ING APY dropped again

[snshijuptr]

So the ING APY on my savings accounts dropped again from 1.1% to 1.0%. Did anyone else have this happen? I'm torn between wanting interest rates to rise (for my savings) and wanting them to stay low (for when we buy a house).

[Joan.of.the.Arch]

Is that on a savings account? I have Electric Orange checking with them, and their website says only 0.25% for that account. However, I was thinking a few days ago an email from ING spoke of a rate around ~1.0%. I seemed to have thrown away the email. But my actual account does say 0.25%. We use ING for a little bill paying only. We have accounts elsewhere for most of our available money--and at higher interest, 2.51% currently.

P.S. Oops, yes, you did say that is on savings. Duh.

[DanielB]

Yes, this appears to be true. I am in the process of moving my banking from ING to Ally Bank. Seems to pay higher interest, and the unlimited free ATM usage will save me some money.

[Hector]

Yeah, interest rates are still dropping! I used to chase the rate, but I dont think it matters these days.

[Slug]

Ally dropped as well I think. However, at the same time they sent me an alert that I could move my money to their 11 mth no penalty CD to get a higher rate. No penalty for early withdrawal and a rate that can't go down for 11 mths. Sign me up. I moved it all over there. Looks like I should move all ING over there too.

[kork13]

Yeah, interest rates are still dropping! I used to chase the rate, but I dont think it matters these days.

FACT.

yea, at one point I worried about it, but realized that right now, with the differences between "high", average, and low interest rates as small as they are, it really doesn't matter at all. Even for my EF account that has $20k in it, the difference is a matter of $3-$5/month. I have ceased to care--my rate is as good as it's gonna be until they finally start moving back up.

[DanielB]

FACT.

yea, at one point I worried about it, but realized that right now, with the differences between "high", average, and low interest rates as small as they are, it really doesn't matter at all. Even for my EF account that has $20k in it, the difference is a matter of $3-$5/month. I have ceased to care--my rate is as good as it's gonna be until they finally start moving back up.

Still, I can't help but remember when UFB Direct and ING were paying over 5%. Oh, those were the good ol' days!

[Slug]

Still, I can't help but remember when UFB Direct and ING were paying over 5%. Oh, those were the good ol' days!

And, they shall return, but not yet, not soon.

[EconoMutt]

I use FNBODIRECT. They are paying 1.1%

[feh]

Redneck recently dropped from 1.74 to 1.50, but that is still just about the highest available.

[bennkar]

I have to agree with Kork - I don't worry about rates when the amounts are so small everywhere. I am putting my extra $$$ into my mortgage - I figure that's giving me around a 6% return, so why go anywhere else? (I have less than a year remaining at this rate on my mortgage, so this tactic is not risky as far as I am concerned).

[KiwiJo09]

I get 1.35% with my account. The difference between the rates is minimal and unimportant. It's just important to save.

[Slug]

I moved the bulk of my ING money over to a no-penalty CD at ALLY at 1.1%

[snafu]

I can't see the point of large sums in low interest savings. Price increases in the grocery store, gas pump [9% here]and municipality fees up 25% reads inflation. [Libyan oil goes primarily to Europe, China, none to N America]

I believe this loss of buying power translates to loss on savings that is higher than risk of an index fund. Investors can instantly transfer to Money Market if they feel 'the sky is falling'...their economy is/will soon crash. What is causing this level of fear?

[DanielB]

I can't see the point of large sums in low interest savings. Price increases in the grocery store, gas pump [9% here]and municipality fees up 25% reads inflation. [Libyan oil goes primarily to Europe, China, none to N America]

I believe this loss of buying power translates to loss on savings that is higher than risk of an index fund. Investors can instantly transfer to Money Market if they feel 'the sky is falling'...their economy is/will soon crash. What is causing this level of fear?

snafu, just one comment on your post. While Libyan oil might well go to Europe and China, what do you think happens when these countries lose a major source of oil (Libya, in this case)? Of course, they'll be competing with the U.S. for our own sources. So while the Libyan situation does not directly affect the U.S. oil supply, it does in an indirect way.