rates
As the first CD is coming due in June, was wondering about a comment that I read.
Instead of going with the 1yr @ 1.0%, go with the 5yr @ 1.74% and forfeit the 60day penalty interest if we need to withdraw for investing in other high yield funds...
Does this make sense ?
Actually, given today's rates, only 2 of Ally's CDs are ever optimal. The rest should all be ignored. If you think you might withdraw your money within 130 days, you should go with the no-penalty (11 month) CD. Otherwise, you should go with the 5-year CD. After 130 days, the additional interest will more than cancel out any early withdrawal penalty.
I drafted a spreadsheet that dem> Currently have a couple of CD's with Ally bank
in a
Tnx for the reply and posting. The CD's are just a way to keep my hands off, and not add to my various stock & mutual fund holdings, along with providing a parking place for cash... It's about $100k -
I had not actually sat and played with the numbers to see if the 5yr made sense - even with a withdrawl to potentially place the funds into a higher return account if and when that might happen.
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