2B said:You can almost always get better rates on FDIC insured CDs. If you spread it around you can easily cover a few hundred thousand with the insurance and still get a nominal 1/2% over 5 yr Treasuries.
Yeah, except the Treasury interest is state tax exempt, which I figure just about
buys me that 1/2% in my state where marginal state tax is 7%:
Treasury yield 5% * (1-0.25) = 3.75%
CD yield 5.5% * (1-0.25-0.07) = 3.74%