http://www.penny-saved.com/2006/01/27/a-cd-ladder-as-a-tool-for-savings-strategy/ Personal Finance and Wealth by the Penny Sun, 05 Sep 2010 12:29:05 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://www.penny-saved.com/2006/01/27/a-cd-ladder-as-a-tool-for-savings-strategy/comment-page-1/#comment-13 A Penny Saved… : Are CD’s becoming short term again? Sun, 16 Apr 2006 05:32:04 +0000 http://www.penny-saved.com/2006/01/27/a-cd-ladder-as-a-tool-for-savings-strategy/#comment-13 [...] Generally, the longer a financial institution can hold your money, the more money they make off of it.  So if they can make you lock your money into a 18 month CD to get a rate comparable to a high interest savings, they will.  It would seem that they are feeling some pressure to offer those higher rates on shorter term CD’s which is excellent if your in the mood for a CD Ladder. It is also excellent if your still a little queasy about having your money in an online bank and want something that pays better than a local savings account.  Of course, most of the higher paying ones are through the internet banks, but i have seen a couple of 12 month CD’s that have paid 5%+ at my local institutions. [...] [...] Generally, the longer a financial institution can hold your money, the more money they make off of it.  So if they can make you lock your money into a 18 month CD to get a rate comparable to a high interest savings, they will.  It would seem that they are feeling some pressure to offer those higher rates on shorter term CD’s which is excellent if your in the mood for a CD Ladder. It is also excellent if your still a little queasy about having your money in an online bank and want something that pays better than a local savings account.  Of course, most of the higher paying ones are through the internet banks, but i have seen a couple of 12 month CD’s that have paid 5%+ at my local institutions. [...]

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