Added Another Rung on Our CD Ladder

by Kevin on October 9, 2008

Back in September we made the decision to start a CD ladder with ING Direct. We put about 1/6th of our emergency fund in a CD at 3.75%.

Earlier this week I added another 1/6th of the emergency fund to ING in a CD at 3.75%. So we now have two “rungs” on our CD ladder. It’s a good thing I did it earlier this week, too. The Fed dropped their rate 0.5%. No big deal right? Well, ING Direct’s savings rates have come down as well.

If you’re considering banking with ING (which, by the way, I still love even with slightly lower rates) this is what you should see now:

  • Electric Checking account ($0 – $49,999) earns 1.50% APY (down from 1.75%)
  • Online Savings account earns 2.75% APY (down from 3%)
  • 6 month CD earns 3.50% (down from 3.75%)

Rate changes aren’t exactly my favorite thing in the world. Yet, I still believe ING Direct is one of the best online banks out there. Their online security features are great, and customer service is top notch. Hopefully the Fed will raise rates sometime in the future and get those savings rates back up there.

For now, at least we’ve locked in 1/3 of our emergency fund at a slightly higher rate.


Kevin Wright October 9, 2008 at 9:37 am

Nice Job. I like the CD ladder idea and plan on doing that myself. Do you use ING checking as your main account?

Kevin October 9, 2008 at 10:32 am

@Kevin: Yes. I wrote about what accounts we use back in January:

ING is our “main” checking… we do keep a checking account with real checks at a local brick and mortar.

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