With the Federal Reserve raising their rates to 4%, ING Direct increased their interest rate from 3.4% to 3.5%. This is still a half point below Emigrant Direct which is offering an interest rate of 4.0%.

I don’t think that Emigrant will be raising their interest rate with the Federal Reserve’s move and ING hasn’t raised their rate enough to put any pressure on Emigrant to do so. There is a constant debate going on in regard to whether ING or Emigrant is the better bank with ING getting high marks for ease of use and Emigrant for higher interest rates. I can’t weigh in on Emigrant because opening an account with them from Japan proved to be impossible whereas I was able to do so easily with ING.