May 31, 2007

CD Crazy.

Since I'm risk-adverse and I get all wide-eyed and bushy tailed at the thought of a high-rate CD, I pulled out $5000 from my "Maximizer" checking account and put it into a 4.26% 11-month risk-free CD at the bank. Of course I went to the bank to deposit my paycheck, but how could I say no to an 11-month "risk-free" CD? Well, supposedly I can take out money once a week with no penalties, and all I have to do is go to the bank. I figure the harder it is to get to my money, the less likely I'll spend it.

I considered pulling my $7,400 from my crappy CD and putting it into the new one, but it turns out that the penalty to take it out (about $100) would be just about as much as the extra cash I'd make if I moved it to the slightly higher-rate CD.

So, gee, now I have three CDs. Is that crazy? The one I signed up for online hasn't gone through yet. I still need to call the bank. It's really frustrating that the online version of my bank and the in-person version don't really talk to each other, with the exception of sharing my account information. I just wanted to sign any documents needed for the CD to be set up, but I can't do that at the bank. I have to call them and deal with the automated system. Oh what fun.



5 comments:

Wanda said...

Hi, welcome to the blogosphere! I just stumbled onto your blog from pfblogs.org ... I love reading blogs by 20-something women like myself. :)

By the way, ING Direct is offering a 5.25 APY 9-month CD. That's higher than some 1-year CDs out there.

Feel free to stop by my blog if you have a chance.

Jess said...

Ah, I swear I wasn't looking for this but I found it accidentally, anyway. I mean, I am addicted to PF blogs. You might want to use a different picture that's not on your LJ, too (and obviously you, for someone who knows who you are) if you want to keep it more secret.

:-\ I feel kind of bad for finding it....

Dimples said...

Just found your blog via wanda's. Welcome indeed. I wish I could give you advice about CDs but I haven't gotten to that level yet with my financial empowerment journey. Ever thought about putting the money into a high-yield savings account with an online bank. I have an account with ING Direct and one with Citibank. If you worried about having easy access to your money then online bank accounts might be the solution. No brick and mortar facilities where you can walk in or drive up and withdraw your money.

Hope this helps.

Dimps

SF Money Musings said...

Why don't you put the money from your cd into a ROTH IRA with a S&P 500 fund?

the returns are higher and while the S&P 500 are all stocks, it's got a pretty good track record. today (friday) it averaged its all time trading high.

Her Every Cent Counts said...

jess: no worries. i figured some people would find me. as i wrote in my latest entry, i'm just a little ashamed about being so spoiled. Also, it's just not "normal" in our culture to speak/write openly about our financial situations. I'd prefer to be open with who I am in this blog. Obviously I'm not hiding much, so if someone has been following my blogs for a while they can pick up on my style of writing and similarities in what I talk about. Feel free to keep visiting if you'd like. :)

dimples: I've thought about using an online bank but I'm always worried about splitting my money up in too many different places. I like having all of my checking/savings at Bank of America and then putting my mutual funds & roth IRA accounts into vanguard. I'm most worried that somehow I'll lose track of where my money is and then I'll just lose my money.

sf money musings: I already have $3000k put towards my Roth IRA this year. I can put $1000k more towards it, I guess, but I think I can only add that to my 2050 retirement fund that the other $3000 is in. But I'm confused about that.

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