ING Raises Rates on CDs, One Year at 4% APY

ING Direct has raised the rates on its 6, 12, and 18 month CDs. They are now moderately competitive although still not at the top of the rate tables.

The 6 month CD yields 3.75% APY while the 12 month CD and 18 month CD both yield 4% APY.

All CDs have a minimum balance of $1 to open, the lowest minimum balance of any of the banks covered on the BestCashCow rate tables.

ING Direct was one of the earlier virtual banks and from 2001 to 2004 was a rate leader. Over the last four years their rates have been less competitive although they have continued to receive high marks for ease-of-opening an account and customer service.

CDs can be opened online and automatically linked to a checking account so that money can be transferred via ACH.

ING Direct has a 4-start Bauer rating, which ranks it as being in good financial condition.