TIAA has a new online banking service that they (shockingly!) decided to call TIAA Direct. Currently they are paying 1.25% on deposit accounts.

. . .

3. Right now, TIAA has rates that are dramatically higher than ING. My guess is that this is temporary until they hit some level of critical mass in their deposits, but TIAA-CREF is such a good organization that I would expect them to remain strong for the long-term.

Considering that their CD rates are at 0.90% APY for 1 year and 1.06% APY for 2 years, I'd say that you're right about the 1.25% on high yield savings being temporary.

It's tempting to open an account there, but I have to think about whether this is just a dance to get a little more temporarily, then have an account to unwind when they get to their desired size.

Patzer