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03-23-2005, 09:06 AM
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#1
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Recycles dryer sheets
Join Date: Sep 2004
Posts: 174
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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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03-23-2005, 09:18 AM
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#2
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Re: CDs: what to do?
Dollar/Rate cost average into a ladder.
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03-23-2005, 09:26 AM
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#3
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Recycles dryer sheets
Join Date: Sep 2004
Posts: 174
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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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03-23-2005, 09:31 AM
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#4
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Full time employment: Posting here.
Join Date: Jan 2004
Posts: 851
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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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03-23-2005, 09:39 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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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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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-23-2005, 12:19 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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03-26-2005, 09:44 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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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
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Have you ever used them?
SWR
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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03-29-2005, 12:38 PM
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#8
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Recycles dryer sheets
Join Date: Mar 2005
Posts: 90
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Re: CDs: what to do?
Quote:
Dollar/Rate cost average into a ladder.
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Like to learn more about this. Would you have a link handy or have time to offer an explanation? thanks
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1.Convert Euro assets to US$ now or not?<br />2.Tax haven work, anyone ventured?<br />3.ER income from Real-Estate or Equities?<br />4.ER to Canada or US?<br />5.Lifesavings secure in Funds after Worldcon/Enrot/Equitable Life?<br />6.House price correction risk as rates go up?<br />7.Prop arbitrage i.e. CA > 20% IL<8%?
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03-29-2005, 01:45 PM
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#9
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Recycles dryer sheets
Join Date: Feb 2004
Posts: 123
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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.
__________________
"He who speaks of dryer sheets has not seen the clothes line." Al B. Tross
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03-30-2005, 07:34 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
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Re: CDs: what to do?
Quote:
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.
__________________
Dryer sheets Schmyer sheets
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03-30-2005, 07:57 AM
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#11
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Full time employment: Posting here.
Join Date: Jan 2004
Posts: 851
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Re: CDs: what to do?
Quote:
Have you ever used them?
SWR
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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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