With all the talk of the Federal Funds rate being cut yet again soon I guess some banks (like ING Direct) are pre-emptively cutting their interest rates.
I logged onto my ING Direct account this morning to see that dreaded line.
Oct 9, 2008 Interest Rate Change to 2.716% (2.75% APY)
If I had logged on yesterday I guess this post would’ve also been written then. The curreny feeling is people who save money are getting the shafted with low interest rates and higher inflation.
3.00% to 2.75% is roughly an 8% drop. I earned about $40 in interest from ING Direct last month so I guess dropping yields don’t affect me THAT much.
How much do you need to earn $40/month in interest?
At the 3% rate, roughly $16,000 average daily balance.