I have $2000 in my savings account? Should I put it into a cd?
Answer:
If you absolutely do not need the money for 6 months then I'd put it in a CD if the interest rate is better than your savings account's percentage. Definitely shop around for the best rate.
check out www.ingdirect.com
i think putting it into a cd will yield higher %
$2,000, that is all? I doubt I'd go through such trouble for weekend spending money.
video cd..lol .. :D for 2pts..
You can compare the CD rates at:
http://www.bankrate.com/brm/default.asp.
A good method is to try CD Ladddering:
With CD laddering, you buy a number of CDs for different terms. For example, if you have $10,000 to invest and need access to $2000 every year, you buy 5 $2000 CDs, with terms of one, two, three, four and five years. When your 1-year CD matures, you roll it over into a 5-year CD, and so on. This way, you get most of your money in higher-yielding CDs, but every year one CD matures, so you have access to part of your investment.
You can adjust the amount to your situation.
CDs don't stay up with inflation, especially small ones. Find a good mutual fund company with no-load funds and start a savings program. In six months, try to have saved up another two thousand which you are anticipating a need. With your short term cd, all you are doing is letting your bank loan your money to some other person, make money on your money, and give you a small amount of taxable income to report next year.
Put it into treasurydirect.gov (us savings bond). put it into the 3 months bonds and you get the best rate and dont pay state/local taxes. Plus backed by the US govt.
Also wait till the next fed meeting, which I think is next week.
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