I have both brokered Cd's and Bank Cd's. Agree, I prefer bank Cd's.
However, with Cd's interest rates so low, I have no problem purchasing
Broker CDs.
Key, is PLAN ON HOLDING TO MATURITY. original post said they could
hold to maturity. So Broker CD is fine for OP.
Also, agree, if interest rates rise to 5%, a Broker CD will drop in value.
Only problem is, if we all knew rates would rise to 5%, we would not buy
a 3% broker CD. (no one really knows when rates will rise).
While one waits for rates to rise, one is losing interest income. Again,
no one has been able to predict when rates will rise, and if and when they
do, will it be in small increments?
Never thought, I'd be happy getting 3% on my CD's, but I've joined the
CD laddering crowd.
However, with Cd's interest rates so low, I have no problem purchasing
Broker CDs.
Key, is PLAN ON HOLDING TO MATURITY. original post said they could
hold to maturity. So Broker CD is fine for OP.
Also, agree, if interest rates rise to 5%, a Broker CD will drop in value.
Only problem is, if we all knew rates would rise to 5%, we would not buy
a 3% broker CD. (no one really knows when rates will rise).
While one waits for rates to rise, one is losing interest income. Again,
no one has been able to predict when rates will rise, and if and when they
do, will it be in small increments?
Never thought, I'd be happy getting 3% on my CD's, but I've joined the
CD laddering crowd.