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Old 10-01-2008, 05:53 AM   #1
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CD Investing

check this out
Bank CD, High-Yield Savings Account - MoneyAisle
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Old 10-01-2008, 05:57 AM   #2
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Someone started a thread discussing this a couple of days ago: http://www.early-retirement.org/foru...ney-39171.html
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Old 10-01-2008, 06:02 AM   #3
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Thanks I was looking for input I must have missed that post ?
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Old 10-01-2008, 06:55 PM   #4
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I found this the other day but the 'test drive' feature crashes when it starts to load. They promoted it on CNBC yesterday. I tried the test drive again today and its still crashing. Anybody get this feature to work?
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Old 10-01-2008, 08:59 PM   #5
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Hmm, if they cant make their web site work effectively after getting publicized to the perfect national audience, I'd be a little concerned about sending them money.
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Old 10-01-2008, 09:12 PM   #6
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I ran the test drive and it was about the same result as bankrate.com
WaMu (now Chase) has a killer 5% CD that beats all these offers.
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Old 10-01-2008, 09:22 PM   #7
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I hear penfed has 5% 3,4,5, and 7 year cd's right now...

Might be a good time to start a little ladder.
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Old 10-01-2008, 09:45 PM   #8
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Originally Posted by cute fuzzy bunny View Post
I hear penfed has 5% 3,4,5, and 7 year cd's right now...

Might be a good time to start a little ladder.
I'm not sure about that. I suspect that in a couple of years you might be able to pick up one of those nice 15.75% CDs like I had back in the early 80s.

Of course back then I was paying 13.5% on my mortgage.
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Old 10-01-2008, 09:56 PM   #9
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I'd have no trouble taking the minute loss of interest involved in cashing in those 5% cd's for some 15.75% ones. Maybe even the 15.5% versions.

If I didnt have a cd ladder (and I wanted one), I think I'd at least load up on the 3 and 4 year versions for now. You can always change your mind later if something considerably better comes along.

As a side hint, penfed usually offers these sorts of sudden deals when they're about to do something on the other end of the balance sheet like offer a good rate on helocs or mortgages. They need to bring in some deposits first. You know, the old fashioned way?
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Old 10-02-2008, 06:18 AM   #10
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Originally Posted by cute fuzzy bunny View Post
If I didnt have a cd ladder (and I wanted one), I think I'd at least load up on the 3 and 4 year versions for now. You can always change your mind later if something considerably better comes along.
In a brokered CD you have to sell on the secondary market. Cashing in isn't apparently an option. I've picked up some very distressed priced CDs where I got up to an extra 1% on comparable "new" CDs.

I like CDs for my fixed income because of the FDIC insurance. I also keep things short in the current market. I don't have anything over 2 years. Nominal one year CDs seem to be available now at 3.8 to 4%. Brokered CDs don't get to take advantage of special deals banks run to attract retail customers. They know brokered CD buyers will leave for the best rate when their CD matures. Retail customers tend to stay around and renew them at lower rates.

Speaking of risk and reward, one of my closed end preferred funds has temporarily (I hope) suspended their dividend. They indicate that they should be resuming it "shortly" and pay the one skipped / delayed. All of them have fallen significantly and sell for 20 to 30% discount to NAV but until now the dividends have kept on coming without any major shifts.
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Old 10-02-2008, 07:24 AM   #11
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I buy long term FDIC CD's and it has worked out fine (I was sorry to see my 8% Capital One CD mature a couple of years ago (10 year term ended)). Currently have 6% and 6.25% out to as much as 2014. Nice to see my LOWEST CD is currently paying 5% now. Of course APY 5.4% is currently available at Capital One (for me it is the right term, 7 and 10 years). Nice thing about Capital One is CD's redeemed early are subjected to a 6 month interest penalty even on the long term ones; while PENFED charges 1 year on longer term CD's. Kind of a mute point as I have not redeemed any early yet.
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