ING Direct lowered their interest rates on a number of bank products yesterday.  It hasn’t been all that long from ING’s last rate drop which I wrote about on December 30th, 2008, so I’m guessing this answers my previous question regarding how frequently ING changes its rates.  More often, but smaller sized changes.

As a short summary, savings and checking rates dropped by 0.10% APY although the lowest tier of checking rates remained unchanged.  CD rates dropped across the board by 0.25% for all terms.   All rates are effective 2009.01.20 and my previous numbers are from 2008.12.30.   Here are the current rates by account type:

• The Orange Direct Savings account dropped to a 2.40% APY (previously 2.50% APY).
• A 6-month CD, the shortest term they offer, has dropped to a 1.75% APY (previously 2.00% APY).
• A 9-month CD is now 2.00% APY (previously 2.25% APY).
• All other terms of CD (12 months to 60 months) are now 2.50% APY (previously 2.75% APY).
• Electric Orange’s rate for less than $50,000 stayed the same at 0.50% APY, but…
• Electric Orange’s rate for $50,000 to less than $100,000 dropped to 2.50% APY (previously 2.60% APY), and…
• Electric Orange’s rate for above $100,000 dropped to 2.70% APY (previously 2.80% APY).

As FNBO Direct still has their 2.80% savings rate, we’re back to almost a half-percent spread between them and ING.  But I’m still of the opinion that ING’s website and policies are well worth that difference if you need anything more than super-rare access to your money.   Since our only cash on deposit at FNBO is our emergency fund’s cash-position, we can leave that there until we finish moving it into our CD ladder.

We do need to investigate some other high-yield options like WTDirect, Dollar Savings Direct, etc.  The latter is particularly interesting with an advertised 4.00% APY rate though it has a $1,000 minimum to open and I can’t seem to find out more details such as if it’s tiered, or that’s just an intro, etc.  More research to do!  Any one have any advice?