60 month certificate getting a low rate –
Help So I have A 60 month cd only getting2.23% – I need to move this to something yelse and not sure what – just looking to make some $s but not lose $. However it will cost or I should say I’d lose $784 – what do I do. Just take the money and put it somewhere where I can recover some of those $s? And then where?? Thank you
Terry Says
You obviously bought the 5 year CD when rates were lower — or perhaps you didn’t check and just settled for a lower rate at your bank than you might have gotten by shopping around.
Right now, 5-year Treasury securities are yielding about 4%.
What you should do depends on how long you have held the CD, and the penalty amount. Ask what the amount of the penalty is if you break the CD. And next time, buy shorter-dated CDs so you can renew them more frequently and have access without penalty. If rates drop, you’ll be sorry at renewal time. But it’s better than taking a penalty.
