ING Direct Reduces Rates on Most CDs

After this latest CD rate change at ING Direct, new money in the Orange Savings Account even beats out a 5-year CD. ING Direct lowered the rates on all of its CDs except on the 18-month term. The short-term CD rates were reduced by 0.05%. The long-term CDs over 18-months were reduced by 0.15%. The below list has the details:

CD Term   APY
6 month   4.15% (down from 4.20%)
9 month   4.20% (down from 4.25%)
12 month  4.35% (down from 4.40%)
18 month  4.50%
24 month  4.60% (down from 4.75%)
30 month  4.60% (down from 4.75%)
36 month  4.60% (down from 4.75%)
48 month  4.65% (dowm from 4.80%)
60 month  4.70% (down from 4.85%)

As I mentioned in this previous post, the rates of long-term CDs have been trending down over the past month or two. This move by ING Direct continues this trend. However, this is the first I've seen a decrease in short-term CD rates by a major online bank. With the Fed expected to be ending its tightening policy this year, this trend may continue.

Refer to this post for more info on ING's 4.75% promo and this post for info on ING's last certificate of deposit rate change.