Excellent news!

I just recently opened a CD at ing - guess I know now why the customer service guy was pushing so hard

I wonder if I should pull it now - since I understand the only penalty is half of the interest (which at this point is next to 0). Heck - the ED savings is only a tad below my 1 year CD interest - and I bet it goes past within the year!

Break the Cd, move it over to ED.

Strosg 97 sez: Why would you by a CD when rates are on their way up

Indeed. However, (taking ED out of the picture) how long will it take for ING's savings rate to equal its CD rate? I bet ING savings is not even 3.25 by the end of the year. In the meantime I would be making the difference.

With ED in the pitcure however, the CD is looking pretty lame I admit.

vdadlani219 said:No surprise with the Fed expected to raise the rate .25 later today....I wonder if Emigrant will react and bump their rate to 3.5%?

I'm not thinking that will happen any time soon. My take on it is that their 25 basis point raise from 3.00 to 3.25 was in anticipation of the Fed's move.

FWbroke said:on $10k interest would be ED $325 and ING $280 (just straight not conpounded) that is not enough of a difference for me to move my money away from ING.

Actually thats exactly how much you would make in interest since APY includes the monthly compound.

FWbroke said:on $10k interest would be ED $325 and ING $280 (just straight not conpounded) that is not enough of a difference for me to move my money away from ING.

why not? is this for loyalty reasons or do you feel safer with ING? as far as i'm concerned, the minimal effort it takes on my part to move my money from ED to ING is well worth $45.

if someone were to offer you $5 on the street and all you had to do is bend over and pick it up, would you? it's only $5...

pjhartman said:I'm not thinking that will happen any time soon. My take on it is that their 25 basis point raise from 3.00 to 3.25 was in anticipation of the Fed's move.

Exactly, they basically did it to preempt other banks and stay on top of the yield rankings. There's no need to raise another quarter point when they already did so recently. Not that I wouldn't want one, but it ain't gonna happen.

omg wow

i'm gonna be rich. 2.8 whopping percent!

That's the best part of ING is that since the money compounds annually and they give you day by day cumulative interest amounts, it's just so easy to figure out if it's worth breaking the CD. And again, the reason why it's always best to just ladder and forget about it. I'm not really concerned if ING is lagging by even 50bps to another bank. If I was I'd just throw it into the stock market and blend it into my portfolio. Cash will almost always generate poor returns at the banks (and when it doesn't it's because inflation is on a tear, and so you really aren't making much in real terms).