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ING Direct Cuts Rates Second Time in a Month
February 20, 2009
7:36 pm
jeremywong
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February 3, 2009
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ISA and TFSA rates drop from 2.5 to 2.3.

February 21, 2009
8:31 am
Mike
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You would think with the credit crunch, the banks begging for billions of dollars in tax payer bailout money because they fear they will go under and not to mention they are way over leveraged they would actually WANT depositers money.

I guess it's easier to get it from taxpayers than it is to intice depositers.

Anyone remember in the 70-80's banks wanted and appreciated depositers? Then in the early 90's didn't need them anymore because they were making a billion a year and savings rates were .025% lol.

Mike

February 21, 2009
8:50 am
jeremywong
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Maybe it's cheaper for banks to borrow from the Bank of Canada than from depositors.

February 21, 2009
10:32 am
scrooge
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Isn't ING's 2.3% approaching the rates most brick mortar banks are offering for their online savings accounts? I guess ING can no longer rant about how much higher their interest rates are compared to their competitors.

I also think a saver would choose a brick mortar bank over ING if both offers the same interest rate. ING should consider this before tinkering interest rates again and destroying their business life line in the process.

February 21, 2009
6:39 pm
Doug
British Columbia, Canada
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ING Bank of Canada's Investment Savings Account is a joke, really, and has been for several months. BMO, HSBC, RBC and Scotiabank all offer a savings account that pays an equal rate of interest or a higher one to ING's products and have been for several months. At 2.3%, ING now ranks near the bottom of the pack, ahead by only 0.5% than CIBC and TD. In fact, CIBC's own PC Financial Interest Plus account easily beats ING.

Why people continue to stay with ING when they are paying a pitiful interest rate and aren't even part of The Exchange network like HSBC and ICICI and as such have the smallest ABM network in Canada (less than a dozen ABMs) and pay per-transaction service charges is beyond me?

There is a much, much better alternative out there. 🙂

Cheers,
Doug

February 23, 2009
1:14 pm
Choppy McSlice
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Doug: Come March 16, your "much, much better alternative" isn't going to look much better than ING, in fact, with a base interest rate of 2.25%, it's going to look a little, little worse.

Do you know of any alternatives actually worth considering?

February 23, 2009
6:52 pm
Craig
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LOL! Good one Choppy.

ING's savings rates are near the bottom of the pack, but they're still competitive. I think the spread from bottom to top is something in the order of 0.2% (e.g. ICICI is currently paying out 2.5% compared with ING at 2.3%). People's Trust continues to lead the way at 3.6% (although they don't provide an online interface to check your balances, etc...).

ING has a decent RRSP promotion on right now: they're paying 3.5% on a 90 day registered GIC. Having said that, if you look at ING's 180 and 270 day GIC rates, they pay out at 1.75%, suggesting that ING believes the BoC will be lowering rateds again in March. So what will probably happen is when the 90-day GIC at 3.5% matures, your cash+interest will roll-over in to a daily interest RRSP savings account that pays around 1.75%. So if you leave your cash there for the rest of the year until interest rates come back up (which they probably will), the net result is that you won't be any further ahead compared with just taking a 1 year GIC at, say, 2%. Of course, the way to avoid this is to transfer-out your ING 90-day GIC to a bank that pays better interest once it matures (ING doesn't charge a transfer-out fee).

February 24, 2009
12:20 pm
Digitalyuki
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hey, i know you guys in Canada are griping, but in the US I just noticed my Savings account dropped to 2.2% on Feb 3rd, and then on Feb 18th dropped to 1.85%! That's so low! At these rates I'm considering moving my $$... I wonder why they are doing this, don't they want people to keep money in their bank?

February 24, 2009
12:28 pm
financier
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ING is changing name from may i guess, it was sold to another company

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