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.

Related Pages: ING DIRECT, CD rates

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Comment #1 by Anonymous posted on
With ING, you can actually specify in advance what to do with your CD upon maturity. That is to say, my CD was maturing while I was out of the country, and it was trivial to specify on the website to transfer money to a certain account at another bank upon maturity.

Comment #2 by Anonymous posted on
Are you sure you can get the $25 refer-a-friend bonus when you open a CD? I didn't see that option on Ing Direct's website.

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Yes, there is no refer-a-friend bonus for the CD. It's only available for the savings or checking account. I tried to state that if you want a CD, you should first open the savings account with the bonus. If you open the CD first, you are no longer eligible for the $25 bonuses since you are already an ING Direct customer. I've updated the post to clarify this.

Comment #4 by Anonymous posted on
ING is not worth the trouble!! After opening a joint account, I added a
link to an external bank, which had only one of the joint account holders
name on the external account. We are married and have both joint and
individual accounts. ING accepted the link, verified the account, and
accepted a deposit from that account to the ING account. Then they froze my
access to the ING accounts; I could only transfer money into ING. After two
days of trying to get the fraud department on the phone, they explained
that the external account needed to be in both names or needed to be
deleted. This made no sense, but I gave up and deleted the external
account. Then they froze my account completely and put it through a
sixty-day risk review. I had no access to my money and no recourse. Bank