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%.
Updated June 16, 2011 and originally published October 9, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.