Quote:
Originally Posted by retiredguy123
To me, bank CDs don't make sense and they haven't for at least 20 years. My "go to" place to check on the highest current rates is Penfed.org. It is a credit union that is always competitive with bank CDs. Their current rate for a 3-year or 5-year CD is 3.25 percent. I would rather take a small risk and invest in the Vanguard short term bond index fund that is paying 3.81 percent, and has more liquidity than a CD. The Vanguard money market fund, with no risk, is paying 2.52 percent. I stay away from bank CDs altogether because, unlike 30 years ago, the banks will not give you a good deal because they don't need your deposit.
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That does appear to be the better deal and there are no fees or cost associated with stock choices?
I did find online rates for cds including 3.65%/5 yrs and 3.55%/3 yrs. It’s not enough to cover inflation but better than a sharp stick in the eye, (stock loss). It will be interesting to see what cd rates due after October 1st.