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  1. #1
    Reputation: roadfix's Avatar
    Join Date
    Jun 2006

    CD's vs High Yield Savings

    I have a savings account with a brokerage firm and am currently earning 3.30% APY. They also have CD's. Their 1 year CD for instance earns 3.00% APY. They're both FDIC insured.

    Now, why would anyone want to tie up their money for 1 year on a CD if they can earn more money by opening up a regular savings account instead under the same bank?

  2. #2
    Pals around w/ humorists
    Reputation: magicant's Avatar
    Join Date
    Apr 2006
    Only thing I could think of is the savings rate might drop below 3%, whereas the CD is locked. It is pretty silly, though.

    ING direct has 4.5% interest on 18 month CDs right now, btw.
    Those are my principles, and if you don't like them... well, I have others.
    Groucho Marx

  3. #3
    Reputation: roadfix's Avatar
    Join Date
    Jun 2006
    Thanks Joel, I'll check out ING Direct.
    Last edited by roadfix; 09-21-2008 at 02:32 PM.

  4. #4
    still shedding season
    Reputation: kykr13's Avatar
    Join Date
    Apr 2008
    Duh - you can listen to a CD. Try that with your fancy schmancy savings account!

    //Check a local credit union, however they're probably not (maybe always not) going to be FDIC insured. My local CU is solid but this is more of a concern than it was in recent years... This spring, ING had some really good deals, but the local CU had something that was almost identical.

  5. #5
    Rep *****.
    Reputation: firstrax's Avatar
    Join Date
    Nov 2001
    Your money's in Joe's house...right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others........................Tommy would you tell'em what you saw..............

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