How is interest calculated on a Business Certificate of Deposit?
Interest on your Business CD is accrued daily and compounded monthly.  

Is there a penalty for early withdrawal?
As with any CD, there is a penalty for withdrawal prior to the maturity date. The early withdrawal penalty for a Business CD with a term that is 12 months or less is three (3) months of interest regardless of when, prior to maturity, you make a withdrawal. The early withdrawal penalty for a Business CD with a term that is longer than 12 months is six (6) months of interest regardless of when, prior to maturity, you make a withdrawal.  

Depending on how early you redeem a Business CD, the resulting penalty may be greater than the interest that has been earned on the deposit.  

Is the account insured?
Your CD deposits at ING DIRECT are FDIC insured up to $250,000 per depositor (keep in mind that the FDIC treats deposits owned by a sole proprietorship and by the individual associated with it as being owned by the same person). For all other Business Entities such as Non Profit, Corporations, LLC, and Partnerships the FDIC insurance is $250,000 per Business. ING DIRECT is registered with the FDIC under the name ING Bank, fsb. and our FDIC certificate number is 35489. You can learn more at www.fdic.gov.

What is a CD Ladder?
A CD ladder helps you earn an even higher return on your savings. A ladder consists of multiple, sequential CDs all opened at the same time. Each “rung of your ladder” represents a different CD term and your ladder can contain as few or as many rungs as you like. For example, a ladder could consist of 12, 24, 36, 48 and 60-month CDs. For a less aggressive CD ladder you can choose shorter terms - for example, a 6, 12, 18, 24 and 30-month ladder which keeps your money where you need it, when you need it.  

Let’s say you have $10,000 to invest and want to start a 5 rung, annual ladder (12, 24, 36, 48 and 60-month CDs). You could invest $2,000 in each term. As each CD matures, re-invest the principal and interest into the longest term on your CD Ladder (in this case a 60-month CD). With this scenario, a portion of your money will be earning the higher rate of a longer-term CD and you will always have at least $2,000 becoming available each year should you need access to your money. Just imagine in a couple of years you’ll be earning the interest rate of a 60-month CD on all of your CDs, yet a portion of your money is always within a year of maturing!  

All Business CDs default to roll over automatically for the same term. To optimize and extend the life of your CD ladder, simply change the maturity instructions for each Business CD to roll over to the longest term of your CD ladder, for example, the 60-month. You can do this any time prior to maturity by logging into your account, clicking on the ‘Account Maintenance’ icon in your CD account and changing the ‘Account Maturity’ options.  

Can I receive interest disbursements from my Business Certificate of Deposit?
Yes. 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 a Business Savings Account or a verified external account. The ability to select or deselect interest disbursement is only presented for 20 days from account opening. Once selected, you can change the account to which interest is disbursed at any time.

Terms & Conditions – Business CD Account

   
Still have questions? Please contact us and we’d be happy to help.