Interest Rate Cuts Affect Banks

The banks have taken a cue from the Fed and cut rates on their products. ING Direct announced lower rates on deposit products. The Orange Savings Account now pays 4.2% APY (vs 4.3% prior to the cut).

On the bright side, a number of banks have changed the prime lending rate. Most have gone to 7.5% from 7.75%. A lower prime rate means that you'll be able to borrow for less. Auto loans, adjustable rate mortgages, and consumer credit can all be influenced by the prime rate.

Further reading:

• ING Direct Review
• How Adjustable Rate Mortgages Work