NG DIRECT, FDIC insured bank offering one of the highest savings rates with no fees and no minimums. ING Direct also provides competitive Certificate of Deposits with no minimum deposit, 5/1 ARM Mortgages, Home Equity Loans and Mutual Funds.
Question : Is ING Direct the best savings option?
Ive been with ING Direct for over a year, and I like it, its convenient, but the savings rate keeps going down somewhat in the past 6 months, and I can tell that other savings have higher earning rates (ING is currently only at 4.20 APY )How come other savings accoutns offer much higher earning rates than ING? Do they charge to become a member; ING is free. Im wondering whether I shoudl switch or not.
- asked by Tha tru hustla
All Answers: Answer #1I've also been with them for about a year. They had a great rate, and as you say, have beendropping, but so has the interest rate in general.My paypal account has dropped under 5% as well. You can do better than 4.20. Paypal is around4.8% and it doesn't cost anything to open anaccount. They pay interest monthly. I'm going toswitch.
- answered by magnolia
Answer #2
paypal pays more... 4.90% last I checked. but INGis an ok option for short term savings.
- answered by Gazelle Intense
Answer #3
Paypal my have a higher interest rate, but don'tforget that switching to Paypal does entail morerisk. ING is a registered bank and therefore iscovered by FDIC insurance. Funds held in thePaypal money market fund (which pays the high rateof interest) are not covered by FDIC insurance(see info from Paypal site below).Your call, butI'd stay with ING as opposed to switching toPaypal as others have suggested.
- answered by The Professor
Answer #4
All of rates are pegged to the Fed Funds Rate. When it goes down, as it has twice recently, allof the rates go down.I have accounts withINGDirect and HSBCDirect. While the HSBC accountpays a little more, the ING account is much easierto use. If I had to pick one, I would go withING.
- answered by Wayne Z
Answer #5
Another option is a GE Interest Plus account. They offer competative rates that are typicallyhigher than most Internet and traditional banks. While GE is not registered as an FDIC insuredbank, I wouldn't count on this company havingliquidity problems anytime soon. It is also worthmentioning that there are no fees to open, access,maintain, and write checks against the account. Good Luck!
- answered by Sir K
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