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Laddering CDs at ING Direct

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Looks like ING Direct, which I lauded in my post about laddering your emergency fund, has now made it even easier to ladder you CDs by letting you open multiple CDs at multiple maturities all on one page.

If you have an account (if you don’t, you can open one through a referral link on ING Direct $25 new account bonus referral page and get $25 for a $250 deposit), the easiest thing for you to do is to go to their Orange CD laddering page. If you aren’t logged in, that link will take you to a login screen. After you log in, you’ll be presented with the normal account screen. Simple come back and click on the link again and it should take you to a screen that looks like this:

ING Direct Laddering CDs Screenshot

As you can see, the 6-, 9- and 12- month CDs are all at the 3.30% rate (not exactly the best, but you can’t beat the convenience and simplicity that ING Direct brings to the table) and you can open all three simply by entering values on one page.

Here are some recommendations or ideas I wanted to share:

  • Name the CDs with the rate you’re getting (conver 3.30% to 330, because the naming system doesn’t allow special characters),
  • Don’t label the period of the CD, such as 12 (or 6 or 9) month CD because that will change month and eventually every CD will be a 12 month CD,
  • and, I wouldn’t write in the maturity date because that will be listed in your account snapshot (the “Account Type” will be Orange CD [maturity date]).

One final word of advice about ING Direct CDs, they’re default set to renew upon maturity. You’ll want to change that for your 6- and 9- month CDs because you will change them out for 12 month CDs once they mature. You can do this by clicking on the CD, clicking on the Account Maintenance link or icon, and change the Account Maturity to either closer or “Renew Principal Only to:” a 12 month CD (with interest rolling into the main account).

If anyone from ING is reading, any chance you guys could sort the Orange CDs in order of ascending maturity? That’d be nice!

Enjoy laddering!

{ 7 comments, please add your thoughts now! }

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7 Responses to “Laddering CDs at ING Direct”

  1. Tom says:

    Looks like ING is responding to what the customers are looking for. Great walkthrough on your other post!

    One quesiton though, what is the benefit of doing a CD ladder than keeping all of your E-fund in a high interest savings account like WaMu which offers 3.3%?

  2. jim says:

    The only advantage is if you get a CD rate that’s higher than what you can get otherwise, so in your case you wouldn’t want to put it into an ING Direct ladder but you might want to consider another bank’s CDs for a ladder.

  3. Tom says:

    Ok thanks!

    I was browsing bankrate and found that GMAC has CDs going from 3.5% APY for a 3 month to 4.35% for a 5 year (12 month is at 3.9%).

  4. Everytime I read one of your posts about ING I get tempted to sign up…I enjoy having all of my accounts under one roof (USAA), but I don’t know how much longer I can go! haha…

  5. I understand the whole concept of CD laddering, just wondering the advantages of putting your money in a CD as opposed to putting your money into a money market (where it is liquid) and an index fund (with a better rate).

  6. jim says:

    You would pick CDs that have higher yields than the MMA and CDs are guaranteed returns, whereas index funds are not.

  7. Ken says:

    Another advantage of a CD over a money market account is that the rate is locked during the term. With money market accounts, the rates can change at any time. This rate lock can be a big advantage when interest rates are falling. However, it can be a liability when rates rise.


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