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Old 01-25-2006, 08:11 AM
coffeebreak coffeebreak is offline
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Default Re: ING is paying 4.75% until April 15, 2006

Quote:
Originally Posted by goodtosave
As I understand it, the offer is only for funds transferred between 1/19/06 and 4/25/06. After 4/25/06, the rate goes back to regular ING Direct's rates.

However, if you only intend for this to be a temporary move, consider the 2 days of lost interest when you move money in and out of ING Direct.

And you will lose 1 day of interest when transferring funds out of ED.

So for 10K, you will gain an additional 18.75(assume 3 months) - 3.29 for 3 days of lost interest. So your net is about 18.50 for 3 months.

However, my hunch tells me that ED will raise its rates to 4.25 before or after the Fed meeting in a few days. If that's the case, then you will net gain about 9.20 for 10K during this period.

Just something to consider.
It took about 24 hours to get money out of ED and into ING; this time. The calculator mentioned below your post says that I need to keep the money in ING for 5.33 day to break even. If it's 2 days then it will take 10 days. A 3 day transfer would take 16 days.

I am a bit surprised that ED didn't raise their rate after the last fed increase. I hope the next rate they offer will be 4.5%. I am going to see what happens at the end of my time with ING before I make a decision about where to keep my savings. It's too easy to transfer money for ED to fall behind the pack.
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