Fed raises rates to 4.75%

[coffeebreak]

The Federal Open Market Committee raised the funds rate to 4.75% today:
http://www.federalreserve.gov/fomc/fundsrate.htm

Some believe that there will be one more increase in May to 5% then nothing for the rest of the year.

[shelbylovesmelby]

it's hard to say what they'll decide

though I thought I read somewhere that the savings bonds rates were going to drop in May! Those "I" bonds are pretty high right now. I really need to get some ordered before then.

[BTC]

ING might raise their yield to 3.805% as a result of this move.

[Ima saver]

Can someone give the rates for all the banks we talk about?? I get them confused.

[sweeps]

Originally Posted by Ima saver

Can someone give the rates for all the banks we talk about?? I get them confused.

Link

[sweeps]

Originally Posted by BTC

ING might raise their yield to 3.805% as a result of this move.

lol.

There are rumblings that ING might do another "new money" promotion -- perhaps 5% this time. If this is the case, anyone who is in ING may want to withdraw their money now so they can take advantage of it when the promotion is announced.

This is purely speculative of course.

[coffeebreak]

Originally Posted by Ima saver

Can someone give the rates for all the banks we talk about?? I get them confused.

The 'Fed' is the federal government.

Here's a list sorted by APY:
http://www.bankrate.com/brm/rate/mmm...ct=33&sor t=2

[coffeebreak]

Originally Posted by BTC

ING might raise their yield to 3.805% as a result of this move.

They certainly are lagging behind everyone else aren't they?

If they don't offer something that is at least close to what's available elsewhere, they are going to hear a loud sucking sound as people withdraw their money.

I have NEW money there now but I'm prepared to withdraw after April 15. Any offer would have to include OLD money or I'm gone.

[BTC]

I've already scheduled withdrawals from my ING account effective 04/17. The speculative 5% rate will probably go into effect on 04/16.

[sweeps]

Originally Posted by BTC

I've already scheduled withdrawals from my ING account effective 04/17. The speculative 5% rate will probably go into effect on 04/16.

Why would you withdraw after the new promotion goes into effect? Your money would be considered "old money". It would be better to withdraw on 4/14, and then deposit all your money back on 4/17 after the new promotion is announced. That way all your money will be "new money". (But again, all this is hypothetical.)

ING really blew it on this promotion -- all it's going to do is encourage people to leave in order to get the next best promotion. Phone companies are notorious for doing this too. New customers get the awesome deals while existing customers are left for dead.

[BTC]

Originally Posted by Sweepsplayer

Why would you withdraw after the new promotion goes into effect? Your money would be considered "old money". It would be better to withdraw on 4/14, and then deposit all your money back on 4/17 after the new promotion is announced. That way all your money will be "new money". (But again, all this is hypothetical.)

I didn't really plan to withdraw after the new speculative promotion goes into effect. I actually had heard nothing about it until I read your post. April 17th was simply the earliest I could schedule a withdrawal after the current promotional period ends on 04/15. I was just saying that their new promotion, assuming they actually have one, will probably start on 04/16, in which case I wouldn't be eligible if I withdraw on 04/17.

[coffeebreak]

Originally Posted by Sweepsplayer

Why would you withdraw after the new promotion goes into effect? Your money would be considered "old money". It would be better to withdraw on 4/14, and then deposit all your money back on 4/17 after the new promotion is announced.

Well, thanks for that tidbit. I hadn't thought of that. Whether they include old money or not (I don't know), it would be better to withdraw before April 15 no matter what they decide to do.

They may come up with something before the 15th though just to keep people from withdrawing right before the deadline. They aren't talking about the 4.75% anymore so maybe they'll announce something soon. It's easy to transfer money out so they better not play games.

Just a guess but I think there won't be a new offer and they'll raise their rates to 4.2%.

[coffeebreak]

Well I was off a bit. ING increased their rate to 4% today. Not enough. I am going to move my money back to ED and buy a 6 month CD from GMAC.

[BTC]

I was off by .195 APY on my ING guess. They're starting to get serious.

What is the six month yield on GMAC CD's?

[Ima saver]

Thanks, coffee break, for that link above!

[coffeebreak]

Originally Posted by BTC

I was off by .195 APY on my ING guess. They're starting to get serious.

What is the six month yield on GMAC CD's?

It's 4.95% with a $500 minimum. That's better than most I've seen.

Here's a link to GMAC's CD rates:
http://www.gmacbank.com/cd-rates.do

[coffeebreak]

Originally Posted by Ima saver

Thanks, coffee break, for that link above!

Put that link in your 'links' so you can visit the site a few times/week. It's part of my morning internet travels.

[CJsoccerchic]

If taking money out of ING on the 14th, I think you lose your chance at getting any of the "winter sale 4.75%" because when the 15th rolls around - you won'thave any new money in there? Why not take it out NOW? and see what the deal is around the 17th? Maybe they'll launch the new promo by thenif there is a promo to begin with. I would rather have ALL my money be considered NEW and earn the great interest rate that we all are speculating they might have!!
I hate wondering what they are going to do - I'd rather know then guess!!!n
Just my thoughts on the ING thing..

[sweeps]

CJ, the idea was that the new promotion would begin on the 15th, so taking your money out just before then would make it eligible to be new money again.

But the point may be moot anyway. The current rumor is that ING is going to stick with a flat 4% and not pull another promotional stunt.

I just don't understand why people are so attached to ING. I know they were one of the early pioneers in this high-yield savings account thing, but they are all washed out.

[zabbkoff]

I remember when ING was on par with the interest rate.... what happened? On that note, I am thinking of adding an HSBC or ED account to try to keep the best rates, but was wondering if there would be any problem linking my ING account to the new online account? I'd like to keep transfer time to a minimum.

Thanks for any help!