Today has seen a drop in CD rates from some of our top online banks.

ING Group, the Dutch based parent company of ING Direct, announced this past week that it intends to scale back its US operations by 2013, stating that it would like to instead focus primarily on its European market.  This US sell-off is part of a restructuring plan by ING that it hopes will allow it to start to pay back the billions of euros in government assistance that it has received.
ING Direct

The past week ended quietly for the FDIC last Friday – at least as far as bank failures are concerned. This is the first time in three months that no bank was closed over the weekend, even as the number of closures for this year nears the 100th mark. The FDIC skipping a week is certainly a welcome reprieve, not only for the banks and consumers, but also for the agency itself which is already feeling the strain of the costs that the slew of bank failures has brought on.

Two major online banks, Ally and ING Direct, have pushed up the rates today on their fixed rate, 12 month CDs, putting them near the top of the list for high yielding CDs.
ING Direct posted a significant increase of +0.25%, while Ally pushed its rate up a modest +0.05%.

Ally and ING Direct Raise CD Rates

Bank
Product
Old
New
Change

Ally
12 mo. CD
2.00%
2.05%
+0.05%

ING Direct
12 mo. CD
1.85%
2.10%
+0.25%

More and more banks have been turning to new and innovative ways of banking. Discover Bank and Ally Bank are just one of the many Banks that have been providing their customers with the convenience of online banking. Cornering the market with their better rates of return on savings and CD’s, these banks are proving to be a good alternative to bigger traditional banks.