Place the following in ~/.inputrc or /etc/inputrc
While ~/.inputrc works sometimes, it doesn’t on all systems.

"\e[1~": beginning-of-line
"\e[4~": end-of-line
"\e[5~": beginning-of-history
"\e[6~": end-of-history
"\e[3~": delete-char
"\e[2~": quoted-insert
"\e[5C": forward-word
"\e[5D": backward-word
"\e\e[C": forward-word
"\e\e[D": backward-word
set completion-ignore-case On

All lines except the last enable nice readline & bash cursor movement (control + arrow keys and what not) while the last line turns on case insensitivity for tab-completion, enabling you to have folders and files of mixed case characters while not having to type the capital letters. (You can have a directory called “Documents” and tab-complete by tying “doc”

From: http://linuxart.com/log/archives/2005/10/13/super-useful-inputrc/