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Value Of Long-Term Cds With Low Early Withdrawal Penalties

Monday, August 9, 2010 - 8:34 PM
More people are picking up on the value of long-term CDs with low early withdrawal penalties. This article was just published at the MoneyWatch.com blog on the deal at Discover Bank. Discover's 10-year CD currently pays 3.50% APY and the early withdrawal penalty is 9 months of interest. As the article describes this can give you the best of both worlds. I discussed a little about this in my recent Discover Bank review.

As I mentioned last week, Pentagon Federal Credit Union also has a good long-term CD deal (3.75% APY 7-year). However, its early withdrawal penalty is 12 months of interest.

The best deal continues to be at Ally Bank which only has a 60-day penalty on its 5-year CD. HOWEVER, the rate continues to slowly drop. It just fell from 2.94% to 2.89% APY today.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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