Out at the peak

Friday, January 20, 2006

4.75% ING Direct promotion

ING Direct Winter Save Up Sale will give you 4.75% until April 15th with new deposits (minus withdrawls). If you want to open a new account send me an email regarding ING Direct, I can send you a referral link which will give you a bonus of $25 with a deposit of $250+. (In turn they give me $10, and everyone wins.)

During the promotion, I suspect Emigrant Direct (4.0%) is going to lose a lot of funds. After the ING (normally 3.8%) promotion is over, I predict HSBC (4.25%) will be seeing a lot of new funds. I hope this encourages more internet banking competition.

9 Comments:

  • I just hooked up with a 6 mo CD thru world savings @4.86 APY


    fatwallet.com is an excellent site and they have a thread that lists the highest paying cd's and MMA. That's where I found out about it. WS's CD is not even listed on bankrates site, which the lenders have to pay for their rate to be listed.

    BTW - I also have a MMA through superior savings of NE since Nov that is paying 4.50 APY - highest in the nation. 25k min.

    By Blogger thejdog, at 8:16 PM  

  • thejdog: Excellent; I love FatWallet too. It sounds like Superior Savings is available to local residence (or no?).

    Bankrate is really bad as they do not track the latest and greatest rates. Lagged copy of FW rates:
    http://ibankdesign.com/board/index.php?showtopic=1293

    I am getting 4.5% on my MMA (treasury indexed + fixed rate, 10K min). I don't even mention this account as it is local only and new accounts are closed off to the public.

    The best 3mo promo rate is 5.01% from Everbank (NetChecking), but there is only a bonus if you close the account.

    By Blogger Out at the peak, at 9:42 PM  

  • out at the peak - Everbank states on their site they pay 4.9% APY on a 5 year CD.

    thejdog - 4month World Savings = 4.51% APY.

    World Savings is THE BEST RATE! Only 4 months! We all know rates are going up, so why lock in for more than 4 months??

    By Blogger mtnrunner2, at 11:08 PM  

  • The ING 4.75% requires a 1.5 year or something long like that.

    I called my local credit union to see if they could match the World Savings rate, and they said they could do 9 months at 4.1%. So I'll be taking my money over to World Savings. Now here's the question: Why is World Savings so desperately in need of new deposits? What is going on over there that they have to pay such a high rate to improve their cash flow or reserves, or are they gearing up for a big loan promotion?

    By Blogger mtnrunner2, at 11:10 PM  

  • Aha - I just found out why World Savings is in need of money. From their website:

    World Savings Bank is one of the nation's few
    remaining portfolio mortgage lenders, keeping
    loans rather than selling them on to secondary
    markets. This allows the bank to promise and
    deliver on a high standard of customer service.


    My guess - they must be having trouble collecting on their loans, and need quick cash to cover the problems. I don't know if I should go with this bank after all. FDIC insurance or not, why test the system?

    By Blogger mtnrunner2, at 11:14 PM  

  • mtnrunner2: Everbank has a 3mo promotion like ING, but it is for their "NetChecking" checking account, not CD. The promotion is shown on the front page, lower right, first quote.

    And thejdog said his 4.5% was a MMA and not CD as well.

    So ING has some fine print about your funds during the promo? It's not for the account in general?

    If you are worried that you might have to rely on FDIC, then it might not be a good choice. I should research the history of FDIC and see how often an institution has become insolvent and FDIC pays up.

    By Blogger Out at the peak, at 11:40 PM  

  • The FDIC has an excellent record of paying during a bank insolvency, and I've heard they pay within 30 days.

    IMO I wouldn't be too worried about World Savings. They have over $100 billion in assets and are 4 star rated. Of course I also do not believe the sky is falling. The days of extreme excess are coing to an end.

    Out at the peak: I see you're a strong advocate of foreign currency plays. I change my mind every day whether I want to jump into this. See, I'm not that concerned about my liquid USD assets losing value, as I plan to jump back into RE in the next few years. RE prices will fall alot faster than the USD. I just want to make money off a foreign CD. Sounds to me like it's more of a hedge than a solid money maker.

    BTW - good blog. Love the topic.

    By Blogger thejdog, at 12:02 PM  

  • thejdog: Thanks.
    The foreign CDs are a hedge against the USD. And the foreign rate is a hedge against USD strength. ;-)

    Warren Buffet lost a lot of money betting against USD last year, but he's still doing it this year. He knows it's a good bet, but it all depends if the world starts to see that USD is not the world reserve currency anymore.

    You should be proud of your domestic fixed income stance. I would not be surprised if in a few years, the people who bought CDs did better than my portfolio. I am taking the risk in hopes I can retire sooner.

    My biggest worry is Ben Bernanke is going to make mistakes which cause hyperinflation. Will this cause us to be poor? It would hurt a lot. I wish to see deflation, but Bernanke has already written books about how bad deflation is. So he will avoid deflation at all costs.

    By Blogger Out at the peak, at 1:36 PM  

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