ING "temporarily" sets TFSA and RRSP investment accounts at 2% | Tangerine Bank | Discussion forum

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ING "temporarily" sets TFSA and RRSP investment accounts at 2%
January 1, 2012
9:52 am
Bob
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I wonder how long before they remove the promotional rates...

January 1, 2012
11:59 am
kilarney
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yep, I got an email alert from a chat board run by the orange manipulators. Did anybody use the new year change to pull out funds and make an attempt at punishing the bait-and-switchers? I admit I didnt....sigh.

January 1, 2012
9:38 pm
Steve
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I have been with ING for years, and I'm used to this bait-and-switch tactic. No more. The 2% rate lasts for 2 months, then back down to 1.5%. I've resolved to finally close my ING accounts this month. I'm moving my TFSA to Canadian Direct Financial (3% for almost 2 years now, no changes). I'm moving my regular savings to AcceleRate Financial (2.2% for over 1 year). I'll be so glad to flush ING down the toilet.

January 2, 2012
8:19 am
Bob
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Steve - Quebec has limited choices so ING is all I got. ING usually keeps their teaser rates longer than most, like six months. Nevertheless, it is still better than the big six...

January 3, 2012
3:42 am
Nightowl
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The rate on ING 90 day RSP and TFSA GICs were also increased to 2.5% 01/01/2012

Like Bob, my options are limited for my "cash" deposits.

At least ING allows you to look up their historical rates easily.
For the 90 day RSP GIC, the rate went from 0.50% to 3.00% on 01/01/2010 until 04/01/2010 (90 days). Then it went back down to 0.50%

As for "Bait and Switch",

Put your money into a given ING account and you get the interest rate of that account .....there's no "Bait and Switch"
They won't tell you they're out of 90 day GICs at 2.5%, but have a nice 120 day GIC at 1.0% instead or that your ISA will be paying you less interest than advertised.

ING is a business, a bank. They change the interest rates of their products to attract, retain and even discourage customers and influence where and how long those customers place their money with them. All banks do this and all banks are influenced by the BOC prime rate.

ING used to use the line "interest rates can change just like the weather" in their ads. Other banks change their interest rates too, they just don't talk about it or make it easy or even possible to view historic rates for comparison.

I see ING "teaser" rates for what they are, a limited time bonus. In general ING has higher everyday rates than my other bank. My other bank never increases rates for a limited time, yet ING 90 day RSP and TFSA GIC rate is up 250%, or has money sales, like the one ING had in November (1 year GIC @2.0%).

I remember 11% 1 year GICs, but with the BOC prime at 1.00% interest rates on cash deposits will remain depressingly low.

January 5, 2012
6:23 am
Simon
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Nightowl said:

ING is a business, a bank. They change the interest rates of their products to attract, retain and even discourage customers and influence where and how long those customers place their money with them. All banks do this and all banks are influenced by the BOC prime rate.

Fair enough. But what bothers me is ING built its reputation by criticizing the Big 5: useless fees and negligible interest rates. Now 10 years later, with a bigger share of the market, they keep a negligible margin of 0.25% above whatever the Big 5 offer. The new Thrive account, advertised as a free chequing account that gives interest. Yes, a negligible 0.25% rate.
I've always respected their no fee structure, but when you think about it, their operational costs are a fraction of any other bank with a network of branches. And overall, they offer products with less convenience and service, yet with a model that resembles more and more the Big 5's.
I'm longing for the day when Peoples Trust will have online banking, that will probably be the end of this relationship.

January 5, 2012
9:26 am
88kanaka
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Simon said:

Nightowl said:

ING is a business, a bank. They change the interest rates of their products to attract, retain and even discourage customers and influence where and how long those customers place their money with them. All banks do this and all banks are influenced by the BOC prime rate.

Fair enough. But what bothers me is ING built its reputation by criticizing the Big 5: useless fees and negligible interest rates. Now 10 years later, with a bigger share of the market, they keep a negligible margin of 0.25% above whatever the Big 5 offer. The new Thrive account, advertised as a free chequing account that gives interest. Yes, a negligible 0.25% rate.
I've always respected their no fee structure, but when you think about it, their operational costs are a fraction of any other bank with a network of branches. And overall, they offer products with less convenience and service, yet with a model that resembles more and more the Big 5's.
I'm longing for the day when Peoples Trust will have online banking, that will probably be the end of this relationship.

I review my banking needs every now and then. I have looked many times at ING since its' inception in Canada. The advertising is great but when you look at their web site their is not enough incentive to change over.

Thanks Simon....you have explained it well.

January 16, 2012
7:26 am
Peter
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I got an ING Direct promotional flyer in the mail today that implies that the current TFSA and RSP rates are valid until March 31, 2012. Of course, at that time they could technically leave it at that rate instead of dropping it back down.

January 16, 2012
11:15 am
Bob
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I don't blame ING for these schemes. It is like Disnat keeps offering $300 if you transfer $50,000 in assets.

Instead I look at the positive and try to take advantage. 2% for two months and 2.5% for 90 day GIC are great opportunities for the cash part of your portfolio.

January 18, 2012
12:00 pm
Nightowl
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If only they would publish when the 2.5% on 90 day TFSA and RSP GICs will end.

March 1, 2012
7:14 pm
Bob
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ING wasted no time and took down the 2.5% for 90 day RSP and TFS GICs.

March 2, 2012
8:08 am
guest
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I haven't had any money with ING for years... they were the very first real "savings" account I ever had when I first started to get serious about saving money and earning interest back in the late 1990s. I've since moved onto bigger and better things, but I still remember the rush I got when I got my first ING Direct Statement telling me I had "earned" seven bucks in interest over one month for simply parking $2,000 with them. I've been hooked ever since. Anyway, back to the point of this thread... I seem to remember that one of ING's big marketing hooks was "no fees" on anything... not even transfer-out fees. Transfer-out fees are what what makes the yearly bait-and-switch season on TFSAs (and RRSPs) so lucrative for the online savings account banks. In most cases, the transfer-out fee the bank charges would exceed the interest earned on a typical TFSA savings account, so the account-holder is either forced to keep their money where it is, or worse still they initiate the transfer only to find out about the transfer-out fee after the transfer has taken place. When I was with ING they had no transfer-out fee, so you could safely take advantage of their winter TFSA teaser rates and still have the option of transferring-out your funds at the end of the promotional period if you wanted. So unless ING now charges a transfer-out fee, its actually not that bad of a deal to park some TFSA cash with them to take advantage of the marginally-higher interest rates they offer for a few months in the new year.

March 2, 2012
10:18 am
Bob
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ING moved the RSP and TFS 90 day GIC rate back to 2.5% less than 24 hours of bringing it down to 1%. I guess ING had a change of heart.

March 4, 2012
5:40 am
Simon
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My guess is the promotion will end on March 30th, precisely 90 days after it started, to make sure one one gets a second round at it.

As for the transfer out fee, its only real purpose is to discourage the customer to precisely do that. I don't call it "lucrative" by any means because it's obviously more lucrative for the bank to hold your money long term than to charge you $50 once in your lifetime. Some banks will cover that fee if you transfer your money to them, that's how not lucrative that fee is.
ING might not charge a transfer out fee, but it takes 1 month for the transfer to be complete, while no interest is being earned, so there is indirectly a cost.

March 5, 2012
1:19 pm
Bob
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Wow it takes a month?

I had been thinking of transferring out my TFS and RSP cash sitting idly in ING to a discount brokerage, but have been putting it off. The 2.5% 90 day GIC is keeping me still so far.

March 5, 2012
1:27 pm
Yatti420
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I think ING will be starting to cut the rates shortly if they haven't already.. On the plus side I opened up a Thrive chequing account today.

March 6, 2012
12:39 pm
guest
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Simon said:

My guess is the promotion will end on March 30th, precisely 90 days after it started, to make sure one one gets a second round at it.

As for the transfer out fee, its only real purpose is to discourage the customer to precisely do that. I don't call it "lucrative" by any means because it's obviously more lucrative for the bank to hold your money long term than to charge you $50 once in your lifetime. Some banks will cover that fee if you transfer your money to them, that's how not lucrative that fee is.
ING might not charge a transfer out fee, but it takes 1 month for the transfer to be complete, while no interest is being earned, so there is indirectly a cost.

I never said the transfer-out fees themselves were lucrative to the banks, I said they were lucrative because they in effect discouraged people from withdrawing their TFSA money.

April 1, 2012
7:34 am
Peter
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The RSP rate is down to 1.35% and TFSA is down to 1.60%, which completes their predicted lowering of rates for all accounts discussed.

Personally, I will be moving all my money out of ING Direct.

April 1, 2012
7:50 am
moneysaver
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Also Peter, They lowered back the 90 day RSP GIC from 2.50% to 1%. One would question why wouldnt they lower back the RSP loan from 3.75% to 3%. Not many people would borrow a RSP loan now since the deadline for the 2011 tax year has come and gone. The best time for a RSP loan is about the middle of February to March 1 so when you get your refund in April or early May you can put the refund right back on the RSP loan. So it do not make since why they left the RSP loan at 3.75%.

April 1, 2012
10:09 am
PrettyOrdinaryWoman
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I just logged onto to my ING and saw that they'd lowered the rate to 1.6!!!! WTH? That's it, I'm going to "move my money".... researching the rates at other banks, online or not. Does anyone know where I can find a comparison site?

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