CD rates
- Thread starter SPOKES
- Start date
There are probably sharper knves in the draweer than me, but I would probably wait a few months and see how things look before locking up things for five years or longer in CD's. ING is offering 4.4% for five years and 4.0 for four year right now.
I-bonds are actually paying 3.39 considering both the interest and inflation factors. I'm figuring that even with the 3 month penalty after the 12 months minimum investment time they are a great short term place to have some money. I guess the inflation portion could adjust either way over the longer term, but you don't have to hold them for the full 5 year maturity if you're willing to factor in the early cash-in penalty. Plus the tax deferal benefits. Considering the maximum investment limits, I think they are a good place to have some returns that compete with 2 or 3 year CD's.
Roger_R is correct in pointing out that the current
I-Bond rate is 3.39%. That figure is based on a
semi-annual inflation rate of 1.19%. The May
CPI annualized rate was 3.1%, so we could
expect to see a higher I-bond rate than 3.9%
after Nov 1 when the rates are adjusted. I don't
think it is very likely that the inflation rate is going
down soon, but what do I know?
Cheers,
Charlie
I-Bond rate is 3.39%. That figure is based on a
semi-annual inflation rate of 1.19%. The May
CPI annualized rate was 3.1%, so we could
expect to see a higher I-bond rate than 3.9%
after Nov 1 when the rates are adjusted. I don't
think it is very likely that the inflation rate is going
down soon, but what do I know?
Cheers,
Charlie
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