Slight Rise in ING Direct CD Rates

ING Direct slightly increased its rates on all of its CDs. The new one year CD is now 4.20% APY (up from 4.15%). The new CD rates for 2, 3, 4 and 5 years are now: 4.30%, 4.40%, 4.40%, and 4.50%. Previously, the rates were 4.20%, 4.30%, 4.35%, and 4.40%. These new rates are still lower than ING's CD rates at the end of August. At that time 2 through 5 year CD rates were 4.40%, 4.45%, 4.50%, and 4.60%.

There is still not much difference between the interest rate of a 1 year CD and a 5 year CD (0.30% difference). So there's not much to be gained by committing to a longer term CD.