Wednesday, March 14, 2007

Finally picked the high yield CD: 15 month @ 5.60% APY

I had some money that I needed to find a place to invest. My first thought was whether I wanted this to be risky money, or something solid.

About 2 months ago I rebalanced my portfolio from 70% stock to 50% stock....but other than some EE and I bonds, I still don't have any real safe investments.

On the other hand, this money was sort of money I did not expect to have....certainly not a huge amount, but perhaps money I could afford to take risks with. (I is not earmarked for any particular expense)

But given my shift to a more conservative portfolio, it made no sense to me to take risks.

I thought a bit about Gold because I have nothing in any sort of precious metals.....but I thought that maybe gold was a bit high and that there was as high a chance of losing as making....what's the point.

I was also considering the possibility of investing in say a savings bond of another country. This way I would not just get the interest, but get the advantage (or disadvantage) of any currency movements. (I think the dollar will continue to slide over time...but I am not any sort of expert, nor do I have any inside is a hunch)

So I went with the safest bet....a 15 month certificate from my Credit Union, US Alliance. It pays 5.60% APY for a 15 month term. It has a single bump-up option, and it's in there now. (I wasted weeks trying to decide and I lost interest in those weeks!)

I actually like all the rates of my credit union. They have good CD rates, good home equity rates, and great credit card rates with a 7.99% Visa Gold card. The do most of their transactions online with only a limited number of branches. I think Branches are expensive!

As for the CD....when the 15 months are up....who knows what I will do. But for now, I am happy with the safe 5.6%....slow and steady wins the race!

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Nice picture interesting.

3:57 PM EDT  

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