brewer12345 said:Depends. How likely are you to need it in the next few years? What's you tolerance for possible losses over that time period?
JRB said:It looks like I can get a 1 year 3.7% CD at Charles Schwab. That might be the way to go.
JRB said:It looks like I can get a 1 year 3.7% CD at Charles Schwab. That might be the way to go.
Spanky said:ETrade offers 2.65% (money mkt) and gives you a $200 cash bonus - $125 for opening an account and $75 for direct deposit.
JRB said:It looks like I can get a 1 year 3.7% CD at Charles Schwab. That might be the way to go.
brewer12345 said:That's not terrible. You could do bettter, but it might not be worth the aggravation.
Its a dirty little secret in the industry, but you have to be careful buying CDs at brokerages because the bank setting the rates often just sticks a lousy rate out there because they know they might be the only ones offering a CD for a given maturity that week. Since there is no competition in that maturity bucket, they can offer below-market rates and still attract some money from people asleep at the switch.
TromboneAl said:The tax exempt money market at Vanguard currently yields 2.64% and has an expense ratio of only .13%. In the 15% tax bracket, that's equivalent to 3.11%.
You'd effectively make $1,395 in interest in one year, compared with $1665 with a 3.7% CD, but you'd have immediate access to your money.
P.S. Correctness of above calculations not guaranteed (or likely).
BUM said:It is surprising how many depositers jump into a 90 day 4% CD and leave it there...