bank rates

Help! How Should I Reinvest A $7,900 CD?

I have a certificate of deposit that matures on Saturday and can’t decide where to reinvest the money.

It’s been earning a modest 1.24% over the past 13 months.
When I bought it, I wanted a relatively short-term investment, expecting that interest rates would surely turn around by now.

Silly me.

When my last CD matured in December, I took advantage of a local deal we wrote about and bought a 24-month CD that pays 3.00% APY.

I felt very good about that decision.

But I don’t see anything even close to that right now and can’t decide whether to go long or short, or which of the top-paying banks to use.

The redemption value is $7,900, although I’d dip into my savings account and meet a $10,000 minimum deposit for the right deal.

Any ideas on what I should do?

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Comments (4)
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4 Existing Comments
  1. SeniorSaver said:
    on February 8th at 04:37 pm

    If I had $7,900, I’d put it in an online savings account at either American Express Bank or Capital One, then wait for the next online bank CD promotion somewhere. Alternatively, by adding $2,100, you can open the 1.75% APY 24-month special CD at Salem Five. Their web site still shows this rate as being available at 5:27 pm EST (they usually change rates on Tuesday afternoons). Just call Lisa in Customer Service and say that “Charles from Thermal” sent you. She can shepherd you through the process.

    I think Bernanke has lost control of long-term (3 to 10) year Treasury rates, and that CDs of that maturity will go up soon and rapidly. Shorter-term CDs and savings account rates will continue to be at depressed levels “for an extended period,” courtesy of the Chairman.

    But, like you, I haven’t correctly predicted interest rate treands in a long, long time–and I don’t know why that should change now!

  2. ash cordes said:
    on February 9th at 01:22 pm

    I would look into a fixed annuity with the way interest rates are likely to go up.

  3. Earl said:
    on February 11th at 12:35 am

    I would put it in an Ally 5 year CD. They only have a 2 month early withdrawal penalty. As long as you leave it in for at least 1 year, you still will get about 2%. Leave it in for two years you will get 2.2%. So on and so on until you get your full 2.39% if you leave it in for 5 years.

  4. Ian said:
    on February 11th at 02:50 pm

    Look into LendingClub or another P2P lending service (http://lucracy.com/2011/01/the-rise-of-p2p-lending/) While they can’t guarantee returns, you can pick a relatively safe one while maximizing your return.