do you invest money in cds?

[Grumpy's Gal]

Do you invest money in cds? If so, do you just leave the interest in there? Do you try to stagger them so one will be due in a year, one in two years etc?

Just curious. What about savings bonds? Any opinion if those are better?

 

[Sweettears]

You probably should consult an advisor. However not knowing your financial status and your objectives, if investing in cds I would stagger the maturities as you suggested.

 

[Gumbo4x4]

No

 

[MillauFr]

No. I just prefer to put my short term cash in a short term bond fund.

 

[Hook326]

I invested some of my (minor) kids’ money in a cd. I wanted something safe but more interest than their savings. I keep the interest in. My mom has some of her money in staggered cds. Works well for our intended purposes for those monies.

 

[QueenIsabella]

No, there are better investments. CDs only make sense if you're concerned you won't be able to resist the money. Even then, you're probably better off going with something with a higher yield, and just telling yourself it's off-limits. There are many investment choices, most with better returns than CDs. An advisor would be helpful to look at your specific issues/needs, and then find investments that work for you.

 

[mnrose]

We do a CD ladder with a part of our retirement account. I feel, at the moment, that stocks are very iffy. We still have a sizeable amount invested in the market, but felt better with some of it "moved to the side" so to speak in CDs. I chose maturities of 3, 6, 9, 12, 15 and 18 months. When the 3 came due, it went into another 18 month. So, every three months one comes due. At some point, the money will go back into the market maybe. On "on the side" money is what DH and I could live off of IF we lost everything else in the market. Not planning on doing that, but better safe than sorry. Our financial advisor tells us to do what makes us comfortable. Who cares what others think?

We wanted something very safe. CDs are as safe as it gets honestly. Nothing else has that level of safety. As I say, we still play with a pretty large sum of money in the market. But, for some, we wanted safety.

 

[barkley]

with 2 year, minimum $2000 deposit cd's at 2.02% apy and readily available no fee/no interest for 18 month credit cards I have no problem setting up multiple laddered cd's with my 'emergency fund'. I get more bang for my buck them than any other secure/easily accessible/liquid 'savings' account.

if an emergency comes up I can use one of these cards and unless the emergency occurs within less than 6 months of opening the first cd I can time it out so that I pay no fees or interest to the card holder/reap the maximum benefits of the cd's interest prior to withdrawal.

CDs only make sense if you're concerned you won't be able to resist the money

a cd is no more difficult to withdraw from than a checking account. i don't choose to have mine connected to my debit card but if i were (imho given early withdrawal penalties) so foolish to do so, it is an option with many financial institutions.

 

[disney junky]

I have some money in CD's. I believe though the interest rates are low, they are safe. There aren't our only investments.

 

[soccerdad72]

Not anymore - for the most part, they make practically nothing.

 

[cabanafrau]

It's been a lot of years since we bothered with CDs.

 

[SteveH]

To much a pain in the backside to deal with CDs anymore. They used to be a pretty good investment, but when I compared money market accounts and CDs I didn't see the point for the small change in interest rates. Personally I don't use them or a money market but I deal with these types of investments for work. I shopped around for the best money market account, and found one that beat my banks rate. Make sure its FDIC/NCUA insured and keep the balance under $250,000 and you're safe, well assuming you trust the US Government.

That said they are way better investments, but for that you should meet with a non-sales commissioned investment advisor.

 

[Cannot_Wait_4Disney]

Do you invest money in cds? If so, do you just leave the interest in there? Do you try to stagger them so one will be due in a year, one in two years etc?

Just curious. What about savings bonds? Any opinion if those are better?

I look upon CDs as a short term vehicle to store money rather than an investment. I wouldn't get a CD with a long length.