Originally Posted by Sunset
You can get 2% cd at Ally for a 5 yr term and it's FDIC insured.
Should rates rise quickly, it can be cashed with a 6 month interest penalty.
Which makes the rate if you cash it:
ALLY 5 YR
Term (months) 60 mo APY2.00% Penalty (months) 6 mo
1 Year 1.01%
2 Years 1.52%
3 Years 1.68%
4 Years 1.77%
5 Years 2.00%
I basically "moved" half of my bond allocation to an ally CD ladder for similar reasons. I'm not a fan of municipal or corporate bond funds and federal bonds pay so little. I don't like buying individual bonds and even with the super low expense rations bond etfs are so low on the return side it just doesn't make sense to me.
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