I'm interested in opening either a savings account or a CD with ING direct...?

well, with any bank - that's pretty much irrelevant...i'm a little confused about the APY's (i'm JUST getting started with this!). The savings account has an APY of 3.00% and a 6 month CD has any APY of 2.75% - longer terms drop down to 2.50%. I always thought a CD was a better investment? Wouldn't i be earning the most interest with the savings account? Can anyone explain this to me? Any tips for a beginner??

Oh okay...i see! But then, at this time, wouldn't it make more sense for my to keep it in the savings account? Since it has a higher APY?? Why would i open up a CD if i'd be earning higher interest with the savings?

CD's follow the fed rates....when they get cut...CD rates get cut.....but, since you're just starting out......You should have short term goals.....every time your savings hits a $1K....move it to a CD......over time, you will have money amounts coming due......at different intervals...

That way, 1) you get used to locking up money for finite periods of time.....2) you will be better informed as time goes by and make more savvy investment choices and have money to do so....

You need to do some research about investment options.

CNN, MSN, and Yahoo all have info about investing.

They will provide the basics.

If you are looking to invest long-term (greater than 5 years) mutual funds may be your best option.

You can also find a financial/private wealth adviser to help you with options in regards to growing your savings. One off the top of my head is Macquarie Bank's Macquarie Private Wealth - http://www.macquarieprivatewealth.com.au