I’ve just opened the second of six CDs in our emergency fund CD ladder. We went with the 6-month 3.00% APY at ING Direct. I’m not sure this is the best deal we could have gotten, but I think sticking to the right date was more important than a few extra basis points of interest. Not to mention the ease of interacting with the ING website and our other accounts there.
Note for the future though: do some rate research a couple days in advance so that we can move the money to the right place in advance of the opening date. I’ll mark something on our calendars for something like 5 days in advance, or will that not be enough?
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davmp //
2008.12.10 at 4:49 am
Incidentally, since we opened our FNBO Direct savings account, I took a look at the rates they’re paying for 6-month CDs and it is significantly better than ING Direct’s rate. FNBO is currently offering a 3.75% APY for a 6-month CD versus ING’s rate of 2.75% APY. Yes, ING’s rate has already dropped from the value in the above post!
While it may be more effort to open a CD at FNBO, it seems like it will be well worth it. I’ll write up a post about the process once I’ve actually completed it.