ING Direct Savings Rate Drops To 2.4%
Effective today, the interest rate paid on the ING Direct savings account drops slightly from 2.5% to 2.4%. That’s bad news for anybody saving money and ING’s rates haven’t been the highest around for quite some time, but ING’s ease of use and customer support goes a long way towards making up for paying a slightly lower rate to many savers. Furthermore, 2.4% is still well above the national average savings rate of 0.42%.
Interest Rates Likely To Head Lower
Unfortunately, this most recent drop is likely to continue at least for the next 6-12 months until the economy shifts into recovery mode. As economic output picks up, the Federal Reserve will likely start raising interest rates again to stave off inflation. But until then, it’s slim pickings for your emergency fund dollars. Personally, I don’t worry too much about always getting the highest rate at all times since my emergency fund is so small. Sometimes you’ll earn the highest, sometimes you won’t, but at least you’ll never have to worry about being in the bottom of the barrel, so to speak.
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A week ago, I opened an account at 2.2%, I checked today and it’s down to 1.84%