CD Calculator to decide to sell/reinvest CD

[savory]

I purchased my CDs from Fidelity. It is my first time doing this vs a bank. I am now looking at selling some to invest in a higher return. I understand I will need to sell at a 'loss'.

Unfortunately, I did not find a calculator to know how to reinvest. I have found a calculator that includes bank penalties based on lost interest for X months. But, not one that suggests if I sell at X percent of the value, what does my new CD need to return. Do you know one that you would recommend?

You may also want to tell me that this exercise is a waist of time. My toe dip approach suggests that it might be since who would purchase a 3.5% CD unless it was a fire sale. If you tell me I am mostly wasting my time with this approach would be helpful (and not surprising) as well.

Thanks as always!

 

[pb4uski]

Assuming that you paid par/face value, I suggest that you make the penalty equal to the loss... so the months would be the [loss/(par * coupon)]*12

Example: $100,000 CD that has a 4% coupon and a $2,000 loss would be 6 months worth of interest.

 

[Kabowest]

I purchased my CDs from Fidelity. It is my first time doing this vs a bank. I am now looking at selling some to invest in a higher return. I understand I will need to sell at a 'loss'.

Unfortunately, I did not find a calculator to know how to reinvest. I have found a calculator that includes bank penalties based on lost interest for X months. But, not one that suggests if I sell at X percent of the value, what does my new CD need to return. Do you know one that you would recommend?

You may also want to tell me that this exercise is a waist of time. My toe dip approach suggests that it might be since who would purchase a 3.5% CD unless it was a fire sale. If you tell me I am mostly wasting my time with this approach would be helpful (and not surprising) as well.

Thanks as always!

You'd need to sell these at a discount on the secondary market at what someone is willing to pay.

I have a few CDs like this through Fidelity as well, but they mature in not too many months and I calculated that it was best to just let them mature.

Others here more knowledgeable than me may have better input

 

[Spock]

Divide the $ amount of the loss by the $/month it pays in interest = # of months penalty. Be aware that the "3rd party price" or "current value" that your broker shows for the CD isn't necessarily what you'll get for it.
CDs aren't traded frequently so the brokerage will have to solicit for offers for you. I've done 2x. Last time wasn't too bad as I think I got a touch over what the positions page said was my current value.