Is the DepositAccounts audience one that believes in "buy and hold to maturity" or is this an audience that values the flexibility of partial withdrawals; potential of bonus interest when interest rates are steady or fall; and the option of refinancing CDs to increase the CD's value at maturity when interest rates rise? How do you assess the value of new options that bankers are now starting to offer where any change in rates delivers more value to depositors than old fashioned CDs?
Answers
You should already know from reading DA that if a "better deal" is offered some will bite the bullet.
Those with the IRA accounts not so much
If Fed goes up a quarter point on 13 December, my Bellco Index Advantage CD will go up a quarter point, to 2.7% APY, on 1 January for (what will then be) a 39 month CD . . . . . with additional CD interest rate hikes entirely possible through 2018 if the Fed boosts rates again next year.
So would I accept a slightly lower interest rate to obtain another CD indexed to the Fed rate?
In a heartbeat. But I have seen no other such CD offerings, and Bellco pulled their indexed CD not long after I bought mine. When it comes to CDs, the good die young.