ING Direct is offering a competitive 2.25% APY on a 12-month CD when it is funded with new money (they call it a Value Added CD). The rate (as of 10/7/2009) is one of the best 12-month CD rates according to the BestCashCow rate tables. It's been a long time since ING has been at the top of any rate table. It's good to see since ING has one of the easiest to use online banking interfaces. For those that don't remember, ING was an early pioneer earlier this decade in offering a stand-alone high yield, online savings account.
ING is currently paying 2.10% APY on a 1-year CD. When you fund the CD from a non-ING source, they'll add another 15 basis points for a total return of 2.25% APY. There is no minimum balance on the CD and ING has an easy account opening process. Everything can be done electronically and funding is done via an ACH electronic transfer from another bank account. Transferring money out can also be done via an ACH electronic transfer and in my experience takes between 2-3 business days. ING allows joint accounts, living trust accounts and IRAs.
ING Direct has adequate ratings for safety and soundness. Bauer Financial gives it 3 out of 5 stars (adequate), down from 4 stars last year. The bank has $90 billion in assets, making it the largest "online only" player out there.
Please share any experiences you have with ING and the Value Added CD.
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ING Electric Orange Account by BestCash Admin - Sep 07, 2007
ING Direct Raises Rate on 18 Month CD to 4.50% APY by BankMan - Sep 18, 2008
A No-Brainer Among No-Brainers by JRodgers - Nov 28, 2008.
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