Comments on: Are CDs Obsolete?

By: Joshua Townsend

Joshua Townsend — Tue, 03 Aug 2010 14:27:09 +0000

Using today’s sub-2% CD rates and a 4% annual inflation rate doesn’t quite make sense. In 2009, deflation took place for 8 months.

By: The Simple Dollar Weekly Roundup: Link Choice Edition | Frugal Living News

The Simple Dollar Weekly Roundup: Link Choice Edition | Frugal Living News — Thu, 08 Jul 2010 07:59:08 +0000

[...] Are CDs Obsolete? CDs should be evaluated as being roughly equal to savings bonds and savings accounts. If you can get a better interest rate elsewhere, don’t buy a CD. (@ my dollar plan) [...]

By: The Simple Dollar Weekly Roundup: Link Choice Edition

The Simple Dollar Weekly Roundup: Link Choice Edition — Wed, 07 Jul 2010 21:18:08 +0000

By: Suzanne

Suzanne — Wed, 07 Jul 2010 20:26:25 +0000

I recently got a 5 month CD for 5%. Was this a bad idea?

By: The Simple Dollar Weekly Roundup: Link Choice Edition | Tolly Blog

The Simple Dollar Weekly Roundup: Link Choice Edition | Tolly Blog — Wed, 07 Jul 2010 16:06:45 +0000

By: The Simple Dollar Weekly Roundup: Link Choice Edition | Financial News and Information

Wed, 07 Jul 2010 14:58:42 +0000

By: Darren

Darren — Tue, 06 Jul 2010 20:51:35 +0000

Yeah, like Sam mentioned, I also have a 5-year CD at 4% with Citibank. It wasn’t offered online – sometimes you need to go to your local branch to get a better deal.

By: Benjamin Bankruptcy

Benjamin Bankruptcy — Tue, 06 Jul 2010 00:10:15 +0000

Maybe your readers should look further a field. The Australian Government (employment rate 5%, only g20 nation to not have a recession, smallest debt to gdp ratio of the g20) is offering bonds at 6.25%. The financial sun doesn’t rise and set in the states or BRICK nations

By: Seven Things I Think I Think (and Personal Finance Links)

Seven Things I Think I Think (and Personal Finance Links) — Mon, 05 Jul 2010 20:53:58 +0000

[...] My Dollar Plan wonders are CDs obsolete? [...]

By: Financial Samurai

Financial Samurai — Wed, 30 Jun 2010 02:50:39 +0000

I’ve got 5 year CDs making 4% at USAA.

It’s not dead at all. In fact, CDs are alive and kicking!

By: BankVibe

BankVibe — Tue, 29 Jun 2010 23:52:01 +0000

This is a great post! I think CDs are obsolete in times like this where our economy is so unstable. You can’t find a high enough rate to make putting your money in a CD worth it. Making $13 in a year on $10,000 doesn’t even pay for inflation.

By: Jill

Jill — Tue, 29 Jun 2010 21:08:21 +0000

Thanks everyone for the input. Be sure to check out Madison’s post on a way to get around some of the low-interest issues: http://www.mydollarplan.com/un.....gher-rate/

By: Jill

Jill — Tue, 29 Jun 2010 21:06:33 +0000

Thanks Bryan. Maybe we’ll explore bond funds in a future post.

By: Jill

Jill — Tue, 29 Jun 2010 21:02:51 +0000

Thanks for your input! I definitely see your point about inflation, but that’s one of the main “risks” of keeping savings in cash, which is otherwise risk-free. It’s not ideal for all of your investments, but certainly an emergency fund and may 5% or so of your investment portfolio should be in cash or cash equivalents. Stocks/bonds have liquidity issues as well as a risk of losing some or all of your money. The risk is small, especially in a diversified portfolio, but it’s there.

By: The Best Money Blog

The Best Money Blog — Mon, 28 Jun 2010 22:17:38 +0000

Good post. I’ve always laughed when I login to my Ally savings account and see that the Cd’s are only .1% higher or something.

Even with $10,000 in a CD I’d only make $13 extra dollars over the course of a year. That is hardly worth the sacrifice in liquidity.