Certificate of Deposits (CD)

[JanetRose]

My daughter wants to open a CD with $2000. For a 12- month CD, the rates I've found are from .50% to 1%.

I remember a time when they were earning 15%!!

 

[golfgal]

Sure but mortgage rates were 18% then too

Honestly, open an ING savings account for about the same rate or maybe even a little better.

 

[DebbieB]

Shop around. One bank in my area (Dollar Bank) has a savings account with 2%. I have a CD coming up in a couple of weeks, I'm going to move the money there.

 

[tvguy]

A coworker just bought a house and got a 4.3% 30 year fixed mortgage.
We were excited that mortgage rates had plunged from 16 % to 12.1/4 percent when we bought our house in 1983!!!!

 

[bicker]

Geez... 4.3%. I think I'm paying 5.5%... maybe its time to refinance? Probably not worth it though, given points and fees and such eh?

 

[Christine]

Geez... 4.3%. I think I'm paying 5.5%... maybe its time to refinance? Probably not worth it though, given points and fees and such eh?

I've been thinking about that too. My current rate is 5.13%. Someone I ran into just got a rate of 4.4% with no points and closing. Don't know what other other fees might be. It's almost not enough change in rate for me to even think about but then I think maybe I should.

 

[bicker]

Yeah, I know what you mean. Time - even leisure time - is money.

 

[golfgal]

Geez... 4.3%. I think I'm paying 5.5%... maybe its time to refinance? Probably not worth it though, given points and fees and such eh?

15 year mortgages are in the 3.8% range. Any time you can drop a percentage point and are going to stay in your home longer than 5 years it almost always makes sense to refinance.

 

[Micca]

I stuff any extra money under my mattress. Every two years I gather the loose change from the sofa cushions and it comes out about the same as interest from a cd. I'm not a member of FDIC, but there's no penalty for early withdrawal.

 

[stichy]

Check Ally bank. DH is a financial analyst and he is always shopping around for better rates. We don't even bother banking with the bank he works for. I'm not quite as old as some of you but I remember when a 5 year cd was at 8.5%.

 

[bicker]

15 year mortgages are in the 3.8% range. Any time you can drop a percentage point and are going to stay in your home longer than 5 years it almost always makes sense to refinance.

Still, that would increase our payment $200 per month, and we'd have to pay $4000 in "Estimated Prepaid Finance Charges" (whatever that means), while only reducing our term from 23 years down to 15 years. That $4000 is a hard nut to swallow!

 

[BunsenH]

Just today, I opened a 2 year CD at a local credit union. 1.75% Not great, but the best around and comparable to on line rates. Transferred the $ from a savings account paying 1.1%.

I wish that savings interest rates would climb some.