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Emigrant Direct to 4.5%

Remember when ING Direct [3] only gave you 2.60% [4]? Well, now Emigrant Direct [5] is coming at you with 4.50%, still a hair behind ING Direct’s promotional rate (until April 15th) of 4.75% and HSBC’s promotional rate (until April 30th) of 4.80%. I’m willing to bet even money that after their respective promotions, ING will dip to 4.25% and HSBC will dip to 4.50%. Why?

ING hasn’t been the leader in the pack since Emigrant appeared. They’ve had the fattest funds and only rate chasers have been moving from account to account. They only boosted the rates to get new money. After their 4.75% promo, they’ll move it down to 4.25% which is just high enough to convince people it’s not worth it to move cash around to another account earning only 0.25% more a year. HSBC? Same logic, except they’re the new kid on the block so they have to keep battling it out with Emigrant.

These aren’t exactly mind-blowing predictions, rates should be going up since the federal funds rate has been creeping upwards with each FOMC meeting.

I am, of course, making this all up as I go along. 🙂

(If you want a ING Direct new account referral, contact me [6]. You get $25, I get $10, and everyone leaves happy. Thanks!)