ING Direct Rates

As you probably know, you will be charged penalties if you withdraw from a CD account before its maturity. The penalties are usually low, but its still preferable to avoid this situation. Therefore, think carefully about when you are likely to need the cash.

If you can afford to freeze your money for a long time, however, you shouldn't always choose the corresponding long-term CD. In the case of ING Direct, the highest rate, 2%, is offered on a 12-month CD, so there's little benefit in choosing 18-month or longer terms. After 12 months, you will need to reinvest your money, but at that time you should be able to find good rates either with ING Direct or with another bank.

The interest can be paid at the end of the term, monthly, or annually. It's probably better to settle for the "end of the term" option, since taking care of small payments is troublesome, and youre likely to forget it and leave it in the checking account without any interest.

Finally, ING Direct offers really low rates on 6- and 9-month Certificates of Deposit. The rates, 1.25%, are lower than their own savings rates. Theres no reason to choose those terms; savings account gives more flexibility and more interest.

Other Terms and Conditions may apply. Additionally, rates may have changed since this offer was posted. Please contact the financial institution for the most recent rate updates and to review the terms of the offer.

This article compares all the different ING Direct bank accounts. ING Direct likes to brand its services with the word "orange," so you have a choice of:

• Orange Savings Accounts
• Electric Orange Checking
• Orange CDs

Your should start by thinking about your need to withdraw cash. If you have some cash that you wont need for 6 months or longer, you should consider Orange CDs. These accounts offer the highest interest rates (1.25%-2%), but early withdrawal results in penalties. Please be careful about choosing the term for a CD account; for help, refer to the article How to Choose CD Term with ING Direct.

If you need ready access to your cash, use Electric Orange Checking. The checking account is used to make payments (online, with checkbooks, via debit card) or to make withdrawals at an ATM. Interest earned on a checking account depends on your balance: below $50,000, it is a tiny 0.25%, but above $50,000 it is a quite impressive 1.5%.

Finally, if you have less than $50,000 to deposit, and dont mind some minor hassle getting access to the funds, you should consider Orange Savings Account. Its the same as a checking account, with two exceptions:

• it pays 1.3% interest regardless of your balance
• when you need cash, you first have to transfer it from the savings to the checking account; only then can you withdraw cash from an ATM or pay for your purchases using a debit card

One trick with savings accounts is that the federal law requires the banks to limit withdrawals to 6 per month. However, this is never enforced. You can withdraw as often as you like. Even if youre unlucky, the worst thing that can happen is that your account is closed, and the money is given back to you.

A 10 point Declaration of Financial Independence by ING Direct.

A perfect message for these financial times. ING Direct has authored a new declaration titled "We, The Savers" which speaks to being in control of your financial life. We cant individually solve the huge financial issues our nation is facing, but if more people took a few simple steps forward towards additional financial responsibility we are all collectively better off. The ING Direct Declaration of Financial Independence is a great start.

Here is the list:
1. We will spend less than we earn.
2. We will use our home as a savings account.
3. We will take care of our money.
4. We will defend our credit worthiness.
5. We will ignore unsolicited credit card marketing.
6. We will know the cost of borrowing.
7. We will invest for the long term.
8. We will take care of the things we have.
9. We will remember what matters.
10. We will be heard.

You can read more about each of the declarations at WetheSavers.com, even sign it and see others that are participating. If you agree, sign it and pass it on. A great touch is the free bumper sticker signers qualify for at the banks online store. We all need a new bumper sticker to cover the I love my SUV one, and its a great way to start a conversation about taking more control of your personal finances.