Don’t Know Where to Invest? One CD is Paying Off Better than Others

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Thanks to the recession, people—people with jobs anyway—are paying off their credit cards and saving more. But no one seems to know where to put the money they’ve worked so hard to save.

One option: The new Added Value CD from ING Direct. It’s a 12-month CD with an APY of 2.25%. As Bargaineering points out, that’s a 0.15% premium on the online bank’s normal 12-month CD. It’s also better than all the 12-month CDs listed at a recent check at BankRate.com, and there’s no minimum investment required. (If you’re new to CDs—you know, the kind that don’t play music—BankRate.com is loaded with background.)

Why do you get the bonus payoff from ING Direct? Well, the new CD can only be funded with new money. In other words, you can’t transfer in money from another of your ING accounts. This is a play to attract new customers—so sort of a bummer for customers who already have some money with ING Direct (myself included). While 2.25% doesn’t seem all that impressive, it’s better than the competition, and as safe as things get nowadays.