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  4. How Many Direct CD's At Different Online Banks Is Too Many?

How Many Direct CD's At Different Online Banks Is Too Many?

Sevenpercent
  |     |   17 posts since 2015

Say you have laddered CD's maturing at different times, and you want the best rate in effect when it matures.  I can see how you could easily have CD's at three or four online banks since there's always one running a promotion.

From a security standpoint, how many is too many? 

Are there any here that take the time and effort managing CD's at a few different online banks chasing the best yield?  What has your experience been and how do you manage the different usernames and passwords?

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3


Answers
Shorebreak
  |     |   4,039 posts since 2010
I have had a laddered portfolio of CDs at many different online financial institutions, at the same time, for years. That's in addition to Treasury Direct and discount brokerage accounts. It's not difficult and don't see a "security" problem involved. The management of usernames and passwords is no different than the myriad of of other web sites I utilize that require secure logon procedures. Just remember to change passwords periodically.
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9
Ally6770
  |     |   4,290 posts since 2010
Make sure you print or have a paper list of all CD's, with their amount, maturity date, banks name, phone number, account number, rate of interest, beneficiaries, etc somewhere in case of an accident, death, etc. I keep mine in a fireproof file that I have the key to and my children know where the spare keys are to everything. 
I like to keep a separate ledger sheet for every CD. separated in a notebook by Traditional IRA's, Roth IRA's and regular CD's, savings accounts, and checking accounts. When the CD's mature
I write where that money went if it was reinvested at another institution or it was renewed, if money was added to the original amount etc. I also write on each ledger sheet the amount that it was worth on Dec 31 of the preceding year. 
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7
TomW
  |     |   6 posts since 2015
I track this in a similar fashion on a spread sheet that I print out.  Adding the beneficiaries to my list will be a good addition.  I also note the early withdrawal penalty and amount.  In case something comes up it is handy to know. 
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4
Ratesaver
  |     |   187 posts since 2013
I ladder my cds in 25,000 dollar amts. I also have a ledger of sorts that I do as the others comments do.. I draw line through cds that come due a any given year... I also keep each ledger and never throw away any info.. Each yr I start a new ledger with the new cds and reenter the old ones.. I do not keep track of the profit interest or add it on until the yr. it rolled over or renewed at another bank or credit union...I write down usernames and passwords and keep changing them yearly. I may start to go to 35,000 cds in the future to cut down on paperwork....
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4
Anon456
  |     |   249 posts since 2011
some people complain that putting money in many different places or even laddering is too much trouble.  It takes way less time than clipping coupons, and turns out to be a pretty good paying part time job if you look at it that way ......  put your money to work instead of the other way around!

Thank you,KEN and DepositAccounts for making it that much easier.
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4
gbtexas
  |     |   78 posts since 2013
The number of CDs and the frequency of the laddering process is both theoretical and practical.  The theory behind sufficient laddering is quite simple.  The implementation of it is likewise simple.  The complexity of it is the maintenance of the program.  For some monthly laddering is too much.  Others might prefer quarterly applications.  Thus it depends on the temperament of the person.  But, whatever approach is taken, its best to maintain a record of all of the pertinent details of each CD.  Some prefer to do it in the time honored manner of keeping a journal and a ledger.  Others prefer a computer oriented approach.  I've used both methods and my preferred way is Excel.  And I try to keep it up to date at least quarterly.  Others might want to do it more or less frequently.  But as has been pointed out be sure to have an accurate record of each CD backed up in case of loss of the original documentation.  My preferred method is at least two USB drives.  Why two:  in case of failure of one of them.  And keep it or manual or print out sheets in a safe environment.  A fireproof safe is clearly one.  Another is to keep a secured USB drive on a key chain (don't use an unsecured one in case it becomes detached and is lost).
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3
Sevenpercent
  |     |   17 posts since 2015
I worded the title to this completely backwards, I must have been really tired that day.  It should have read: "How many different online banks for direct CD's is too many?".  Too bad I can't edit that.  Thanks for the replies everyone!
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