ING DIRECT up to 4.40 % from 4.35%

[InverseOfNeo]

Originally posted by: Engineer
ING's interest rates on CD's went up.

New rates:

12 month CD 5.25% APY
9 month CD 5.00% APY
6 month CD 4.75% APY

Are their CDs variable rate? So if the rates of new CDs goes up your existing one will too? Thats almost the only thing keeping me from getting one, especially since the savings rate is ~1% less (i.e. not that much difference). I hope I am getting my point across well.

 

[Engineer]

Originally posted by: InverseOfNeo

Originally posted by: Engineer
ING's interest rates on CD's went up.

New rates:

12 month CD 5.25% APY
9 month CD 5.00% APY
6 month CD 4.75% APY

Are their CDs variable rate? So if the rates of new CDs goes up your existing one will too? Thats almost the only thing keeping me from getting one, especially since the savings rate is ~1% less (i.e. not that much difference). I hope I am getting my point across well.

CD rates are fixed for the time period listed. I don't think the fed will ratchet rates up enough to cover the spread (and even if the fed does ratchet up rates, banks don't necessarily pass on the complete rate hikes to savings customers! ) between 4.15% and 5.25 % (1.1%) in the next year so I bought CD's for my kids savings accounts. YMMV and good luck.

My personal savings are mostly in T-bills right now because it would take a bank equivalent of 5.35% (since T-bills are state tax free) to give the same rate as the t-bills. Again, YMMV.

 

[pdawg1717]

Originally posted by: Engineer

Originally posted by: pdawg1717
Can someone explain if there is a difference between the terms "annual percentage yield" and "yield"? I have a MM account with Vanguard that says my "yield" is 4.56%. Is that different than say Emigrant having an "annual percentage yield" of 4.5%?

Same thing.

APY (sometimes referred to yield) is derived from APR (not stating that you don't alrady know this. Just a FYI).

APY vs APR

So if my MM fund is getting 4.56% "yield" would there be any reason for me to get an account like ING, etc?

 

[Engineer]

Originally posted by: pdawg1717

Originally posted by: Engineer

Originally posted by: pdawg1717
Can someone explain if there is a difference between the terms "annual percentage yield" and "yield"? I have a MM account with Vanguard that says my "yield" is 4.56%. Is that different than say Emigrant having an "annual percentage yield" of 4.5%?

Same thing.

APY (sometimes referred to yield) is derived from APR (not stating that you don't alrady know this. Just a FYI).

APY vs APR

So if my MM fund is getting 4.56% "yield" would there be any reason for me to get an account like ING, etc?

I would say no unless the interest rate was much higher at ING, HSBC, GMAC (4.75% APY) etc. CD's at ING might be attractive with a 5.25% yield over 12 months. Even 5% yield at 9 months is nice!


Also, a general FYI on CD's at ING: There is NO minimums to buy CD's there!

 

[JSLIM]

Originally posted by: pdawg1717

Originally posted by: Engineer

Originally posted by: pdawg1717
Can someone explain if there is a difference between the terms "annual percentage yield" and "yield"? I have a MM account with Vanguard that says my "yield" is 4.56%. Is that different than say Emigrant having an "annual percentage yield" of 4.5%?

Same thing.

APY (sometimes referred to yield) is derived from APR (not stating that you don't alrady know this. Just a FYI).

APY vs APR

So if my MM fund is getting 4.56% "yield" would there be any reason for me to get an account like ING, etc?

if you want a free $25 for signing up you can go with ING...
I have a referal if you need it.

 

[Miramonti]

Originally posted by: pdawg1717

Originally posted by: Engineer

Originally posted by: pdawg1717
Can someone explain if there is a difference between the terms "annual percentage yield" and "yield"? I have a MM account with Vanguard that says my "yield" is 4.56%. Is that different than say Emigrant having an "annual percentage yield" of 4.5%?

Same thing.

APY (sometimes referred to yield) is derived from APR (not stating that you don't alrady know this. Just a FYI).

APY vs APR

So if my MM fund is getting 4.56% "yield" would there be any reason for me to get an account like ING, etc?

Not sure what MM fund is, but if you're principal is not at risk and you have no fees, then you're good. Otherwise if either of those are a factor, then its definitely worth considering switching.

 

[Engineer]

Originally posted by: jjsole

Originally posted by: pdawg1717

Originally posted by: Engineer

Originally posted by: pdawg1717
Can someone explain if there is a difference between the terms "annual percentage yield" and "yield"? I have a MM account with Vanguard that says my "yield" is 4.56%. Is that different than say Emigrant having an "annual percentage yield" of 4.5%?

Same thing.

APY (sometimes referred to yield) is derived from APR (not stating that you don't alrady know this. Just a FYI).

APY vs APR

So if my MM fund is getting 4.56% "yield" would there be any reason for me to get an account like ING, etc?

Not sure what MM fund is, but if you're principal is not at risk and you have no fees, then you're good. Otherwise if either of those are a factor, then its definitely worth considering switching.

MM = Money Market!

 

[Thorny]

Anyone else with a referal? I'll take one via PM

 

[JSLIM]

Originally posted by: Thorny
Anyone else with a referal? I'll take one via PM

sent you pm

 

[s0ssos]

but citibank's esavings is at 4.5. and it's much easier to use. just link it to your normal checking/savings account

 

[ghostrider78]

I am looking for an ING referal. Thanks

 

[ActuaryTm]

Originally posted by: ghostrider78
I am looking for an ING referal. Thanks

PM sent.

 

[w33bo]

citibank e-savings is 4.75 now, but from what i understand, you have to have a regular checking, which is free only if you pay 2 bills a month

 

[esquared]

Updated the title to 4.35% APY.

 

[fallenangel99]

Capital One is 4.64% APY

 

[EKKC]

hsbc is 5.05%
rock on
http://www.hsbcdirect.com/1/2/1/

 

[esquared]

Originally posted by: EKKC
hsbc is 5.05%
rock on
http://www.hsbcdirect.com/1/2/1/

Wow, glad most of mine is in HSBC. Thanks for the update.

 

[CptObvious]

wow.

i moved my savings from HSBC to ING a few weeks ago because i preferred ING's interface. now the rates aren't even close.

for those who move $ back and forth - is there a way to do it directly, or do you have to go through your checking account each time?

 

[poisonthewell]

bump . . .i'm curious as to how people move their money around. it doesn't seem like it's worth the time since you're losing $ each day the money is in limbo because it is being transferred around.

 

[Passions]

Originally posted by: CptObvious
wow.

i moved my savings from HSBC to ING a few weeks ago because i preferred ING's interface. now the rates aren't even close.

for those who move $ back and forth - is there a way to do it directly, or do you have to go through your checking account each time?

Alot of people have Emigrant Direct as a go-inbetween transfer.

ING <-> Emigrant Direct <-> HSBC.

 

[poisonthewell]

Originally posted by: Passions

Originally posted by: CptObvious
wow.

i moved my savings from HSBC to ING a few weeks ago because i preferred ING's interface. now the rates aren't even close.

for those who move $ back and forth - is there a way to do it directly, or do you have to go through your checking account each time?

Alot of people have Emigrant Direct as a go-inbetween transfer.

ING <-> Emigrant Direct <-> HSBC.

Any idea how many business days that can take?

 

[esquared]

Originally posted by: poisonthewell
bump . . .i'm curious as to how people move their money around. it doesn't seem like it's worth the time since you're losing $ each day the money is in limbo because it is being transferred around.

Approximate monthly interest on 20K at 4.35% APY ING is $71.46
Approximate monthly interest on 20K at 5.05% APY at HSBC is 82.98. Diiference is 11.52 or 0.38 per day that the money isn't drawing interest. Say it takes a week, that's 2.66 cents you've lost in interest while transferring from ING to HSBC. Not a big deal IMO. The upside is 138.24 more per year in interest at these current rates, (11.52 times 12 months). Please don't get too nitpicky about my calculations, they are only approximate.

 

[drnickriviera]

Originally posted by: esquared

Originally posted by: poisonthewell
bump . . .i'm curious as to how people move their money around. it doesn't seem like it's worth the time since you're losing $ each day the money is in limbo because it is being transferred around.

Approximate monthly interest on 20K at 4.35% APY ING is $71.46
Approximate monthly interest on 20K at 5.05% APY at HSBC is 82.98. Diiference is 11.52 or 0.38 per day that the money isn't drawing interest. Say it takes a week, that's 2.66 cents you've lost in interest while transferring from ING to HSBC. Not a big deal IMO. The upside is 138.24 more per year in interest at these current rates, (11.52 times 12 months). Please don't get too nitpicky about my calculations, they are only approximate.

That doesn't work. You need to divide the monthly interest by 30. You loose $2.38 per day at ING. So over the week the money is in limbo, you loose $16.67 (using your numbers) So looks like it will take a little over a month and a half to recoup the money.

 

[mithrandir2001]

So ING has fallen behind the curve. Vanguard Prime Money Market is yielding 4.93%.

 

[esquared]

Originally posted by: drnickriviera

Originally posted by: esquared

Originally posted by: poisonthewell
bump . . .i'm curious as to how people move their money around. it doesn't seem like it's worth the time since you're losing $ each day the money is in limbo because it is being transferred around.

Approximate monthly interest on 20K at 4.35% APY ING is $71.46
Approximate monthly interest on 20K at 5.05% APY at HSBC is 82.98. Diiference is 11.52 or 0.38 per day that the money isn't drawing interest. Say it takes a week, that's 2.66 cents you've lost in interest while transferring from ING to HSBC. Not a big deal IMO. The upside is 138.24 more per year in interest at these current rates, (11.52 times 12 months). Please don't get too nitpicky about my calculations, they are only approximate.

That doesn't work. You need to divide the monthly interest by 30. You loose $2.38 per day at ING. So over the week the money is in limbo, you loose $16.67 (using your numbers) So looks like it will take a little over a month and a half to recoup the money.

Yeah, you're right. So in the end if a year you still get 121.57 more in interest by transferring, (138.24 - 16.67).