interest rate suckers

[reptile411]

So in the past 6 months I opened 2 new accounts with close to a 3% rate with $1.00 minimum to open and obtain rate. I was told by my father they just sucker you with a good rate then drop it when they have your money. Of course I thought no way but now I see those 2 banks closer to the 2% range and emailed one yesterday. here is there reply. A bunch of crap or no?

Hello XXXXX,

Every Customer receives the same rate on the Orange Savings Account.

This country is in one of the most challenging economic environments it has ever faced. While we have lowered our rates, we are still 5 times higher than the national average. We've never been more committed to delivering the value you've known and can continue to count on from ING DIRECT.

The Orange Savings Account has a variable rate, which means we can adjust it when we have to. All of our rates are based on market conditions and competition. Currently, the Orange Savings Account is yielding 2.20% APY.

While you may come across other institutions with a higher rate of return, you may be required to pay fees or keep a minimum balance that would ultimately lead to a lower return. Compare this to the Orange Savings Account, which has no fees and no minimum balance requirement, and know that we strive to make sure things are easy and efficient so we can remain the smartest way for you to save money.

Thank you,
Kara

ING DIRECT USA
Member FDIC
Equal Housing Lender

[sweeps]

I feel your pain, but honestly 2.2% is a gift in this zero-interest-rate environment.

[reptile411]

Oh no don't get me wrong its still a great interest rate and 2% higher than my normal savings but common the 3% was much much better. its the reason I opened the account. My HSBC account is still .20% higher than this one so I am thinking of moving my money there. It seems to me I would want my money wherever it is going to pay me more to sit. My goal is to eventually live off my investments so it would make sence not to leave money in an account that pays less than another. after all I just need to leave $1 there to keep the account. I guess I can always move my money back if there rate goes back up agan..

[kork13]

I'm in your same boat--disappointed with the rate drops (of ING in particular, since I am with them as well), but it's nothing that we can control or influence. Really, the best way you can demonstrate your dissatisfaction with a company (if you want to do that) is to move your business elsewhere, and let them know about it. I have a loan I'm finishing up next month, and that's exactly what I'm going to do--close out the loan 3 years early, and write them to say they won't get my business in the future. Simple as that....

[GREENBACK]

My EF is with ING and I don't really pay attention to the interest. They are very customer friendly in my experience and that's worth a ton to me and a tiny fraction more interest with another bank isn't worth it for me. In terms of straight savings accounts you just aren't going to get much more than 2% until the economy recovers.

The banking industry has always been good about offering teaser rates for everything so this isn't anything new.

[reptile411]

I agree they are friendly, I have used them for my investing for several years and only opened the savings account because of the advertised rate witch dropped very soon after opening it. I guess its as easy as moving my money to my HSBC account witch right now is higher than ING but if I go that rout and keep moving my money around I will not get full advantage of the rates as they want you money in there for the whole calender month to get the rate if I understand it properly. I can but $50G in there today but if I move it in a week it was pointless putting it there. Also I do not do my direct banking with them and there is a minimum of a 48 hours wait for transfers so just the transfer to and then from can take a week in itself. I first became very upset with ING as they are the only financial institution out of the 7 I use that send me emails and letter about ARM Just 2 months ago I got my 30 year 6% fixed rate, Why would I go get an ARM and how dare they even offer it sence those kind of things were the downfall of our housing market and ultimately our economy. It just dose not make much business sence to me I guess.

[poundwise]

While you may come across other institutions with a higher rate of return, you may be required to pay fees or keep a minimum balance that would ultimately lead to a lower return.

ING is a fine institution but this statement is total bunk.

There are presently more than 15 other online savings offerings with no minimum balance (or $1) requirements and no fees that offer a higher yield than ING Direct's Orange Savings.

I was told by my father they just sucker you with a good rate then drop it when they have your money.

While this does happen, the rate drops lately have been across the board. Also, I'd ask your father what interest rate he is earning on his savings. If he is with a typical bank, it will be less than one quarter of one percent. If you get hit with a fee too, you're better off with a mayonnaise jar in the backyard.

[red92s]

The features, customer service, and ease of use more than make up for the slightly lower rate paid by ING.

Most of the regional and local banks offering higher returns (4% or more) require a direct deposit, about 10 debit transactions per month, and some sort of ACH withdrawal every month to get the advertised rate. Otherwise you drop of .02%.

[poundwise]

The features, customer service, and ease of use more than make up for the slightly lower rate paid by ING.

Customer service at fifteen to twenty other institutions is somehow worse than ING? And you know this how? Certainly ING is one of the good ones, but they are not the only one. Also, though the sites vary in appearance, all the online accounts I've ever used (including ING) have basically the same ease of use and features.

In any case, there is no need to defend ING; as I said, ING is a fine institution. However, the fact (not opinion, fact) is that their rate has consistently been lower than many other online savings as I've tracked these rates over the course of the last two years. That includes when rates were up in the 5s and now that they down in the 2s and 3s.

If someone likes ING, I have no problem with them staying with ING. Particularly right now, and if you have a smaller amount on deposit, for instance, there is very little difference between 2.20% APY and 3.10% APY.

[poundwise]

Most of the regional and local banks offering higher returns (4% or more) require a direct deposit, about 10 debit transactions per month, and some sort of ACH withdrawal every month to get the advertised rate. Otherwise you drop of .02%.

Point of clarification: The type of account you are referring to (with 10 debit transactions, etc.) is interest checking; not savings.

[reptile411]

My father currently gets about .41% as he is on a fixed income and barely scraping by and dose not have the kind of disposable funds that I do to be able to play with other banks. He just banks with the local mom and pop bank. I have tried to talk him into going somewhere ells but he just dosnt listen.

[cooliemae]

I use ING almost exclusively for both my primary checking and saving accounts. So I get high interest and instant transfers between savings and checking, so the small difference in interest rates has never given me cause to go elsewhere.