Dedicated to Deposits: Deals, Data, and Discussion

Another CD Rate Increase at ING Direct

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ING DIRECT
ING Direct raised CD rates on most of its terms today. The 6 and 9-month rates increased to 3.75% APY, and the 12-month rate increased to 4.00% APY. All longer terms also have the 4.00% APY except the 60-month term which has a 4.25% APY. This is the second CD rate hike at ING Direct this month. The last one was on August 12th. The rates on the Orange Savings Account and Electric Orange Account remain the same.

ING Direct CD rates are becoming more competitive, but they are still far behind the leaders. The 6-month CD yield is 50 basis points under what Corus Bank is now offering (see post), and the 12-month CD yield is 100 basis points under WaMu's 12-month CD promotional yield (see post). But ING Direct has some advantages that may make up for the lower rates for some people. One advantage ING Direct offers is an easy CD account opening process that's all electronic. Managing the CD is also easy. When the CD matures, you can log in and immediately transfer it back to the funding account or your ING savings account.

ING Direct is also a good choice for those looking for a strong bank. However, its ratings have recently gone down by one star at both BauerFinancial and Bankrate. It's currently rated 3 stars (performing) at Bankrate.com and 4 stars (excellent) at BauerFinancial based on 3/31/08 data. You can review more of their financials from this FDIC page.

Thanks to the reader who emailed me news of these new CD rates.
  Tags: ING DIRECT, CD rates

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Comments
4 comments.
Comment #1 by donreith (anonymous) posted on
donreith
They also give a .10% bonus on current rates when you renew a CD.

1
Comment #2 by gaelicwench (anonymous) posted on
gaelicwench
I've got a CD that willmature the end of October. I plan to add to the amount and lock it up for the increased rates.

What I like about ING is that there is no minimum balance - I don't think there are any other finacial institutions who do this. Many are just too far out of reach for me. If I had thousands I could invest in, I'd first want to rid myself of my current debt. Using the snowball effect on the debt, it won't take long before I am debt free.

In the meantime, I am also putting aside a wee bit at a time in a CD, too.

1
Comment #3 by Anonymous posted on
Anonymous
ING its ok. Great navigational site, very easy to understand. The only problem with them is that they are always behind most banks when it comes to rates. I hate switching my money around from bank to bank. 2 months ago I moved 20k to HSBC @3.5 savings. If they would have changed their CD rates then I would have not done the move. I know that in general, rates will keep on going up, so for now I'll be staying put @ HSBC.

1