Dedicated to Deposits: Deals, Data, and Discussion

ING Direct's Added Value CD - 2.25% 12-Month CD with New Money


Update 10/23/09: The 12-month CD rate has fallen to 1.75% APY, and there's no longer any mention of a higher rate for the AddedValue CD.

ING Direct just came out with its Added Value CD in which they add an extra 15 basis points to the current 12-month CD rate when you fund the CD with new money from an external source. This results in a very competitive rate of 2.25% APY as of 10/07/09. Unfortunately, you can't transfer from your ING Direct savings account to your linked checking account, and then use it to fund this CD. According to the small print, the new money must increase your total deposit balance with ING Direct above your balance on 10/7/09.

Last Friday ING Direct increased its 12-month CD rate from 1.85% to 2.10% APY. The 2.10% was already competitive. Now with this extra 15 basis points, ING Direct's CD rate is near the top, and it matches MetLife Bank's 12-month special CD rate. The only advantage with MetLife's CDs is that they allow beneficiaries (see post). For some reason, ING Direct doesn't allow beneficiaries on its accounts. They do allow joint accounts, living trust accounts and IRAs. Other than this beneficiaries issue, there's a lot to like with ING Direct CDs. They make it easy to open and manage the CDs. Refer to my ING Direct CD review post for all of the details.

FDIC/Financial Info

ING Direct's ratings for safety and soundness used to be strong, but they're now only average: 3 stars (adeqaute) at BauerFinancial (based on 6/30/09 data) and 3 stars (performing) at (based on 3/31/09 data). It has been a FDIC member since 2000 (FDIC Certificate # 35489). ING Direct is the largest internet-only bank with $90.1 billion in assets and $74.8 billion in deposits. As a comparison, Ally Bank has $42.5 billion in assets and $36.6 billion in deposits.

Other Competitive Certificate of Deposit Rates

For those with at least $25,000 to invest into a CD, you can currently get a higher 1-year CD rate at Alliant Credit Union. Opening and managing the CD may not be as easy as it is at ING Direct, but they do have other advantages such as allowing beneficiaries. For links to Alliant CDs and other top CDs, please refer to the following:

  Tags: ING DIRECT, CD rates, IRA rates

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Comment #1 by Anonymous posted on
If I understand this correctly, you have to have a linked external checking account before you can fund this CD.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
If you're a new ING Direct customer, you will create a link to an external checking account when you open the CD, and the funds will be pulled from this linked account. So any new customer will by default be funding the CD from an external source.

Comment #3 by Anonymous posted on
This new money policy is ridiculous? Can an existing ING direct customer just apply for this new ing "added value CD account" as a new customer?

Comment #4 by scott (anonymous) posted on
Timing on this worked out good for me, Just had an Eloan CD mature and funds transfered into the account I have linked to ING this morning. Was going to take that money and open 14 month 2.25% CD at local CU. Would have been a pain since I need to open under living trust which requires a bunch of paperwork. ING makes it so simple since the trust is already setup there. One downside though, Slow transfers. I opened just now, 10/8, but maturity shows 10/14/10. So I wonder if it doesn't start earning interest till the 10/14/09? Will now wait to see how long it takes for funds from linked account to be pulled

Comment #5 by Snippy (anonymous) posted on
re: Anonymous @ 7:25 on October 7 -

Try actually reading the post in which Banking Guy clearly explains that in order to qualify for the 2.25% APY, the CD must be opened with new money -- not by new customers.

I closed my Orange Savings account a month ago because I was tired of waiting for ING to ever offer competitive rates again. Perhaps the number of depositors taking their money elsewhere finally persuaded ING that they needed to improve their rates, at least temporarily. (I hope so.)

Comment #6 by Jack (anonymous) posted on
This promotion dose not apply to CD in IRA account, the best rate for IRA CD is 2.10%.

Comment #7 by Anonymous posted on
Any financial institution that refuses to allow a beneficiary on it's accounts should be boycotted, or at least severely criticized as loudly and publicly as possible.
The proper designation of an account is the bank's fiduciary responsibility.
There is absolutely no justification for this malfeasance other than laziness & greed.

This is a disturbing trend amongst online banking institutions, and should be recognized as such.

Comment #8 by Anonymous posted on
The promotion is new money coming from an external source, doesnt matter if you are a new customer or an existing. As long as the money comes from your checking account thats linked, you will get the 2.25% APY.

And what makes a bank greedy for not offering a beneficiary? They require a lot of paperwork and ING is a Direct/internet bank. If it doesnt work for you, no one is making you have an account with them.

Comment #9 by Joe (anonymous) posted on
I only get 1.75% for 12 month CDs on the website for a standard CD. Did they already lower their rates from 2.10%?

Comment #10 by Anonymous posted on
I opened an added value CD before the rate dropped and was upset by two things. First, ING debited my external funding account before I verified my deposits. Second, the CD didn't start earning interest until one business day after the debit, so I lost one day's worth of interest. I won't be doing business with ING again.