Looking into investing money, CDs?

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9,365
Location
USA
I'm looking into investing in a CD. I'm doing it for short term until I need the money to put 20% down on my house in June 2010. Right now, my money is sitting in a checking account earning 0.05% a month, I have money in a money market earning 0.15% a month also. My bank is offering CDs for 1.74% for 9 months which is the time frame I'm looking at. Do I have any other options to make some money in the short term?
 
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9,679
Location
Central Coast, Calif.
I don't know how much you have to invest but a CD might be your best option for short term money. You can shop around and get a slightly better rate. Quite a few are offering around 2.5%. with $20,000 a 1.74% 9mo CD compounding monthly will earn you $262 Same situation with 2.5% will earn you $378
 
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12,385
Location
Northern CA
 Originally Posted By: oilboy123
CDs would have been a safe bet in the 401K freefall land....... Something to be said for money that is not losing value.......
After inflation and taxes a CD usually does lose value. What you get is a guarantee that you won't lose much value. For a short term investment, Joe Sixpack doesn't have a much better option.
 
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16,150
Location
Silicon Valley
If you know exactly when you will need the money, CD is great. Most CD can be withdrawn with minimal fine even if you need it in an emergency. Check out some online only banks like ING Direct or emigrant. If the size is big (i.e 200k or more) you can go into the bank and negotiate with the manager on the rate. My dad used to do it.
 

Cutehumor

Thread starter
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9,365
Location
USA
I'm investing a year's salary, so it's a substantial amount. I checked out bankrate.com, they had some banks with the highest rates that I never heard of. I'm kinda weary. especially with the bank failures that are happening the past few months. FDIC insured, but I'll need the money in a year for a down payment on a house.
 
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35,994
Location
ME
Sometimes you can get a tick better interest rate if they combine all your checking/savings/loan assets and make you a "gold level" customer. Check with your brick & mortar bank.
 
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3,393
Location
Raleigh ,NC
I keep credit Union accounts for this purpose. I have a money market account that pays a little over 2% currently.They have a branch just up the road. So I don't need to deal with some bank I have never heard of.
 

JHZR2

Staff member
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44,838
Location
New Jersey
I'd open an account at ING. May not be as high as a CD, but their rates tend to be good, as is their service, IMO. Plus it is entirely flexible, you can get 6mo CDs there, IIRC, and you will then have a high-yield savings account which is reasonably convenient and a good thing to have long-term, IMO.
 
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