ING: Anyone else notice?

[brewer12345]

In the last month or two, it seems that ING has quietly stopped trying to be the top paying deposit institution in the country. They bumped the savings account rate a little bit, but the current 2.35% is well under what the top banks are paying (3% seems to be the top). In fact, ING doesn't even appear on the list of top 5 savings rates published daily in the WSJ any more, and hasn't for a while. I suppose I should have been expecting this. Too bad they haven't bothered to change their advertising to stop saying that they pay the most in the country.

[MJ]

Over a week ago, I started a thread regarding EmigrateDirect an ING clone currently paying 3%. I opened an account with them already. I'm in the process of moving a chunk of money from ING to them. Hey today, it's .65% more.

MJ

[KB]

If I didn't already have a MM paying 3%, I would have moved my money to EmigrateDirect also. I saved the link....just in case.

PS, My MM raises their interest rate 3 - 4 weeks before ING, so in my opinion ING is running behind.

[Marshac]

Who is your MM through?

[KB]

The're not open to the public at this time, GMAC Demand Notes. If they do open, I'll post something. For years they solicited referrals, but recently stopped accepting new people.

[brewer12345]

Considering that GMAC is skating on the edge of junk bond ratings, I don't think I'd be too eager to put my money there.

[Marshac]

Quote:

Considering that GMAC is skating on the edge of junk bond ratings, I don't think I'd be too eager to put my money there.

Agreed.

[Bob_Smith]

Quote:

Over a week ago, I started a thread regarding EmigrateDirect an ING clone currently paying 3%. I opened an account with them already. I'm in the process of moving a chunk of money from ING to them. Hey today, it's .65% more. MJ

I'm moving mine from ING too. Keep posting MJ - between PenFed and Emigrate you've made me some money.

[Austin_Explorer]

Can someone confirm that this is the right URL for this institution?

http://www.emigrant-direct.com/

The differs slightly from what is mentioned here (emigrate versus emigrant) and in this day and age of spoof sites I want everyone to be certain.

[Bob_Smith]

Austin, yep, that's it. I misspelled it in a post above - it's Emigrant - not Emigrate.

[MJ]

Quote:

I'm moving mine from ING too. Keep posting MJ - between PenFed and Emigrate you've made me some money.

My pleasure. It just takes a little finger walking using a touchpad. I guess my job has some benefits that I will miss when I leave this year, which is getting paid for doing this type of research.
I would love to sock away another $25k but I am maxed out with PenFed. I am looking for so other institution to possibly match this rate but haven't had any luck. The best I could find is 4.61% at DCU.

Sorry Austin, I have been misspelling all along, at least I got the link right.

MJ

[KB]

Quote:

Considering that GMAC is skating on the edge of junk bond ratings, I don't think I'd be too eager to put my money there.

Do you really think their Money Market might not be safe because of their Bond rating? Does the Bond rating give a general feel for the company?

If so, maybe I should move my money. It's my living expenses for the next year or two; I don't want to worry about it.

[brewer12345]

Quote:

Do you really think their Money Market might not be safe because of their Bond rating? *Does the Bond rating give a general feel for the company? If so, maybe I should move my money. *It's my living expenses for the next year or two; I don't want to worry about it.

If you put money into a money market account there, you are loaning money to GMAC just the same as if you were buying longer term bonds. Given that GMAC is still marginally investment grade, the rating agencies don't expect imminent possibility of default, but they didn't catch it at Worldcom or Enron either.

I would not touch GMAC demand notes if this is your ohsh!t fund. You are very likely looking at the possibility of having your emergency money invested in what is effectively a short term junk bond.

Now if you are looking for an investment in which you take on some credit risk in return for more interest, that's a different story and entirely up to you.

[KB]

Thanks Brewer.

[Tommy_Dolitte]

Brewer - Good catch...I have a friend in finance there who all but verified your assertion. *It's their dire way of marketing for a lifejacket!

[Roger_R]

I don't know how much of the current interest rates trends are a come on for new customers. With the Fed intentions well voiced about higher rates, maybe some of the institutions are banking to suffer a little up front to get new customers. With few phone calls to banks with in my neighborhood I found a savings account paying 3% and a couple of 6 month CD's paying 3.2%. For some reason I'm a little shy about internet banking, but jumped right into one of the neighborhood rates.