Comments For: 3.50% 48-Month CD at Rollstone Bank & Trust in MA - Local Only

Anonymous - #1, Sunday, December 20, 2009 - 5:04 PM CT

Although I am in Mass and may qualify for this, but who would be stuck with the money for 4 years and earn a mere 3.5%?

Anonymous - #2, Sunday, December 20, 2009 - 6:01 PM CT

Who knows?
The way things are going, 3.5% may look pretty good even 4 years from now.

Anonymous - #3, Sunday, December 20, 2009 - 8:22 PM CT

If you invest in fixed income as I have in the last 32 years I think you will find that you loose money while waiting for rates to go up. Always start your CD's by laddering them. As they become due go out as long as you have to go to get the highest current rates. If you have to go out 2 years, 5 years, 7 years, 10 or 15 years. You can always get your money if you need it. You loose while you wait.

Anonymous - #4, Sunday, December 20, 2009 - 10:05 PM CT

I agree, that if you have to do CDs, laddering is the best approach.

But why wouild one do CDs when Reward Checking Accounts (RCAs) are at 5% (liquid money)??

Banking Guy - #5, Monday, December 21, 2009 - 6:44 AM CT

I hope reward checking accounts can maintain high rates, but there's no guarantee. I remember in 2007 when State Bank of Toledo was offering a 6% with no cap on its reward checking account. It didn't seem to make any sense to go with a long-term 6% CD at PenFed. Now, that reward checking is only paying 2.51% with a $70K cap. It's still a decent deal for liquid cash, but it's a big drop from 6%.

Anonymous - #6, Monday, December 21, 2009 - 8:18 AM CT

That is precisely why I use the CD ladder approach. Started that years ago and am very happy with it.

And thanks to Banking Guy and this site, I have built a very sturdy CD ladder on which my wife and I enjoy a secure and comfortable retirement.

Anonymous - #7, Monday, December 21, 2009 - 9:42 AM CT

Thanks for the laddering CD idea and the comparison of RCAs vs. CDs; both timely and beneficial.