ING Direct No Longer Competitive?

When I logged on to my ING Direct account today I saw that the interest rate on the savings account had again been reduced. Here are the last 12 months of changes:

(listed as the yearly APR)
03/19/08 - 3.00%
10/09/08 - 2.75%
12/30/08 - 2.50%
01/20/09 - 2.40%
02/03/09 - 2.20%
02/18/09 - 1.85%

In only 5 months it has dropped almost 1%, and almost in 1/2 in a year!. Notice how the changes are much more frequent, too! The Electric Orange Checking account earns a mere .50%. Their CD's, which only a few months ago were at 4%, are now 1.25%-2%!

I have bank accounts at two local banks (one with just a checking, one with both a checking and a savings). Both banks offer free bill pay. The local credit union offers a 1% interest rate in its savings account. If ING keeps it up, I may just end up making a local bank my main account. The local credit union offers 1-year CD's at 2.75%.

I would still keep my ING Account, of course, as it's convienient to transfer money instantly to Sharebuilder, and who knows, maybe a couple years down the road their rates will go back up again.