ING Direct Raises Orange Savings Account Interest Rate to 3.80% - ING Direct

[GottaDEAL]

<a href="http://www.gottadeal.com/Deal/13877" target="_blank"><img src="http://hotdealnews.com/images/storelogos/ingdirect.gif" border="0"></a><br /><br /><b>Earn 4.75% for a limited time!</b> ING Direct has once again just raised their rate of interest for their Orange Savings Account to 3.80%. ING Direct is FDIC insured just like other banks are but since they are a .com with no physical branches there is little or no overhead. Savings are therefore passed on to their customers - that would be you. No minimum deposit, No hidden fees or service charges and get 24-hour access to your account.<br /><br /><a href="http://www.gottadeal.com/Deal/13877" target="_blank">ING Direct Raises Orange Savings Account Interest Rate to 3.80% - ING Direct</a><br /><br />

[jonottawa]

Ha! All you suckers who have been loyal to ING get 3.8% but those of us who were smart enough to switch out get 4.75% for a few months. Sweet!

(The 4.75% amount is only for new deposits. They take your balance on January 19 and only amounts in excess of that are eligible.)

[Ripn]

From the ING site...

 

For example, using the Orange Savings Account APY from December 31, 2005 (3.80%), all New Funds that are deposited on January 19, 2006, will yield 4.75% APY for 87 days until April 15, 2006, and would yield 3.80% APY after that date. So, the blended APY for the first year after account opening is 4.03%. The blended APY for new funds that are on deposit for fewer than 87 days will be lower, as it may vary depending on the number of days the promotional rate is earned. The non-promotional APY is variable and may change during the Sale Period.

 

The best part is...

ING DIRECT retains the right to withdraw this offer at any time.

[RossMAN]

The blended APY for new funds that are on deposit for fewer than 87 days will be lower,

Interesting, it always pays to read the fine print

[jonottawa]

I think you misunderstand what that sentence means, Ross. It just means that if you get in on this deal now and hold deposits for a year (3 months at 4.75% and 9 months at 3.8%) you'll earn more than if you get in on this deal on April 10 and hold deposits for a year. (5 days at 4.75% and 360 days at 3.8%)

 

 

There's nothing funky in the fine print except the part about loyal ING customers being ineligible. :-)

[dblplay24]

There's nothing funky in the fine print except the part about loyal ING customers being ineligible. :-)

 

I read it different.... Aren't current customers eligible for new deposits as well? The print I read is that they will look at all your balances within the time, in and out of all accounts and only give you the higher rate for the amount that is above your current totals....which means that if you recently switched you might not get the new rate unless you put in more than you took out to begin with.....not sure...thats how I understood it???

[Ripn]

The way I read it, everyone is eligible.

 

Just make NEW deposits during the period...and you will get the 4.75% on those deposits.

[jonottawa]

Okay, barely eligible, if you want to quibble. If you've been a long-time ING customer, though, the amount of new deposits you're going to make in the next couple of months is piddly in comparison to the balance in your account currently. And your current balance will only be earning 3.8%.

 

Say you have 10,000 currently and deposit another thousand in the next 3 months, only 1,000 will earn 4.75% (your weighted average interest rate is 3.886% in this example, barely an improvement on the status quo, even less so because your new deposits will be earning that interest rate for fewer days (since they won't all be made right away.))

 

Whereas if you have 10,000 in Emigrant or HSBC currently and transfer it to your inactive ING account (roughly the situation I'm in) then the whole 10,000 will pull 4.75% until April 15.

[happyrat]

Well my institution which has physical branches pays 3.5%, and I got a bonus in december of 4%, so for that one month I got 7.5%. Beat that.