ING Direct Raises All 12-Month and Longer CDs to 5%

ING Direct just raised the rates to 5% APY on all of their CDs with terms of 12-months and longer. ING had just raised rates on several CDs on April 5th so I hadn't expected another rate change so soon. Thanks to the commenter who mentioned this.

This seems another attempt to reduce the outflow of money now that the Winter Save Up Sale has ended. In the CD rate increases of April 5th, the 9-month APY increased by 0.35% to 4.75%. ING advertised this CD specifically in an email and stated that it would end April 30th.

As I mentioned in the previous post, ING Direct does have two features that no one else has: no minimum deposit and a very easy online system to open CDs.

The table below shows the changes in the CD rates. The biggest change is in the 12-month APY. At the start of April, the 12-month APY was just 4.50%.

Term      Old APY   New APY    Change
6 Month   4.50%     4.50%
9 Month   4.75%     4.75%
12 Month  4.75%     5.00%      +0.25%
18 Month  4.75%     5.00%      +0.25%
24 Month  4.80%     5.00%      +0.20%
30 Month  4.80%     5.00%      +0.20%
36 Month  4.80%     5.00%      +0.20%
48 Month  4.85%     5.00%      +0.15%
60 Month  4.90%     5.00%      +0.10%

Perhaps we'll start seeing a rate war on CDs now. I had just posted on Emigrant's new shorter term CDs. Emigrant's 5% CDs now include a 9-month term. But 5% CDs don't seem so good anymore. When will EmigrantDirect bump up their CD rates? And when will HSBC Direct start offering some decent CD rates? Currently, HSBC's best CD rate is only 4.50% APY for a 15-month term.