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Old 02-22-2017, 06:49 PM
 
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I looked at bankrate and Capital One has a 2 percent 5 year CD. The early withdrawal penalty is 6 months of interest. I wonder if it makes sense to get that now.

Interest rates are supposed to start rising, slowly.
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Old 02-23-2017, 01:49 AM
 
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the projection is rates will be at 2% 5 years from now so that is how long it may take to get to that level so 2% starting today is a better deal than waiting
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Old 02-23-2017, 04:50 AM
 
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Quote:
Originally Posted by mathjak107 View Post
the projection is rates will be at 2% 5 years from now so that is how long it may take to get to that level so 2% starting today is a better deal than waiting
Ok, thanks.

Right now I have a TFCU 5 year $110k CD at 1.9 percent.

I have 3 savings or money market accounts, each over $100k, at under one percent.

I have a TIAA traditional account, over $100k, at 3 percent. This one can be converted to a lifetime income of about 6.2 percent.

So if I can increase the interest on the $300k in low interest accounts, I could get about $3,000 more a year.


No one can really predict what the fed will do. The increase will probably be slow. But who knows.

If interest suddenly increases dramatically, I would just have to pay the penalty. That would be about $1,000 on a $100k CD.
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Old 02-23-2017, 09:34 AM
 
Location: Charleston, SC
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My Crystal Ball is nowhere near clear enough to see where Rates will be in 2022. For my own use, I have a shorter term CD Ladder and will adjust to longer CD's when the time comes. I think rather than tying up money for 5 years, I'm willing to take a fraction less Interest and be nimble about renewals. On a $10K CD....0.5% is only $50 bucks.
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Old 02-23-2017, 10:05 AM
 
Location: Sylmar, a part of Los Angeles
3,978 posts, read 2,537,158 times
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Please use descriptive titles so we don't waste time clicking on topics we don't care about.
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Old 02-23-2017, 10:24 AM
 
4,312 posts, read 1,281,751 times
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Originally Posted by V8 Vega View Post
Please use descriptive titles so we don't waste time clicking on topics we don't care about.
I guess you didn't get the pun. I tried making the title "Interest," but that title was taken, so I added "ing."
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Old 02-24-2017, 09:22 PM
Status: "I am Blessed." (set 4 days ago)
 
Location: Spurs country. "Go, Spurs, Go!"
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I agree with V8 Vega. Adding "ing" completely changed the meaning. "Interest" by itself kind of speaks for itself and would attract those who wanted financial information. I don't fall under that heading.
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