Dollar Savings Direct, ING Drop Savings Rates
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Dollar Savings Direct dropped their savings rate to 3.20% (down from 3.5% and 4.0% recently). ING Direct is now at 2.2% (from 2.4%). ING Direct is probably my favorite online savings account because they don’t drop rates drastically like their competitors and they raise rates faster when general interest rates are rising. Get a $25 bonus for opening an account! Just email me. HSBC Direct is at 2.45%.
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toastyaroma said:
Dollar savings direct is down again, to 3.05%.
February 13th, 2009 at 11:19 pm -
haha Neverwillknow said:
ING is also down as of 2/19/2009 to 1.85%
February 18th, 2009 at 11:33 pm -
D-S-Deceptive said:
FYI, DSD’s rate has now dropped to 2.47 (2.50 APY)… but that isn’t the problem I’m having with this bank, rates are dropping everywhere. Instead, it is THIS statement, still posted on the home page of their web site as well as on their customer login page as of today (3/6/09):
“America’s Highest Rate*”
The note attached to the asterisk reads:
“*Highest Nationally Advertised Annual Percentage Yield for day of deposit to day of withdrawal savings accounts with no fees and $1000 minimum.”
Anyone who does five minutes of research on rates will know that DSD is no longer really offering “America’s Highest Rate” (without the need for an asterisk) as they were just a few weeks ago. But they continue to make this claim based on a carefully-crafted sentence that includes the phrase “and $1000 minimum.” None of the banks offering a higher interest rate currently have a minimum of EXACTLY $1000 — they have minimums ranging from a high of $50,000 and a low of just $1.
So yes, DSD is technically accurate… they do have “America’s Highest Rate*” among all banks that have a $1000 minimum (a grouping that currently includes only a single bank: DSD themselves). Their efforts to solicit business on a claim based on this thin technicality is ill-advised, and demonstrates an intent to deceive both their current and future customers.
I’ll be sending an email message to their customer service department to express concern over this practice. If they stop this effort at deception, I might even keep my cash there a little longer – right now, there’s only about fifteen-hundredths of a percent separating DSD from the banks that truly do have “America’s Highest Rate” so there would be no significant payoff in switching. But if they continue down this path of deception, I’ll be pulling my deposit even if I have to take it to a bank offering a lower rate.
March 5th, 2009 at 11:49 pm