(As of July 2006, EmigrantDirect is paying 5.15% APY at its savings account. Read PFBlog's review and take a try!)
Sadi at Financial Freedom Trek brought to us the news that ING Direct went offensive by bidding up the APY of its flagship Orange Account to 3.00%.
For the record, it is the third rate increase from ING Direct in five weeks' time. If you follow PFBlog, you might remember ING Direct raised the APY to 2.60% on March 2, and pushed it to 2.80% on March 22.
The current market leader, however, is still EmigrantDirect, which offers a very attractive APY of 3.25%. I'm still parking most of my emergency fund at EmigrantDirect. After all, 0.25% difference in APY on $10,000 is still $25 a year, enough to buy more than a week's lunch in our corporate cafeteria.
In this speed, we will soon see banks paying 3.50% or more to attract more savings. 3.50% is a meaningful number to me, because my 5/1 ARM, in its second year now, is also charging me 3.50%. Isn't it too good to be able to collect more interest from my savings than what I pay on mortgage?