CD Rate

[sparked1]

People still buy CDs as investments? So many better financial instruments nowadays. A high yield savings or money market from Citi offers 2.43% right now and doesn’t come with the restrictions of a CD. If you don’t have a Roth, open one (or two if you’re married). You can deposit two tax years worth of funds ($11,500 for 2018/2019 combined) plus the same for your spouse. Then invest it in ultra-low cost income funds from Vanguard. That will yield you 3-3.5% without much risk. Plus the gains are tax free to boot, and your contributions are always accessible penalty-free.

 

[ARCman47]

CD rates are terrible compared to the good old days. I remember getting 8-9% . I have one at 2.50 I believe, but it's a 5 year.

Lemme hold a hunnit so I can see lil further

 

[letusbuyyourcar]

Edward Jones 2.45% one year CD or money market account

Well that's better than I was expecting. Last time I was in a bank paying attention it seemed like the CD rates were some fraction of a percent.

 

[Treehawk]

Well that's better than I was expecting. Last time I was in a bank paying attention it seemed like the CD rates were some fraction of a percent.

They are at most big box banks.

 

[letusbuyyourcar]

They are at most big box banks.

That's probably the worst investment I can think of. You let the bank lock your money down for what 12 to 36 months for half a percent or 1 percent?

 

[DinkyDau]

Thanks for your suggestions and input! I can't tie funds up for a long time, or I would go another route.

 

[Gunanddoglover]

That's probably the worst investment I can think of. You let the bank lock your money down for what 12 to 36 months for half a percent or 1 percent?

And for the privilege of letting a big bank hold YOUR money you may get a whopping 1% with conditions and penalties, while the big bank will use your money and get a much higher return for their bottom line.

 

[elmosdad]

I've got a Money Market that's paying 2.5% and accessible any time..

Also got an annuity paying 5.2 % for 5 years term....

 

[letusbuyyourcar]

And for the privilege of letting a big bank hold YOUR money you may get a whopping 1% with conditions and penalties, while the big bank will use your money and get a much higher return for their bottom line.

Sounds a lot like Federal Income Tax. Here use my money all year long for FREE. Then let me have a little of it back in February so I feel like a winner when I'm really a sucker.
But no I have never and would never buy any banks CD. Better off buyin $400.00 ARs or silver, or pretty much anything of value. I'd rather scrap junk cars than tie up a chunk off cash for that long.

 

[MrJim]

Banks seem to be a rip-off. Ive got a money market account that I’ve made less than $3 in 7 months on $7500. Gonna move it soon.