January 7, 2012

ING Direct - High Interest Rate Savings...Or Is It?

It's been awhile since I've talked about ING Direct.  The last time was when ING was sold to Capital One here.  Probably one of the most unliked banks out there.
I decided to keep our savings there, because it was still a higher interest rate than most banks or credit unions were offering for a savings account.

Today, once again, they lowered the interest rate for my 'high interest' savings account.

I went back in my ING account to see what the interest rate was when I opened it and the changes that have happened since the account has been open.

08/06/2009 - 1.40%
09/09/2009 - 1.30%
01/08/2010 - 1.25%
02/04/2010 - 1.20%
02/18/2010 - 1.15%
03/02/2010 - 1.10%
02/23/2011 - 1.00%
10/21/2011 - 0.90%
12/03/2011 - 0.85%
01/06/2012 - 0.80%

In almost 2.5 years it has dropped 0.60% almost HALF of where I started.  I can't even imagine what folks are thinking who had an account with ING when it was close to 4.00%.

I'm just curious.  Right now I get about $2.50 in interest for the funds that I have currrently (and it increases $40 every 2 weeks).  IF it had stayed at 1.40% I would be bringing in close to $4.50 a month.  I know, I know, it's not much but really???? 

I'm definitely going to have to do some research on what should be the best option for us.  Do I just leave it where it is? Or do I move it somewhere else?  Is anyone else even offering an interest rate that high or higher?

*sigh* I love how creditors will raise your rate to something outrageous, so that THEY make money, but if you're good and save money, they offer as little as they can.  Greed at it's finest.


LBC Teacher said...

Interest rates are set by The Fed, so in ING's defense, it's not all their fault. The interest rates are low to encourage borrowing as a way to stimulate the economy, which sucks for savers right now. I definitely miss the 4% days too, hopefully they'll come back around at some point!

jpkittie said...

oh my goodness! that is horrible - what a bummer!!!!

Mysti said...

I have ING accts too...and yes, it is sad how much they have dropped!

Tanner said...

Wow, that's quite a drop. I just recently opened my first IGN savings account. I have $325 on it, and I am getting some cents back in interest. I know it is nothing, but considering I was getting $0 a month, I'll take it! It's funny you posted on this topic, and there I was getting all excited over a few cents this morning.

I'm interested to see what you find in your research, so please let us know. I have been considering moving all of my $1000 EF to ING, but I am not comfortable with the 5-day wait before money is transferred out, since when my emergencies do strike, they require immediate payment.