Please Scroll Down to See Forums Below My company has some excess capital in it. I am looking for better interest rates for it. I just called my local bank and they have a 2 year cd paying 2.65%. I have never bought cd before because of the length of time you have to leave them in. I guess I am concerned that rates may go up and I will stuck at those. But in this market the rate sounds pretty good right now. What do you money people think?
A Money Question about a 2 year CD
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coverguy
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Definitely check around. Rates are rising, and 6 months from now you're going to feel like an ass with that rate. If you're comfortable going 2-3 years out you can definitely get better rates. Look in to some step-ups. If you'd rather have access to your money look into Money Market accounts. ING does offer a decent one.
Did`nt the fed raise rates today? If you don`t want to risk all the money being tied up, try laddering the CD`s. Let`s say you have 25k, put 5k into a 6 month CD another 5k into a One year CD and so on. You`ll end up with an average of about the same or slightly lower than the highest term BUT you will have $5000+ money ciming to maturity every six months and you can either take the money or REinvest it into the CD.
If it`s a whole lot of moeny, I would look into other stuff though. CD`s won`t beat inflation.
If it`s a whole lot of moeny, I would look into other stuff though. CD`s won`t beat inflation.
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