Any colleague perspectives on whether the 10 year Discover CD at 3.06APR makes sense to consider with it's 9 month simple interest early withdrawal penalty if rates were to rise versus say the much shorter Ally 5 year CD at the present 2.11 APR with only 60 day EWP or another potential low risk/resaonable yield alternative?
Note, several posts I have read in various forums have commented on the potential of some banks to block CD withdrawals or the bank disclosures being changed to increase the EWP mid-stream in a rising rate environment which is a potential risk but not sure how much.
As I continue though to look at the current stock and pricey bond environment, as a relatively risk-adverse investor I am finding it hard to dismiss the merits of the highest long-term CD I could find in today's low rate environment versus lower yields on the shorter 5 year term CDs or being only able to realize 1% or so in a high yield savings account. Thoughts?
Note, several posts I have read in various forums have commented on the potential of some banks to block CD withdrawals or the bank disclosures being changed to increase the EWP mid-stream in a rising rate environment which is a potential risk but not sure how much.
As I continue though to look at the current stock and pricey bond environment, as a relatively risk-adverse investor I am finding it hard to dismiss the merits of the highest long-term CD I could find in today's low rate environment versus lower yields on the shorter 5 year term CDs or being only able to realize 1% or so in a high yield savings account. Thoughts?