Comments on: What is a CD? http://christianpf.com/what-is-a-cd/ Christian Personal Finance - Financial help blog, debt help and other financial resources Tue, 14 Feb 2012 21:22:01 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ChrisCD http://christianpf.com/what-is-a-cd/comment-page-1/#comment-67 ChrisCD Thu, 19 Jul 2007 13:34:12 +0000 http://christianpf.com/what-is-a-cd/#comment-67 Yes, the market will change. Just no one knows when. Historically though, the Fed has not raised rates after pausing like this. Of course, they have never paused this long either. We do have some <a href="http://www.jumbocdinvestments.com/historicalcdrates.htm" rel="nofollow">Historical CD Rates</a> posted at our site. Keep in mind that if the rates move down, savings and money-market accounts will go down much faster than a CD will. If rates go up, most likely, the curve will invert again, because banks won't want to pay a "high premium" for the longer-term funds. They would rather wait out the storm and hope for rates to go back down soon enough. Yes, the market will change. Just no one knows when. Historically though, the Fed has not raised rates after pausing like this. Of course, they have never paused this long either.

We do have some Historical CD Rates posted at our site.

Keep in mind that if the rates move down, savings and money-market accounts will go down much faster than a CD will.

If rates go up, most likely, the curve will invert again, because banks won’t want to pay a “high premium” for the longer-term funds. They would rather wait out the storm and hope for rates to go back down soon enough.

]]> By: bob http://christianpf.com/what-is-a-cd/comment-page-1/#comment-64 bob Wed, 18 Jul 2007 17:29:04 +0000 http://christianpf.com/what-is-a-cd/#comment-64 @larry Oh, I agree you with you completely. I probably should have mentioned that in the post. With savings rates as good as they are you are talking about gaining maybe a few bucks for a pretty huge trade off of liquidity. The market will change of course, but for now even some of my longer term money is in high-yield savings accounts rather than CDs. @larry

Oh, I agree you with you completely. I probably should have mentioned that in the post. With savings rates as good as they are you are talking about gaining maybe a few bucks for a pretty huge trade off of liquidity. The market will change of course, but for now even some of my longer term money is in high-yield savings accounts rather than CDs.

]]> By: Larry http://christianpf.com/what-is-a-cd/comment-page-1/#comment-63 Larry Wed, 18 Jul 2007 17:12:00 +0000 http://christianpf.com/what-is-a-cd/#comment-63 Nice write up. Right now with on-line savings and money market account interest rates being so high, not sure if CDs are the best place to put your money. While they may offer a slightly higher interest rate, as you said they are not liquid. You could put the same money in an ING Direct or HSBC. They offer 4.5% - 5% interest savings accounts, and the money is fully liquid. You can have the money in your hands within 3 days. Personally, I have both an ING Direct savings, and a CapitalOne Money Market account where I keep my emergency money. The CapitalOne Money Market account is 4.75% interest and has full check writing privileges. This way if I need my money now I can get it. No penalties, fees, etc. When making the choice to use a CD, I think you really need to consider if you will need the money or not. Given the marginal difference in rate, if you even think you might need the money, just place it in a high interest savings account. Thanks Bob, nice write-up. Nice write up. Right now with on-line savings and money market account interest rates being so high, not sure if CDs are the best place to put your money. While they may offer a slightly higher interest rate, as you said they are not liquid. You could put the same money in an ING Direct or HSBC. They offer 4.5% – 5% interest savings accounts, and the money is fully liquid. You can have the money in your hands within 3 days. Personally, I have both an ING Direct savings, and a CapitalOne Money Market account where I keep my emergency money. The CapitalOne Money Market account is 4.75% interest and has full check writing privileges. This way if I need my money now I can get it. No penalties, fees, etc.

When making the choice to use a CD, I think you really need to consider if you will need the money or not. Given the marginal difference in rate, if you even think you might need the money, just place it in a high interest savings account.

Thanks Bob, nice write-up.

]]> By: Sunil Parmar http://christianpf.com/what-is-a-cd/comment-page-1/#comment-60 Sunil Parmar Wed, 18 Jul 2007 05:39:51 +0000 http://christianpf.com/what-is-a-cd/#comment-60 Hello there, Never heard about CD. But the concept is great. Will try it the day i'll be earning. I've answered your question about SEO. Do check it if you can find sometime. :) Thank you!!! Hello there,
Never heard about CD. But the concept is great. Will try it the day i’ll be earning.

I’ve answered your question about SEO. Do check it if you can find sometime. :)
Thank you!!!

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