CD Rates-Here we go again!

[JOHNNIE36]

I new this was going to happen but didn't want to face it so soon. I have an IRA CD maturing 3-16-14. Got 10 days to act. The bank that is holding the CD now offered me 2.2% for five years with a penalty of 6 months interest if it's redeemed early. I've looked everywhere and can't find anything better. I don't plan to redeem it within the next 5 years and I don't see rates going higher in the next year so I think I'm going to leave it with that bank and take their offer.
Any thoughts?

 

[bUU]

Probably a good idea. You could do a 9 month CD at bupkis and then roll it into a PenFed January CD which will probably be over 3% by then, but who knows what'll happen between now and then, and who knows if PenFed will do their typical January bonus?