|
08-14-2015, 09:35 AM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Feb 2009
Location: Cville
Posts: 1,604
|
Navy FCU 3YR or 5 YR ?
Part of my funding for my initial RE years is a CD ladder. Mostly have been with PENFED, but on a tip from this board, I opened a 12 month 3% with Navy FCU. So time to open a new CD and also time to renew one just matured. Penfed is low, 5 year CD is 1.5% and Navy has 1.95% for 5 year.
My ladder is made up of all 5 year CDs but looking at Navy, I can get 3 year at 1.5% so I'm thinking that if I go with 3 year, I can renew at a higher rate, if rates rise in next year or 2.
Summary:
1 year .85%
2 year 1.25%
3 year 1.5%
5 year 1.95%
Don't need $$ for 6 or 7 years
Which is your choice ?
|
|
|
|
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!
|
08-14-2015, 10:27 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,242
|
If you need the money in 6 years or so, I would go with the 3 year and renew at 3....
The other question is how much are you investing... if it is small... then 45 bp is not a lot of money.... but if it is a chunk of change it really is...
Then, the 5 year might be better and live with the early penalty after 3 if you want out.... BTW, what would the rate be on a 5 if you took it out after 3 Might be better than the straight 3.... I did not do the math....
|
|
|
08-14-2015, 10:43 AM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Feb 2009
Location: Cville
Posts: 1,604
|
Thanks Texas - I hadn't thought of option to break out early if rates go up. I'm doing $5-6K CDs, new one every 6 months. Hrmmm just did quick table in excel, looks like difference is little more than $100 after 5 years, so think I'll stick with the 3 yr and hope rates go up so renewal will be like 12%
|
|
|
08-14-2015, 12:46 PM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,674
|
I'm going to be looking for a replacement for my NFCU 12 month CD that I started last September. Remember that 5% CD? That's going to be impossible to replace but it's only $5K.
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
|
|
|
08-14-2015, 01:02 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,242
|
Just did a quick calc.... say you go three years... and I am doing simple interest here.... invest $1K....
If you invest at 3 years you get $45...
If you invest at 5 year and break at 3 year with 6 month penalty you get $48.75... without penalty you are at $58.50....
I would go the 5 and break if the rates go up enough to matter....
|
|
|
08-14-2015, 01:05 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,373
|
+1 go with 1.95% and break it if you decide to.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
08-14-2015, 02:29 PM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,413
|
Per www.depositaccounts.com, Capital One 360 is offering 5 year CD's at 2.25 percent with no minimum. I would take that over NFCU's 1.95 percent.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|