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.
2007-11-02 15:27:23 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Paypal my have a higher interest rate, but don't forget that switching to Paypal does entail more risk. ING is a registered bank and therefore is covered by FDIC insurance. Funds held in the Paypal money market fund (which pays the high rate of interest) are not covered by FDIC insurance (see info from Paypal site below).
Your call, but I'd stay with ING as opposed to switching to Paypal as others have suggested.
2007-11-02 16:08:29 · answer #1 · answered by The Professor 5 · 0⤊ 0⤋
Another option is a GE Interest Plus account. They offer competative rates that are typically higher than most Internet and traditional banks. While GE is not registered as an FDIC insured bank, I wouldn't count on this company having liquidity problems anytime soon. It is also worth mentioning that there are no fees to open, access, maintain, and write checks against the account.
Good Luck!
2007-11-03 02:25:01 · answer #2 · answered by Sir K 1 · 0⤊ 0⤋
I've also been with them for about a year. They had a great rate, and as you say, have been dropping, 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 around 4.8% and it doesn't cost anything to open an account. They pay interest monthly. I'm going to switch.
2007-11-02 15:38:34 · answer #3 · answered by magnolia 5 · 0⤊ 1⤋
All of rates are pegged to the Fed Funds Rate. When it goes down, as it has twice recently, all of the rates go down.
I have accounts with INGDirect and HSBCDirect. While the HSBC account pays a little more, the ING account is much easier to use. If I had to pick one, I would go with ING.
2007-11-02 22:35:37 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
ING is likely certainly one of the main important Dutch economic organisation & coverage employer interior the international. maximum eu economic establishments are much less effect withe the present economic turmoil. So this is secure to open a saving account with it.
2016-11-10 02:55:13 · answer #5 · answered by ? 4 · 0⤊ 0⤋
paypal pays more... 4.90% last I checked. but ING is an ok option for short term savings.
2007-11-02 15:47:54 · answer #6 · answered by Anonymous · 0⤊ 1⤋