CD Rates

[Diamond_Girls]

Does anyone have experience with Certificates of Deposit? I have a bit on money that has been sitting in a CD drawing a whopping 2.25% interest and has now come due. I can put it into a 13 mo CD for 4.3% or a 10 mo CD for 3.85%. One bank told me to take the least amount of time with the highest rate (so the 10 months is better than the 13 months). Does that make sense? It depends on whether rates will go up or down and of course this same person said that I'm looking at a 5+ interest rate in 10 months...

I appreciate any help! Thanks!

 

[Disneefun]

Why go with a CD again when some online banks are paying interest rates as high as 4% right now? I had a CD come due recently and took the money and put it in an online bank earning more interest than the 5 year CD at my bank was going to pay. The cash is now liquid and I won't have any penalites for withdrawing or adding to it. If interst rates go up, I get to take advantage of it immediately, rather than waiting to renew the CD. I'll probably move some of it to a mutual fund eventually, but I'm getting more interest right now than the CD would have paid and I can look around for a good fund, while continuing to add to my savings. Just something to think about.

 

[minnie1928]

go take a look at www.bankrate.com. It's a great site for deposits and loans.