As funds exceeding my $1K emergency fund, I wonder if they would benefit more from earning passive interest from a CD account. What are your thoughts?
Flipping through my emails I am starting to pay more attention to Interest Rates for various financial vehicles. One area is Certificate of Deposit Accounts.
My Emergency Fund is only earning a 0.25% dividend rate (on balances over $150). The rate not so good, but the quick availability of funds is good (for an emergency, right?).
However, there are funds above and beyond this amount sitting around that could benefit from earning a higher interest rate. Since, I have a major purchase coming up in the next 3-5 years, I will look at the Ally 2 Year Raise Your Rate CD
(I’ve taken a like to Ally. There website is ultra user friendly – makes me a happy camper to use them as an example in my posts).
Bank CD Rates
About the Ally 2-Year Raise Your Rate CD
- With our Raise Your Rate CD, you can call Ally for a one-time rate increase if our rates go up any time during your 2 year term.
- Plus, with our Ally Ten Day Best Rate Guarantee, when you fund your CD within ten days of opening or when your Ally CD renews, you automatically get the best rate we offer during those ten days. Most banks offer only one rateâ€”the one you get the day you fund.
- We don’t require a minimum deposit. Most banks do. Always be sure to check their fine print before choosing the right product for you.
When you withdraw money from a CD before its maturity date. You will usually be charged a fee for an early withdrawalâ€”unless you have our No Penalty CD.
- Certificate of Deposit Calculator by Ally Bank
- The DVD Method to CD Investing: The Only Way To Achieve Maximum Yield by Financial Samurai