Monday, October 27, 2008

Managing My CDs

I've been very lazy about my various CDs for the past couple of years. When they mature, I just let them automatically renew at the same term without making sure that's the highest rate. I always mean to be more proactive about it, but I always procrastinate. And as the saying goes, the only difference between proactive and procrastinate is that you have to move the c, substitute a v for an n, and...

Well, anyway, in these trying times, I'm attempting to be a little better about this! I just had my two-year E*Trade CD mature, and I managed to change it to a one-year term before the grace period was over. The one-year rate was the best deal right now, at 3.10% APY. Weirdly, you get that same rate for a 5-year CD:

Term Length
3 Month
6 Month
1 Year
15 Month
1.5 Year
2 Year
2.5 Year
3 Year
4 Year
5 Year

Is this the best rate I could have gotten right now? No. BostonGal just got a 4.25% rate at ING. This looks like one of the best 12-month CD rates available out there right now, according to Jonathan's comparison, unless you have $10,000 to invest. You can see more up to date CD rates here. I didn't feel like moving the E*Trade CD to another bank, but I may look at some of these other banks to open a new CD. I have some cash savings that have accumulated in my Chase savings account-- it's earning a pittance there, so I will probably transfer some of that money to a CD. I'd still have enough cash for an emergency in my FNBO savings account, which is earning 3.25% APY.

I wish these rates were all higher, but it's comforting to have some money that is safely and conservatively invested during all this craziness in our economy!


Anonymous said...

I'm a master procrastinator but I try mightily to keep up with my CD maturity dates. Because of my conservative tendencies, my entire IRA (not all that big -- about $15k) is in CD's. In addition, I have two custodial CDs -- one with each of my children.

You seem like a pretty organized person -- you should note your maturity dates on your calendar so you don't miss them.

I do some on-line banking and investing but I prefer to keep my CDs close to home in brick-and-mortar banks so I can take care of any changes I want to make in person. My kids are both earning 4.41% on 13-month CDs at WaMu/Chase that will mature next September. I can't remember what I'm earning on my IRAs right now but they are somewhere in the neighborhood of 4 - 4.5%.

Miss M said...

I'm an awful procrastinator too, I didn't do my taxes till April 14th even though I was due a refund. I don't currently have any CD's, the rates haven't been worth tying up my money. But it looks like the fed will lower rates again and I'm sure the high yield savings accounts won't be far behind, so I'm looking at that ING 12 mo one.

Anonymous said...

I recently opened a 1 year CD at ING at the 4.25% rate. I'm happy to hear that was a good deal. I bank at ING so didn't shop around because I didn't want to open a new account at another institution.

Until recently I was putting away my short term reserves to a money market fund. It's at Vanguard so I think it's still very safe, but I decided it wouldn't hurt to have more in FDIC insured accounts.

Anny said...

Thank you for reminding me to shop around for better rates. I keep mine at a b&m bank and the rates are horrid!

Anonymous said... is also a good place to go to compare CD rates.

Anonymous said...

i have a cd at BofA maturing in january. i think i'll just transfer it into my tax-exempt money market since the effective yield is so much better.