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CDS

cmdmfr

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I have been trying to look for a bank or agencies that have a good rate for CDS
for 1 to 2 years the best I have found was near or about 1.50% any one know of any agencies that might have a better rate. I am sure that there is almost no one out there I am not a money person so I am asking some one out there that might know more than me
 

SMHarman

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With Fed funds at 25 bps and Mortgage rates in the 300-400 range that is a good return in the current environment depending on how long the lock in is.

They should tick up soon a little with the Fed announcement
 

chalee94

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the banks aren't making much money on loan rates, so they won't pay much on deposits.

in a couple more years, if the Fed keeps raising rates, CD rates may be worth looking at...but at this point, if you are looking for a decent return, you have to put your money at risk (stocks, preferred stocks and such, which all have risk of losing principal.)
 

ronparise

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If you have money to invest then you are a money person, Like it or not

Cds are nice holding vehicles,but at todays rates not much more. If you want a decent rate of return Id look at bonds, (muni, corporate) just remember that unless you intend to let it sit until maturity, your principal is at risk, and there is usually not a good way to to invest your earned interest

Todays income investor has to take some risk for any significant income When I was a stockbroker I could generate a $100,000 annual income for my clients with as little as a million dollars invested in AAA bonds. Now that same million earns about what a fast food worker does.
 

cmdmfr

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That was the answer I expected but since I am not a money person I thought that it will not hurt to ask. I have been useing Ally and so far so good but l just have to watch the rates and as they go up go from there. Thank you to every one that has answered me
 

ronparise

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That was the answer I expected but since I am not a money person I thought that it will not hurt to ask. I have been useing Ally and so far so good but l just have to watch the rates and as they go up go from there. Thank you to every one that has answered me

If you are stuck on cds and you have significant money to invest I would suggest a laddered portfolio

a series of cds with maturities stretching out over 10 years or so. I did this for a charity that was restricted to government guaranteed investments
They put $100000 in 10 different cds, with maturities over each of the next 10 years, So when one matured they invested it in a new 10 year cd.(presumably thye highest return possible) That way they were never forced to invest all their money at a low rate. They never got the highs either, but they were satisfied with a guaranteed average return. and the preserved liquidity, They were never more than a year from 10% of their money
 
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