Wednesday, January 12, 2011

Open An ING IRA and Get $50 - Free!

INGDirect is offering a $50 bonus to new IRA clients from now until February 7th.

Some of the highlights of an ING IRA are:
  • FDIC-insured IRA savings and CDs.
  • No fees
  • No minimums
  • No market risk


Wait, "no market risk"? That sounds too good to be true...

That's what I thought, and it turns out that it is...sort of. Anytime you see an investment advertised as "no risk" or "zero risk", you should be seeing red flags flying all over . But ING Direct is not a scam site, or a fly-by-night operation, so what gives?

Well, it turns out that ING is really selling IRA savings accounts or CDs, not a traditionally investment IRA where you put your money in stocks, bonds, ETF's and mutual funds.

To be honest, I'm a little more than a bit put off by the marketing of an "IRA" with the promise to "Earn a guaranteed return with no market risk"!

I'm just not used to ING Direct using such tricky marketing.

Anyway, slick marketing aside, it's still a good deal if you're looking to stash some cash in an IRA - especially if you're uncomfortable with the stock market but still want some of the tax benefits of an IRA.

Here's how to get the bonus:

  1. Open an FDIC-insured IRA (savings or CD)
  2. Deposit $200 into your account by February 7
  3. Get a $50 bonus (counts toward your 2011 IRA contribution limit)

The IRA savings account currently sports a 1.10% APY, and CD rates are as follows.

IRA CDs:
Term APY Effective Since
6 Months 0.75% 12/07/2010
9 Months 0.75% 12/07/2010
12 Months 1.00% 12/07/2010
18 Months 1.00% 12/07/2010
24 Months 1.25% 12/07/2010
30 Months 1.25% 12/07/2010
36 Months 1.25% 12/07/2010
48 Months 1.25% 12/07/2010
60 Months 1.25% 12/07/2010

Click here for details

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