Dedicated to Deposits: Deals, Data, and Discussion

Update on ING Direct CDs - Update


ING Direct raised CD rates on most of its terms today. The 6 and 9-month rates increased to 3.50% and 3.60% APY. The 12-month CD rate increased to 3.70% APY. There is no minimum deposit requirement.

These CD rates are about 60 basis points lower than the most competitive rates avaiable today (see weekly rate summary), 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 and 4 stars (excellent) at BauerFinancial based on 3/31/08 data. You can review more of their financials from this FDIC page.

Some of the ING Direct's certificate of deposit details include:
  • Early withdrawal penalty for terms of 12 or fewer months is 3 months interest.
  • Joint accounts and Living Trust accounts can be opened.
  • The following accounts are not available: business, power of attorney, beneficiary or individual retirement accounts.

If you're going to open an ING Direct CD, it makes sense to first open an ING Direct savings account and take advantage of a $25 refer-a-friend bonus. Once you open an ING CD, you are no longer eligible for the savings account bonus. The Orange Savings Account has no minimum balance requirements or monthly fees.

If you want this $25 ING bonus for the savings or checking account, you can email me at bankdeals at gmail dot com. Please include your first and last name, and let me know which account referral you want (savings or checking). Note, the bonus requires a minimum initial deposit of $250.

Thanks to the reader who emailed me news of these new CD rates.

Update 8/13/08: Added clarifications about the bonus.

  Tags: ING DIRECT, CD rates

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