Is 3.4% a good Interest Rate on an 18 month CD?

[tireredsquare]

I opened a 6 month CD on 1 Nov at a rate of 3.4%. It matures on 1 May and the rate for the same CD now is 2.65%.

I can get a CD which will allow me to add $$$ to it and it has a rate of 3.4% for 18 months.

 

 

 

Is this a good deal? I assume it is.

[Circus]

Why not buy a stock with a dividend of 5% or better? Or an oil trust like PBT which is yielding around 7% right now?

[Nummerkins]

You can get a 4% CD from Alliant CU. www.alliantcreditunion.org

[54regcab]

You can get at least 3% w/o locking your money up, I wouldn't lock it up for 0.4%.

[tireredsquare]

I have money in 3 IRAs (soon to be 2), savings account, checking accounts, and this one CD. I will open more CDs but for now I need to rollover my current one.

 

I will stick the 3.4% 18th add too CD as I already have a $150 allotment going to that back every month. For the CD, I will add the interest I get off my checking and savings accounts plus whatever else I want to save from my main checking and savings.

[Kevin20]

I will stick the 3.4% 18th add too CD as I already have a $150 allotment going to that back every month. For the CD, I will add the interest I get off my checking and savings accounts plus whatever else I want to save from my main checking and savings.

 

 

Ah, you now get a better deal with US Savings Bonds i-series. Read link below.

 

The i-bonds rate is reset every 6 months based on reported inflation. If you buy one now you'll get 4.8% for the current period and (probably) 6+ % for the upcoming 6-month period. If you sell as soon as 18 months (ie, in less than 5 years), you forfeit 90 days worth of interest -- but probably still a good deal if you do the math.

 

see:

http://www.savings-bond-advisor.com/savings-bond-alert-032/

[54regcab]

If this is IRA money and you have more than 5 years until retirement why are you doing CD's at all?

[tireredsquare]

If this is IRA money and you have more than 5 years until retirement why are you doing CD's at all?

 

Between my .gov retirement (Thrift Savings plan) and my Fidelity (soon to be USAA) Roth IRA I have about $25k in retirement savings. All of it is invested. Once make more $$ I will diversify my stuff but right now I want ready available cash. Sure CDs aren’t exactly 100% accessible 24/7 that where my accounts come it.