Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Everbank cds and low current cd rates
Old 04-05-2008, 02:02 PM   #1
Dryer sheet wannabe
 
Join Date: Apr 2007
Posts: 17
Everbank cds and low current cd rates

Is anyone buying Everbank cds like the euro, world energy cd, Austrailian dollar cd etc.? With cd interest rates so low do you think it is worth the risk?
__________________

__________________
DMS is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-05-2008, 02:32 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
No.
__________________

__________________
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.
cute fuzzy bunny is offline   Reply With Quote
dollar bull cd
Old 04-05-2008, 02:42 PM   #3
Dryer sheet wannabe
 
Join Date: Apr 2007
Posts: 17
dollar bull cd

Since you said "no" do you think the dollar is going to appreciate? If so, would you buy a dollar bull cd?
__________________
DMS is offline   Reply With Quote
Old 04-05-2008, 02:48 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Nope.

I bought my cd's at 6.25% the year before last. I wouldnt buy anything at todays rates, I wouldnt commit to taking on a huge risk on currencies, either foreign or domestic.

Taking on risk by reaching for oddball yields isnt very smart IMO. You can get better returns elsewhere with the same or less risk.

Hell, I'd think you'd have better returns and less risk with ISM/OSM. But thats looking a little poor in terms of risk/reward to me as well.

I'd put my cash into a crappy MM account, wait for the good rates from federally insured bank products, and then buy them.
__________________
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.
cute fuzzy bunny is offline   Reply With Quote
Old 04-05-2008, 03:34 PM   #5
Recycles dryer sheets
barbarus's Avatar
 
Join Date: Aug 2007
Posts: 433
Quote:
Originally Posted by cute fuzzy bunny View Post
I'd put my cash into a crappy MM account, wait for the good rates from federally insured bank products, and then buy them.
The Bunny is right-on about foreign account risks.

Let me elaborate on the return of good FDIC rates however.

It's gonna be a LONG, LONG time.

We prudent savers have the privilege of partly funding the bailout of wealthy financiers by lending our money at ever declining rates.
Thank the government for both of us would you?
__________________
Consult with only myself as your adviser or representative. My thoughts should be construed as investment advice of the highest caliber. Past performance is but a pale shadow and guarantee of even greater results in the future.
barbarus is offline   Reply With Quote
Old 04-05-2008, 03:35 PM   #6
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
I'm not buying them, but I do own one.

I bought a bunch of Euro in 2002, and have been rolling over CDs every 3 months since.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 04-05-2008, 04:23 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Oct 2005
Posts: 4,898
A couple of questions.

With the Euro so high against the dollar, buying CDs based in the Euro wouldn't be a very good deal right now would it?

Aren't there some fees banks charge to do this for you?
__________________
Zoocat is offline   Reply With Quote
Old 04-05-2008, 04:29 PM   #8
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Agreed that the timing isn't ideal now. Re fees, Everbank is inexpensive in that regard compared to most retail banks - they have an active retail foreign currency business and try to get customers nationally. If I remember they charge 75 basis points over spot with no commissions.


In my case, was re-patriating and had a bunch of Euro. Anticipating that the Euro was at a high point vis the dollar, I didn't want to convert them back to USD. I did some research as to where I could hold Euros in the US and Everbank was the best option available at the time (2002).


I later bought some Yen too. I've held them for over 5 years.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 04-05-2008, 04:31 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
So what you're saying is that you had a yen for...

nah...never mind...
__________________
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.
cute fuzzy bunny is offline   Reply With Quote
Old 04-05-2008, 05:40 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
there's a saying that there is only one thing more difficult to successfully predict than interest rates, and that's foreign exchange. i wouldn't want to be trying to do both.
__________________

__________________
d is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Where to find current TIPS rates? Gearhead Jim FIRE and Money 9 01-30-2008 12:58 PM
Looking for low permanent CC transfer rates BigMoneyJim FIRE and Money 8 09-24-2006 03:08 AM
Where to find current TIPS rates? Gearhead Jim FIRE and Money 15 09-22-2006 03:26 PM
Low interest rates Whisper9999 FIRE and Money 29 12-01-2004 06:03 AM
CD Rates are REALLY LOW! ShokWaveRider FIRE and Money 31 08-23-2003 03:00 PM

 

 
All times are GMT -6. The time now is 11:14 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.