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School Me on CDs (Certificates of Deposit)

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School Me on CDs (Certificates of Deposit)

Old 05-08-08, 02:05 PM
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School Me on CDs (Certificates of Deposit)

I was researching a few CDs, and wondered if the time is right. The stock market is pretty volatile, but the rates are low. what's you opinion? Looking at Ing website, there is little difference between the 6 month and the 3 year, .30% APY to be exact. Is laddering CDs worth it, or just put all of the money wishing to save into one short term CD?

By laddering obviously, 1/3 of savings budget into 3 CDs

One 1 year CD
One 2 year CD
One 3 year CD

After first year matures, roll it into another 3 year CD, having a CD mature annually.

I have had a savings account for as long as I can remember and never having a very high interest yield. I feel as I am actually losing money with inflation rate versus the interest. I am semi diversely invested in stocks, none have done specifically well, have lost more then gained. How do you save?
Old 05-08-08, 02:31 PM
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IMHO the rates on CD's are too low. You would be better off in a high quality money market account that would give you liquidity and would move up if and when rates begin to move back up.

If you want a higher return with a little more risk look into a high quality Government Bond fund.

About the only time I would even use a CD is if I had a specific amount of money that I did not need for a specific period of time.
Old 05-08-08, 04:21 PM
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I have not done much research on Gov. Bonds and the like. There are so many options of bonds. I know a lot of these are State tax free and some federally I believe. Any which you would recommend?

Last edited by M2theAX; 05-09-08 at 08:01 AM.
Old 05-09-08, 08:29 AM
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[QUOTE=M2theAX]I have not done much research on Gov. Bonds and the like. There are so many options of bonds. I know a lot of these are State tax free and some federally I believe. Any which you would recommend?/QUOTE]

Well I really can't make a recommendation, since I know nothing about you or your situation.

Maybe start here


http://www.ici.org/funds/inv/bro_g2_bmfs.html

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