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CDs: what to do?
Old 03-23-2005, 10:06 AM   #1
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CDs: what to do?

Is anyone holding off on buying CDs until the climbing rates seem to take a breather? I notice now my ING MM is paying 2.8% and the CDs are yielding 3.4%. About 2 months ago I bought a couple thousand worth of their CDs and am getting 2.75 on them Whats everyone doing in respect to CD rates?
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Re: CDs: what to do?
Old 03-23-2005, 10:18 AM   #2
 
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Re: CDs: what to do?

Dollar/Rate cost average into a ladder.
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Re: CDs: what to do?
Old 03-23-2005, 10:26 AM   #3
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Re: CDs: what to do?

I should have been more specific. I'm talking about only $5k in CDs. The ladder's a good idea but is it economical for small amounts like what I'm looking to do?
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Re: CDs: what to do?
Old 03-23-2005, 10:31 AM   #4
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Re: CDs: what to do?

Here is a very simple site that has good CD rate info, if you are interested. I check it every week or so just for kicks. It updates almost every day.

http://www.fisn.com/rates.htm
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Re: CDs: what to do?
Old 03-23-2005, 10:39 AM   #5
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Re: CDs: what to do?

If you are not interested in laddering (which makes sense for a small amount), I would just find the highest rate you can on a 5 year CD that has a penalty for early W/D of 6 months interest or less. If rates flop around, you leave it there. If rates spike, you pull the money and reinvest.
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Re: CDs: what to do?
Old 03-23-2005, 01:19 PM   #6
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Re: CDs: what to do?

Some places also offer intermediate term "jump up" certificates, like DCU. You buy (i think) a 15 or 27 month cert with a rate in the ~3-3.5% range, and once during the term of the cert you can jump the interest rate to current.

I think the 4-5 year with a six month forfeiture clause will still get you a better rate if you keep it for at least 3 years.

I'm buying ~1 year cd's right now and waiting. I suspect we'll see a happier rate a lot sooner than 2 years from now.
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Re: CDs: what to do?
Old 03-26-2005, 10:44 AM   #7
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Re: CDs: what to do?

Quote:
Here is a very simple site that has good CD rate info, if you are interested. I check it every week or so just for kicks. It updates almost every day.

http://www.fisn.com/rates.htm

Have you ever used them?

SWR
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Re: CDs: what to do?
Old 03-29-2005, 01:38 PM   #8
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Re: CDs: what to do?

Quote:
Dollar/Rate cost average into a ladder.
Like to learn more about this. Would you have a link handy or have time to offer an explanation? thanks
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Re: CDs: what to do?
Old 03-29-2005, 02:45 PM   #9
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Re: CDs: what to do?

I don't have CD's and am not retired, but for my shorter term investments I've purchased I-bonds in smaller amounts but have other money in money market accounts and am holding off on longer term fixed rate investments til things settle down a bit. I've found some local banks that are paying a bit over 3% for money markets.
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Re: CDs: what to do?
Old 03-30-2005, 08:34 AM   #10
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Re: CDs: what to do?

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[www.fisn.com]

Have you ever used them?

SWR
I personally have not used them, but know someone that has, and they are pleased with them. They have several links on their page to 'verify' their company's history, so they are definitely a legit company...and the rates they offer (FDIC-insured CDs) are fairly good, although keep a careful watch on the terms of the callable/step-up CDs.
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Re: CDs: what to do?
Old 03-30-2005, 08:57 AM   #11
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Re: CDs: what to do?

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Have you ever used them?

SWR
I use them all the time, but just to check rates...never bought from them (to be honest I didn't even know you could) I just like the quick and dirty list of the best performing CD rates in the country all on one page.
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