So I was looking at ING direct's CD rates, and noticed that unless I get a 5-year CD, the interest rate is the same or worse than my Orange Savings account. Why would I choose to have an account that's less liquid and doesn't give me any better interest rates? Is there some other advantage to CDs that I'm not thinking about here, or is this a bad deal?

2 Answers 2


Single biggest difference will be the interest rate is locked in - if the rate for savings accounts goes down it wont affect you.

Given how low the current savings account rates are, it seems unlikely they will go lower, but there are no guarantees.


It's like a variable vs fixed-rate mortgage. The savings account will fluctuate. Some people prefer a fixed rate, as you never need to check what the rate is again.

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