Interested in hearing comments on this. I've had CD's all my adult life (besides other investments so hold your comments) and have never paid a penalty to reinvest one in a higher rate. Just luck I guess and most have been 12 month accounts.
Currently I have 6 CD's ($100k+) in various banks and S&L's, but with the current interest rate increases these days, I'm sure I'll be paying these penalties to reinvest them at a higher rate in the coming months. Using the online CD Penalty Calculator most of us already use, I already have one that rolled over 2 months ago that will pay for itself if I do reinvest for another 12 months.
Although each of my banks have different penalty amounts which range from 2 months to 6 months of interest, I can foresee most of my CD's falling into this situation of paying penalties maybe more than once in the coming months.
I guess my question is, is it unheard of to pay these penalties maybe more than once during a 12 month CD period as long as it makes financial sense? With the projected increases it seems to make sense assuming I have no need to withdraw any of this cash. I'm guessing many of us will be in this same situation in the coming months.
Has anyone ever heard of banks limiting how many times you can do this? I know it's a nice situation to be in finally.
Currently I have 6 CD's ($100k+) in various banks and S&L's, but with the current interest rate increases these days, I'm sure I'll be paying these penalties to reinvest them at a higher rate in the coming months. Using the online CD Penalty Calculator most of us already use, I already have one that rolled over 2 months ago that will pay for itself if I do reinvest for another 12 months.
Although each of my banks have different penalty amounts which range from 2 months to 6 months of interest, I can foresee most of my CD's falling into this situation of paying penalties maybe more than once in the coming months.
I guess my question is, is it unheard of to pay these penalties maybe more than once during a 12 month CD period as long as it makes financial sense? With the projected increases it seems to make sense assuming I have no need to withdraw any of this cash. I'm guessing many of us will be in this same situation in the coming months.
Has anyone ever heard of banks limiting how many times you can do this? I know it's a nice situation to be in finally.