ING drops OSA interest rates again!

February 18th, 2009 · 1 Comment

I just got an e-mail indicating that ING Direct has lowered the yield on their Orange Savings Account by about a third of a percent to 1.85% APY.  Two shocking things about this to me.  First, this is the fourth rate drop since late December, 2008 when the yield was 2.75% APY.  And second, this is the lowest rate ING Direct has given since 2001!

ing-eoHow do I know it’s the lowest rate?  Well I’m trusting ING’s own chart of rates, which admittedly may be a little fishy since the page claims to have been updated for effective rates as of 2/18/2009 (today) but doesn’t show the current rate being 1.85%.   Ignoring that though, it looks like the previous lowest rate ING paid was a 2.00% APY.

As a short summary, since the last time I wrote about ING dropping rates, savings and checking rates dropped by at least a 0.35% APY, although the lowest tier of checking rates remained unchanged.  CD rates dropped by at least 0.50% APY across all terms.   All rates are effective 2009.02.18 and my previous numbers are from 2009.01.20. (Note that I missed writing about a small rate drop between then and now but I know the APY on the OSA went from 2.40% to 2.20% in there somewhere.)  Here are the current rates by ING account type:

  • The Orange Direct Savings account dropped to a 1.85% APY (previously 2.40% APY).
  • A 6-month CD, the shortest term they offer, has dropped to a 1.25% APY (previously 1.75% APY).
  • A 9-month CD is now 1.25% APY (previously 2.00% APY).
  • All terms between 12 months and 36 months are now 1.75% APY (previously 2.50% APY).
  • The longest terms of 48 and 60 months are now 2.00% APY (previously 2.50% 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 1.95% APY (previously 2.50% APY), and…
  • Electric Orange’s rate for above $100,000 dropped to 2.15% APY (previously 2.70% APY).

The spread in APY between online savings accounts at FNBO Direct and ING is now 0.75% which is more than enough that we’ve moved all our non-spending cash to FNBO.  That is, the cash left in our emergency fund is parked there until it gets used to buy a CD in the CD ladder.   Our spending cash is still at ING though, as we find their site much easier to work with, particularly the ease of opening new savings accounts so that we have one per category of spending money.

Perhaps we should consider parking our money in Mexico where it seems you can earn a 12% APR in just 90 days?

Tags: Savings

1 response so far ↓

  1. 1 ING Direct’s new interest rate cut | Geographic Independence // 2009.03.03 at 6:50 pm

    […] following rates are effective 2009.03.03 and my previous numbers are from their last change on 2009.02.18. Here are the current rates by ING Direct account […]

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