http://jumbocdinvestments.com/cd_rates_blog/2008/02/what-is-the-best-cd-term-to-invest-in/ Blogging through the CD Rate World Tue, 13 Oct 2009 13:16:16 -0600 http://wordpress.org/?v=2.8.4 hourly 1 http://jumbocdinvestments.com/cd_rates_blog/2008/02/what-is-the-best-cd-term-to-invest-in/comment-page-1/#comment-2036 Administrator Wed, 06 Feb 2008 14:17:58 +0000 http://jumbocdinvestments.com/cd_rates_blog/2008/02/05/what-is-the-best-cd-term-to-invest-in/#comment-2036 That is an excellent comment. In the not so distant past, when rates reached these levels and lower, we helped many people find low penalty CDs. That is an excellent comment. In the not so distant past, when rates reached these levels and lower, we helped many people find low penalty CDs.

]]> http://jumbocdinvestments.com/cd_rates_blog/2008/02/what-is-the-best-cd-term-to-invest-in/comment-page-1/#comment-2035 Ken Wed, 06 Feb 2008 01:25:09 +0000 http://jumbocdinvestments.com/cd_rates_blog/2008/02/05/what-is-the-best-cd-term-to-invest-in/#comment-2035 Another thing to consider are the early withdrawal penalties. I've seen some banks and credit unions with early withdrawal penalties that are half the total interest for the entire term. For a 5 year CD, that's 2.5 years of interest penalty. If the penalty is only 3-months of interest, a 5-year CD would be less risky. If rates do shoot up in 2009 or 2010, you can do an early withdrawal without losing too much, and then put the money into the higher rate CDs. Another thing to consider are the early withdrawal penalties. I’ve seen some banks and credit unions with early withdrawal penalties that are half the total interest for the entire term. For a 5 year CD, that’s 2.5 years of interest penalty. If the penalty is only 3-months of interest, a 5-year CD would be less risky. If rates do shoot up in 2009 or 2010, you can do an early withdrawal without losing too much, and then put the money into the higher rate CDs.

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