Over on the Bucks blog, Ann Carnns is reporting that as of October 21, ING lowered the rate on its Direct savings account from one to .9 per cent.
On paper that’s not impressive, but when a friend explained how he’s getting a better rate on his American Express account, it made me question another’s decision to stay with the web-only bank.
The move translates to a 10 per cent drop on ING’s APY. So while my friend might enjoy the ease and convenience of using the bank, he’ll have to come to terms with its drastic rate reduction.
Perhaps he’ll decide to move his funds to a direct competitor like American Express, Discover, or Sallie Mae, as Carnns pointed out. Or maybe he’ll succumb to online bank inertia and come to regret his decision as more changes get underway with Capital One’s proposed acquisition of the bank.
What do would you do? Stick out the lousy APR or switch banks?