ING Direct announced today that they were dropping the interest rate on their popular Orange Savings account to 1.30%, down .10% from 1.40% as of 9/9/2009.
ING Direct gained notoriety in the banking industry for being one of the first successful online savings accounts. The bank was successful at drawing in customers from bricks and mortar banks by offering better interest rates and an easy-to-use online interface. Initially, the rates that ING offered were about the best rates on savings around, but as their deposit base has grown, their rates have not kept up with the most competitive offerings.
The company has also made modifications to the interest rates that they are offering on their certificates of deposit. ING’s 12 month CD rate increased by 0.35% to 1.85%. ING’s 6 month CD rate has also decreased by .10% to 1.55%. The decline in shorter-term rates and increase in longer-term rates indicates that the bank believes that the economy will continue to struggle in the short term, but may see some amount of grow in the longer term that would result in an interest rate hike.
Rates on ING Direct’s Electric Orange checking account were also updated today. On balances between $0 and $50,000, customers will now earn 0.25% APY. On balances between $50,000 and $100,000, customers will earn a rate of 1.50% and on balances of $100,000 or more, customers will earn 1.55% APY.
