Slight Dip in ING Direct's Long Term CD Rates

The yield curve gets flatter at ING Direct. A flat yield curve means there's not much difference between short term rates and long term rates. ING Direct's CD rates are a perfect example. For the last several weeks, ING Direct offered 1yr CDs at 4.15%, 2yr at 4.50% and 5yr at 4.75%. Today, CDs longer than 1yr dropped by about 0.1% to 0.2%. The new 2yr rate is 4.40% and the 5yr rate is 4.60%. The 1yr remains the same at 4.15%.

So now there's even less incentive to lock your money into a longterm CD especially when the Fed will likely continue the trend of raising rates. By next year at this time, we may see money market accounts reach 4.60%.