About CD investing

[gavinmccallister]

I was at work today and I was talking about interest rates and she informed me about having the interest from a CD put into your savings account monthly so you can earn interest on your interest I never thought of that I always let the bank keep the interest in my CD. Does anyone else have any suggestions on CD's that I haven't been aware of? I am up for any "Secrets of CD Investing".

[sweeps]

Gavin, be aware that the advertised APY on the CD assumes that you reinvest the interest. If you take the interest out and put it in a savings account with a lower interest rate, you'll get a lower effective APY.