Basic question on CDs

Ok, so I decided that I will create a CD ladder with ING and just diversify savings a little with the fixed income.

I have a fundamental question though - I assume CD interest rates will go up with every raise in interest rates bu dear Mr. Greenspan. As of today ING has rates from 2.75% to 4.1% for a 1yr to a 5 yr CD. We all know that interest rates are going to be raising constantly - does it make more sense to wait for a few more Fed rate hikes before locking money into 5 year CDs? Comments? and Suggestions?

I think they will keep raising the discount rate 25 basis points (0.25%) each meeting. This means that CD rates will go up too. I have 4 CDs, a 6 month, two 1-year, and a 2 year. I am sorry I did the 2 year with what I know now. It is just 2.14%, my best CD. If I could do it over again I would stick to 3, 6, and 12-month maturities to avoid locking in low rates as rates rise. I have other investments though, so low-yielding CDs are nothing to whine about for me. They are indeed a very secure investment. I am not an expert but I think the long term CDs should also see higher rates provided that the Fed keeps its present policy.

Note- I do not yet have a degree, I have only invested some money and taken a macroeconomics class.

Rates are up considerablely since this topic was posted. You can find 5 year certificates with rates of 6.0%.

How about a lesson from the O.P. on your laddering example from 2 years ago, and how that has translated for you?

What have you learned, and what can you share??