7 Year Or 5 Year Navyfed CD

DaveJ | Jun 13, 2019 | 40 posts since 2016

I am worried rates are going to start drifting down. I'm wanting to lock in some higher rates for a longish term. I will be opening over 100k so rates at NavyFed are 3.25 for 5 and 3.35 for 7.One year interest penality if early withdrawal. Any better alternatives anyone can think of. Would you go 5 or 7?

Post an answer

Answers

Peyton18 | Jun 14, 2019 | 21 posts since 2019

I just recently found this website in search of higher rates. I am thinking 7 year term for myself. It seems many countries are more content with lower rates now than in the past. I’m thinking the new “normal” is going to be lower that what savers would like to see.

Sylvia | Jun 13, 2019 | 389 posts since 2012

Andrews FCU has a 7 year at 3.45% APY that calls for only $1K minimum deposit. EWP of 360 days. For 5 years, you can do a tad better at Connexus ($3.35%, $5K min). If both 5 and 7 year rungs are empty on your ladder, why not put some in each?

DaveJ | Jun 13, 2019 | 40 posts since 2016

Thanks Sylvia. A good idea, but I have a IRA at Andrews, and after the way they handled my membership, opening of CD and general customer service, I swore they would never get another dollar from me. I will move IRA money from them when it matures.

EarthVisitor007 | Jun 14, 2019 | 25 posts since 2019

That's a tough one. I have a similar dilemma. Generally speaking if rates are going down then I lock in long. If rates are going up then I lock in short with the intention that when they flatten then I lock in long as they mature. If rates are flat (or barely moving up or down) then its a tough call. Especially, when different FED chiefs have contrasting approaches. If I think rates will be flat for an extended period of time, then I will lock in long for the best rate. I believe the current FED would like to get rates back to something more historically normal like 5%. However, that will depend on whether or not the economy will support it. I have what I would describe as uneven ladders. As I am opportunistic and take advantage of deals if the timing is good for me. I generally stay away from Jumbos because it locks up too much capital for my comfort. When I can't decide I split the difference and would do 50/50. Sorry but my crystal ball in divining future rates isn't any better than anyone else's. Given all that, in your case, I would go with the 5 year. I don't really feel like the extra 0.1 is rewarding you good enough. The good news is, I think either one could work out okay.

DaveJ | Jun 14, 2019 | 40 posts since 2016

Thanks EV007, I went thru a 3-4 period when I just knew in a year or two rates would return somewhat normal and went short and had as low as 0.95% 1 year at PenFed on an IRA CD. I've been very happy to have some $$$ maturing and being able to take advantage of some 3.75% and 3.4% CD's. Now I'm so worried rates will slide again for a few years that I did an early withdrawal on two 2 year raise your rate CD's at Ally and bit the small 60 penality and leaning to the 7 year to not have to visit again for several years. I have other $$ Maturing next year, and the next and in 3 years and 4 1/2.

Ricochet | Jun 14, 2019 | 522 posts since 2010

With your coming maturities it seems to be perfect for building that 5yr CD ladder.
Then figure balancing the $$$$

DaveJ | Jun 14, 2019 | 40 posts since 2016

Thanks Ricochet and others for answers. I pulled the trigger a little while ago on a 7 year 3.35% at NavyFed. Saw this am PenFed lowered again, so I figured I'd go the longest term to try to have a 7 year lock. Time will tell if right or wrong, and I've been both in the past.

trader531002 | Jul 12, 2019 | 8 posts since 2019

gte financial 5 year 3.3 with add on

Bambuk | Jul 12, 2019 | 3 posts since 2019

Hands down the best deal right now is GTE Financial 3.30% for Jumbo CD. Add on feature. 180 days EWP.

Robb | Jul 13, 2019 | 322 posts since 2018

And Navy for sub 100k at 3.5% for a 5 year term. There are still some decent local deals.

Bambuk | Jul 13, 2019 | 3 posts since 2019

Not everyone is eligible for Navy

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.