cd question (Terry says “ripoff”!)
I have any existing cd and is earning .15% for 4 years that’s not within my Roth IRA. It comes up for renewal on May 23rd. I was wondering if I can cash it out and open a new cd within my Roth IRA. I’m 68 years old, retired, receive social security and a pension. My home is paid off. I’m also set on my chicken money and not of need the money right now. Could you please suggest a time length for my cd with a better interest rate. Thanks so much. I have learned so much from you over the years. Have a great weekend.
Terry Says
What bank snookered you into a 4-year CD at a rate of only 0.15%?! Even four years ago, when rates were much lower, that was a ripoff!
Please walk into the bank and show them this response. You should earn at least 3.75% on a 6-month CD. And that is what you want — 6 months.
If they won’t give you that rate — then just ask them to give you a check for the amount of the CD. (Since it’s not inside an IRA, there are no tax consequences.) You can easily find a higher rate if you look around. I just saw that Wintrust is offering a “special deal” of 4% for a 7-month CD for new money!
And be sure to tell them that I plan to write a column about what happens to a senior at this particular bank if they don’t offer you a good rate.
Please write back and let me know what happens!
