How much interest have you made this year?

[WellManicuredMan]

Re: How much interest have you made this year?

Don't forget that when CDs were paying double-digit interest, there was also double-digit inflation to go along with it.

True, but if you can lock in a double digit rate in a CD for 10 years you will probably be way ahead of inflation a few years down the road after inflation has gone back to more normal levels like 2-3%

[WellManicuredMan]

Re: How much interest have you made this year?

Banks have learned the err of their ways and I've not seen a 10 year CD for a long time.

EmigrantDirect has 10 year CD's you can get right now @ 5.35% APY

[safari]

Re: How much interest have you made this year?

EmigrantDirect has 10 year CD's you can get right now @ 5.35% APY

I don't think 10-year CD makes sense for anyone. If you got money to invest that you won't need in the next 10 years, mutual funds are a much better option. Personally, I am not going to consider long term CD's until the APY reaches 7%.

By the way, if someone is looking at a 10 year CD, Intervest Online is currently offering 5.77% APY. Here is the link: http://www.intervestnatbank.com/currentrates.htm

[WellManicuredMan]

Re: How much interest have you made this year?

I don't think 10-year CD makes sense for anyone. If you got money to invest that you won't need in the next 10 years, mutual funds are a much better option. Personally, I am not going to consider long term CD's until the APY reaches 7%.

Oh, I agree. I was just pointing out that they do still exist.

However, if CDs ever hit double digit returns again, then I'd seriously have to consider a 10-year

[joseblanco]

Re: How much interest have you made this year?

Safari & WMM, Thank you both. I think what you both mean is that CDs in a low rate environment do not make sense for MOST people until their rates result in a yield exceed or equal those of alternative investment vehicles and their safety factor tips the scales. Both of your comments seem to concur with and/or suggest the conclusion reflected in this statement.

Also, anyone with an investment priority of capital preservation would look toward CDs even in todays tepid (but heating up) rate environment.

[LuxLiving]

Re: How much interest have you made this year?

Well Joseblance, I tend to agree.

We are investing in CDs right now, not because it is the most profitable - but we are attempting to build a foundational base of safe and 'liquid enough' investments before we venture out in incrementally smaller units as we climb the pyramid toward more riskier waters with the few dollars/bread we can toss out there upon the waters.

We are in the short term - preserving capital mode of our life as well.