ING Direct Bucks Rate Trends and Raises Rates on CDs and Electric Orange Account

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ING has joined the rate raising crowd. Even though interest rates are projected to drop, banks are keeping their rates steady, or even raising them. I'm not complaining.

ING Direct has bucked the prevailing wisdom like many other banks and raised the rates on severa of its certificate of deposit terms and its Electric Orange Savings Account.  While the market is still assigning a greater than 50% probability that the Fed will cut rates again after its emergency cut of 50 basis points (half a percentage point) two weeks ago, banks have mostly held their rates steady or have even increased them.  This analysis shows that savings account yields have actually held up relatively well as the market and economy has fallen apart. 

That trend seems to be continuing.  ING Direct raised the rates on its 12 month CD and its 18 month CD by 25 basis points (quarter of a percentage point)  making them more competitive.  It also raised the rate on the top tier (above $100,000 in balances) of its Electric Orange Account.   

The parent company of ING Direct, ING was recently bailed out by the Dutch goverment to the tune of $13 billion.    ING has major insurance and commercial banking operations.  The retail bank has $338 billion euros in savings and current-account deposits at the end of last year, making it one of the world’s largest retail banks.


GMAC Bank Raises Online Savings Rate to 3.75% APY

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Even though the Fed dropped rates last week by 1/2 percent, GMAC raised the rate on their online savings acccount from 3.5% APY to 3.75% APY.

Even though the Fed dropped rates last week by 1/2 percent, GMAC raised the rate on their online savings acccount from 3.5% APY to 3.75% APY.  This places their account amongst the Top 10 best online savings account rates according to the BestCashCow rate tables. 

From all accounts, opening an account at GMAC is easy and straight-forward.  You can fund your account via an account-to-account transfer and they use an initial trial deposit to verify your ownership. 

GMAC is rated 3 1/2 starts according to the latest Bauer Financial analysis but the company has come under stress due to the credit meltdown.  It's residential mortgage arm, Residential Capital (ResCap) is relying on the Treasury Bailout plan to keep it solvent. 

It's this pressure which probably led it to raise rates in its efforts to keep and attract new deposits.

Remember, as with any institution to keep your deposits amounts below the FDIC insurance limits.


DollarSavingsDirect Raises Online Savings Rate to 4% APY

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DollarSavingsDirect raised the rate on their online savings account from 3.75% APY to 4% APY, putting them at the top rate savings rate spot on the BestCashCow rate tables.

DollarSavingsDirect

DollarSavingsDirect raised the rate on their online savings account from 3.75% APY to 4% APY, putting them into a tie for first as the top savings rate on the BestCashCow rate tablesWe originally covered DollarSavingsDirect in late August when they first launched seperate from the bank's existing online division EmigrantDirect.com.  It's becoming clear that DollarSavingsDirect is the brand that Emigrant wants to use to raise new deposit money.