CDs over the next 3 to 5 years

[MJ]

Hi,

I have a IRA zero coupon maturing next week. I still haven't done my homework for future investing in either index or retirement 2xxx funds so I am thinking of putting the 59k in CDs.
I found a local CU offering IRA CDs @
4.24% APY for 3 years
4.71% APY for 5 years

It appears the if I take the 3 year CD and I would have to get at least 6.10% for year 4 and 5 to equal the interest of the 5 year CD.

Can anyone comment on which is preferable over the next 3 to 5 years. The rates don't appear to be moving much these days.

Thanks in advance

MJ

[Berkshire_Bull]

it looks to me that the interest rate over the last 10 years has been approximatelly 8%. we're well below that now, so seeing a return to somewhere in that neighborhood wouldn't sound unreasonable. i think energy will put pressures on prices and that inflation will tick up putting pressure on interest rates. those rates look good though, bankrate's cd rates don't come close to those. i would go for the 3 year to play it safe.