CD Rates Up at ING Direct

ING Direct raised the yields by 25 basis points on its 9-, 12- and 18-month Orange CDs today. Its 12-month CD is now fairly competitive with a yield of 4.25% APY. Below is the full list of the old and new yields.

ING Direct Old and New CD yields as of 10/21/08

Term        Old APY     New APY    Change
 6 month      3.50%     3.50%
 9 month      3.50%     3.75%      +0.25
12 month      4.00%     4.25%      +0.25
18 month      4.00%     4.25%      +0.25
24 month      4.25%     4.25%
30 month      4.00%     4.00%
36 month      4.00%     4.00%
48 month      4.00%     4.00%
60 month      4.25%     4.25%

Please refer to my previous ING Direct post for more details on ING Direct and its CDs. The Orange CDs have no minimum deposit requirements. Another plus is that the CDs can be easily opened and managed online. When the CDs mature, ING Direct will often provide a 0.10% bonus for rolling it into another Orange CD.

ING Direct also increased the rate on the top tier of its Electric Orange Checking Account. The yield increased from 3.25% APY to 3.50% APY for balances of at least $100,000.

These changes reversed some of the rate cuts ING Direct imposed the day after the emergency Fed rate cut. Unfortunately, the Orange Savings Account yield remains at 2.75% APY.

ING Direct's bank deposit products are FDIC insured (FDIC Certificate # 35489)

ING Direct's parent company, ING Group, has recently made news on a capital injection plan provided by the Dutch government (see post).

Tags: ING DIRECT, CD rates