was a holiday for the post office I had to wait until the 14th and the check still did not come. Now they are telling me I have to wait another week while they stop payment and reissue the check. Another thing is they had only mailed $21,000, the amount I can take without penalty. They completely ignored my written request and could not tell me why. What do you think is really going on with ING?
The Dutch ING Groep, owner of the commercial bank ING Direct dropped its value 27% in Amsterdam stock market amid rumors of an intervention from the Netherlands government. They have lost € 500 million in the second quarter (summer) of 2008. They may need an injection of € 12,000 million, since their solvency ratio is now 8.5% (4% is the minimum) midway to the optimum 12% recommended now by the analysts.
http://www.elmundo.es/mundodinero/2008/10/18/economia/1224331365.html (in Spanish)
I personally like ING direct and consider that there is no reason to “freak out” and retire your funds from your account.