There are many online banks that offer certificates of deposit (CDs), but when you are selecting one (or more) for your investment portfolio, you want to take into consideration the interest rate and the reliability of the bank in question. ING Direct is an established online bank that offers competitive rates for their CDs. With this service, you can decide what length of time you wish to invest for. Their CDs range from 6 months in length to 60 months. This will allow you more freedom with your money and it also presents a good opportunity for diversifying the payouts of your CDs as you have the option of staging them to mature at different times.
Another great option that comes with ING’s CDs is the ability to get paid interest monthly or yearly rather than applying it back into the CD (which you can also opt for). If you are on a fixed income, this can be a great way to supplement your payments as you are guaranteed the interest from your CD for the duration of time that you own the CD.
As with all CDs, up to $250,000 of your investment per bank is currently insured through FDIC. One strategy for increasing the security of your money is to supplement the CDs that you have at one bank with another investment at a different bank. In this instance, an online bank like ING Direct is a great option because you can increase the amount of money that is FDIC guaranteed. ING accounts can be opened and funded online, allowing you to never have to leave your home to open such an account.