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Investing too much in marketing?
April 5, 2008
8:32 pm

I don't know about you guys, but I've had the feelings lately that ING are overspending in marketing and getting widely known at the expense of their interest rates.

They once were competitive but now they're surely not in the run anymore. For sure they're not far away from the other bank % because there was a big drop lately but I have the feeling they surely won't be in the lead when it's going to be time to higher interest rates....

April 6, 2008
2:05 am
Forum Posts: 1390
Member Since:
May 15, 2007
sp_UserOfflineSmall Offline

I agree. I only keep an ING account open in case the occasional promo is a good one. For example, they had one of the best one-year RSP rates at the beginning of the year...

April 6, 2008
11:28 pm

Interest rates would not be effected by marketing costs. Interest rates on these types of savings accounts are determined by prime rate.

April 8, 2008
9:33 am

"Interest rates would not be effected by marketing costs. Interest rates on these types of savings accounts are determined by prime rate."

If this were true, then all of the online banks would have identical interest rates. Why do you suppose that is not the case?

April 26, 2008
12:34 pm
Salty Bob

All these online high savings bank accts are affected by the Prime Rate and DO NOT have to have identical rates as a result. ALL were lowered when the prime rate went down, but they adjust their own rates to stay competitive.

Not rocket science. HSBC was locked in at offering 4.75% because of their promotional rate, but once its over after May 2nd, I'm sure they will drop significantly to probably 3.3% or lower. I'm guessing that based on Canadian Tire's current rate which was 3.35%? Just took a look at RBC's high interest rate acct and they are only at 2.5%!!! Imagine, just a year ago everyone was 4% and higher, but when the Prime Rate was cut, they ALL followed suit.

May 23, 2009
4:25 pm

Next to salaries, Marketing is the next largest cost for ING DIRECT. They need to stop the excessive marketing and increase their rates

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