ING Direct raised the rate on its 18 month CD to 4.5% APY, making it the best 18 month cd rate according to the BestCashCow rate tables.

While ING Direct pioneered the high yield online savings account, it has not offered highly competitive rates for several years. Recently, ING has begun to offer more competitive rate products. It recently starting offering a 12 month, 4% APY CD which is competitive with other top cd rates.

That's good news because ING has a very easy account opening process. It can all be done online and the bank offers online validation of an account as well as ACH transfers into and out of their savings accounts and CDs. Other features of their CDs include:

• No minimum deposit.
• The ability to automatically transfer interest monthly or annually to an ING Savings account or a linked account at another bank.
• Notification 35 days prior to maturity and 10 days after maturity to close the CD, change the amount, or change the term - without penalty.
• The ability to open joing account CD or open the CD as a living trust.

See all 18 month CD rates.

We noticed today that Crestmark Bank is not taking new CD money which we thought was a little strange. They generally offer competitive rates and as of yesterday had the best 3 month CD rate on the BestCashCow rate tables. I called them to learn more and spoke with Gus Mattia, a Senior Vice President and the bank's Controller.

Mr. Mattia told me that all is fine at Crestmark and that pulling out of the market is something they do from time-to-time when they get behind in processing paperwork. He also told me that Crestmark has no exposure to the subprime market or even the consumer lending market. They do not do consumer loans. Instead, Crestmark lends to businesses for such things as factoring receivables, dealing with seasonal cash flow issues, funding sales growth, and more. Mr. Mattia told me they have been in operation for 12 years, are profitable, and are well capitalized.

He also told me that they will probably start accepting cd deposits again in the next two to three days once they are caught up with the paperwork.

Crestmark Bank has a Bauer rating of 3 1/2 starts out of 5.

Meanwhile, find the best online CD rates here and the best online savings rates here.

Editor's Note: Subsequent to the original publication of this article, the FDIC acted to permanently raise FDIC ownership to $250,000 per deposit in each ownership category at a single financial institution. More information on FDIC coverage can be found at fdic.gov.

In October, the FDIC raised the limit on deposit insurance from $100,000 per person to $250,000 per person. But the increase is not permanent. And after December 31, 2009, FDIC is set to roll back its coverage. That's important information for anyone interested in investing in longer-term certificates of deposit (cds).

Why?

If you invest $200,000 in a five year CD now, you're entire $200,000 will be covered until December 31, 2009. After that, once coverage rolls back, only $100,000 will be covered, even though when you opened the CD the entire amount was insured. I called the FDIC today and they confirmed this.

So, if you are interested in opening a longer-term CD and want your investment to remain fully insured, make sure you stay within the $100,000 limit. There is a good chance that the FDIC will extend the increased coverage, but not guarantee. And you don't want to be stuck in a CD with a portion of your investment no longer insured.