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For those of you that play the CD game, what's the percentage rate that has you looking for a new bank with a higher APR when your CD matures? It's always been sort of been a pain for me deal with all the time. Assuming you have a large balance ($100k or more) how much of a gain to you need to make so it's all worth while? Case in point, my current Ally CD will be rolling over to 3.75% while other banks including brick and mortar banks around me are offering 4%, some even with 14 months to choose from. In my case it's a $313. yearly difference which I know isn't a lot but how often do you make $313. for an hours work? I only wish more banks would match rates better, I know most if not all online banks refuse to match other banks. Sort of a take it or leave it situation.
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I've personally always been more of an I-Bond guy than CDs. Yes, they have more restrictions ... But if the intention is for the money to simply sit safe & secure for years on end while keeping up with inflation, I-Bonds for the bill nicely. New issues of I-Bonds are currently earning 4.26%, which even includes a 0.9% fixed component (above inflation) that will never change for the (up to 30yr) life of the bonds.
tl;dr -- forget CDs, I'd move into I-Bonds. -
I don't think there is a magic number you are trying to hit w/ CD's. It's simply a safe place to hold some money, keep it pretty liquid and available, yet still earn a little interest off of it. If you are looking for high yields, choose investments other than CD's.
I wouldn't jump around to different banks to pick up a fraction of a percent, just stay with my current bank and get the best deal they have available.
There are occasions where a bank is looking to raise capital so they offer CD rates much higher than their competitors, but typically most banks in an area are pretty close on their CD rates.Comment
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I guess no real magic number, I just hate passing up easy money even though I'm financially secure, guess that's why I'm in this position. As a side note, I have investments spread around many other different investments. I guess I've always liked CD's simple because it's real cash I can easily get my hands on unlike most other investments including I Bonds which takes a few hoops to jump through.Comment
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I get around 3.5% on my cash in a MM.
A CD could do a little better, but I would lose instant access to the money, and I don't keep enough cash around to move the needle enough to make it worth it.BrianComment
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