ING Direct just raised its 12-month CD rate from 1.75% To 2.00% APY. This is listed in ING Direct's regular CD rates table as of 12/11/09. It's not an Added Value CD which requires new money. I doubt this will last long, so if you're looking for a competitive rate on a 1-year CD, don't wait.
I've been an ING Direct customer for several years. I haven't found another online bank that makes it easier to open and manage CDs. I described my experience opening an ING Direct CD in October. The only issue is that they don't allow you to include POD beneficiaries.
ING Direct has been a FDIC member since 2000 (FDIC Certificate # 35489). For more info on ING Direct's financial condition and ING's future divestiture of ING Direct, refer to my last ING Direct post.
Thanks to the reader who mentioned this rate increase in the comments. I would like to also point out that this 12-month CD rate is already listed at the CD rates table at DepositAccounts.com. My technical partner has done a great job coding this new site so it'll fetch rates automatically from the banks' websites. So be sure to check these tables daily. Refer to my latest update on DepositAccounts.com for more info.