Breaking A Cd For $500/Year For 4 Years

Ltssharon | May 31, 2023 | 471 posts since 2020

I'm kind of wondering what kind of dollars motivate you to break a cd.

Specifically, would you break a cd if you could make $500/year more for 5 years?

The new cd would have a 6 month early withdrawal penalty.

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Answers

John19 | May 31, 2023 | 395 posts since 2022

I wish I had the answer. I have an Ally 4.35% five year CD with a five month penalty, so I could break it for a 4.75% five year CD and still make money. It's hard to say because maybe rates go higher later in the term and it would be better to break it then? Whatever the math your comfortable with. I don't know what do with mine, I'll wait till the rates hikes are over and would probably only break it for another direct CD. Above 5.25% and I would probably look to break it.

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