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UCGal
Participant[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]
That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.
You’re only screwed out of 6 months of interest.
This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.
Participant[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]
That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.
You’re only screwed out of 6 months of interest.
This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.
Participant[quote=flu][
54 months is an awfully long time for a 2.65% rate imho.[/quote]
I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.
As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.
Participant[quote=flu][
54 months is an awfully long time for a 2.65% rate imho.[/quote]
I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.
As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.
Participant[quote=flu][
54 months is an awfully long time for a 2.65% rate imho.[/quote]
I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.
As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.
Participant[quote=flu][
54 months is an awfully long time for a 2.65% rate imho.[/quote]
I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.
As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.
Participant[quote=flu][
54 months is an awfully long time for a 2.65% rate imho.[/quote]
I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.
As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.
ParticipantI rolled a cd last week. From a 4.5% one (that expired darn it) to a 2+ percent one.
I signed up for the 60 month non-promotion rate – after asking about what I’d lose for early withdrawal. I do not *plan* on needing the money in the near term – this is my emergency fund (you know, in case I get laid off, etc.) If I need to cash it out and it’s been less than a year, I forfeit 90 days of interest. If I need to cash it out and it’s been more than a year – I forfeit 180 days of interest.
I just checked the website
http://www.sdccu.com/pages/rates/DepositRates.pdf
The rates are pretty much the same as last week…
The cd rates are on the 2nd page of the pdf.ParticipantI rolled a cd last week. From a 4.5% one (that expired darn it) to a 2+ percent one.
I signed up for the 60 month non-promotion rate – after asking about what I’d lose for early withdrawal. I do not *plan* on needing the money in the near term – this is my emergency fund (you know, in case I get laid off, etc.) If I need to cash it out and it’s been less than a year, I forfeit 90 days of interest. If I need to cash it out and it’s been more than a year – I forfeit 180 days of interest.
I just checked the website
http://www.sdccu.com/pages/rates/DepositRates.pdf
The rates are pretty much the same as last week…
The cd rates are on the 2nd page of the pdf.ParticipantI rolled a cd last week. From a 4.5% one (that expired darn it) to a 2+ percent one.
I signed up for the 60 month non-promotion rate – after asking about what I’d lose for early withdrawal. I do not *plan* on needing the money in the near term – this is my emergency fund (you know, in case I get laid off, etc.) If I need to cash it out and it’s been less than a year, I forfeit 90 days of interest. If I need to cash it out and it’s been more than a year – I forfeit 180 days of interest.
I just checked the website
http://www.sdccu.com/pages/rates/DepositRates.pdf
The rates are pretty much the same as last week…
The cd rates are on the 2nd page of the pdf.ParticipantI rolled a cd last week. From a 4.5% one (that expired darn it) to a 2+ percent one.
I signed up for the 60 month non-promotion rate – after asking about what I’d lose for early withdrawal. I do not *plan* on needing the money in the near term – this is my emergency fund (you know, in case I get laid off, etc.) If I need to cash it out and it’s been less than a year, I forfeit 90 days of interest. If I need to cash it out and it’s been more than a year – I forfeit 180 days of interest.
I just checked the website
http://www.sdccu.com/pages/rates/DepositRates.pdf
The rates are pretty much the same as last week…
The cd rates are on the 2nd page of the pdf.ParticipantI rolled a cd last week. From a 4.5% one (that expired darn it) to a 2+ percent one.
I signed up for the 60 month non-promotion rate – after asking about what I’d lose for early withdrawal. I do not *plan* on needing the money in the near term – this is my emergency fund (you know, in case I get laid off, etc.) If I need to cash it out and it’s been less than a year, I forfeit 90 days of interest. If I need to cash it out and it’s been more than a year – I forfeit 180 days of interest.
I just checked the website
http://www.sdccu.com/pages/rates/DepositRates.pdf
The rates are pretty much the same as last week…
The cd rates are on the 2nd page of the pdf.Participant[quote=CDMA ENG]
If you didn’t notice that is the man who plays “Silent Bob”… He just needs to STFU on this one as well. 😛CE[/quote]
LOL – they showed Kevin Smith’s picture because he was kicked off a southwest plane early this year for being too fat. He’d bought 2 seats – but was trying to go standby on an earlier flight seated standby on an earlier flight and they bumped him for being too fat.
Participant[quote=CDMA ENG]
If you didn’t notice that is the man who plays “Silent Bob”… He just needs to STFU on this one as well. 😛CE[/quote]
LOL – they showed Kevin Smith’s picture because he was kicked off a southwest plane early this year for being too fat. He’d bought 2 seats – but was trying to go standby on an earlier flight seated standby on an earlier flight and they bumped him for being too fat.
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