I had a CD mature. I called local banks to get the current rates they offered. Of course, none were any too great. One bank suggested that a temporary solution would be to start a Christmas Club account. Starting in Oct, you agree to make weekly or monthly deposits into the account for a stated amount. If all deposits are made timely for 49 weeks, the bank will deposit the same amount as a 50th deposit.
In the meantime, I could retain the balance of the matured CD in a savings account. Yes it will be getting trivial interest, but still a little bit. So in effect, getting a little interest on a declining savings balance all year long, then the 50th payment made by the bank.
The bank allows weekly deposits anywhere from $2 to $1,000. Does this sound like a temporary interest "fix", or am I missing something? The other choice is a pitiful CD rate short-term, or locking up my CD proceeds into a 5 year CD (and even that rate isn't too good!) Your thoughts??
This is money I'm NOT needing access to in the short-term, but would prefer to keep somewhat liquid.
In the meantime, I could retain the balance of the matured CD in a savings account. Yes it will be getting trivial interest, but still a little bit. So in effect, getting a little interest on a declining savings balance all year long, then the 50th payment made by the bank.
The bank allows weekly deposits anywhere from $2 to $1,000. Does this sound like a temporary interest "fix", or am I missing something? The other choice is a pitiful CD rate short-term, or locking up my CD proceeds into a 5 year CD (and even that rate isn't too good!) Your thoughts??
This is money I'm NOT needing access to in the short-term, but would prefer to keep somewhat liquid.
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