Questions about ING CD's - Is the rate variable?

[Mellman]

Was considering changing to emmigrant, or maybe presidential but figure if i know i don't need the money in the next year, why not just put it in a CD instead. My question is - are CD's from ING fixed or variable interest rates? I.E. the fed hikes rates again am I locked in at 4.2% for a 1 year CD? Or do i gain the extra interest. Its sortof unclear on their website about that.

FROM ING

With No fees and No minimums, ALL your money works harder for you. There are no fees to open or maintain an Orange CD and no minimums. You get our highest available rate per term regardless of how much or how little you deposit. Interest earned on your Orange CD will be paid at maturity or you can choose to receive interest disbursements on a monthly or yearly basis (on the anniversary date of the account opening). Interest disbursements can be sent to either an Orange Savings Account or a linked account. As with any CD, should you decide to withdraw your deposit before the end of the term, certain penalties will apply. The early withdrawal penalty for the one year Orange CD is three (3) months of interest regardless of when, prior to maturity, you make a withdrawal. The early withdrawal penalty for Orange CDs with a term longer than one year is six (6) months of interest regardless of when, prior to maturity, you make a withdrawal. Depending on how early you redeem an Orange CD, the resulting penalty may be greater than the interest that has been earned on the deposit.

So basically this means...for a 1 year CD if i take it out early its 3 months of the interest as a penalty. - do you get the regular interest rate on the money, or is it just the same as if the money was never in ING's hands in the first place?

Does emmigrant bank offer CD's?

If i have ~ $5000 that im considering putting into a CD is there another place I should consider putting it? I have a mutual fun (templeton growth A) that's doing fairly well - but Thats not very liquid.

So I dont need this $5000 to be as liquid as a savings account, but if an emergency comes up and I need it, I'd like to be able to access it without severe penalties. I'm very confident the $5000 can sit for at least 1 year, but until I graduate and have a steady income i'd rather not invest it for longer then a period of 1 year

Thanks,
-Matt

 

[Kalbi]

CD rates are locked for the length of the CD...that's the whole frikken point.

 

[Mellman]

I swore i'd seen some CD's that weren't "frickken" locked - which is why I asked thanks......

 

[seanbigdealer]

There are many different types of CDs, including callable and variable-rate CDs.

http://www.ameritrade.com/education/html/encyclopedia/tutorial3/t3_s7.html

 

[HyTekJosh]

CDs at ING are not variable. I have 4 or 5 CDs with them with over $20,000 invested. Rates ranging from 4.1% to 4.65%.

 

[dionx]

try government I-bods, if you know you wont need it for at least a year. right now you'd be earning at least 6.8% for the next 6 months. after that the rate adjust depending on inflation. and the only penalty to withdraw after 1 year but before 5 years is that you forfeit the last 3 months of interest gained.