Search found 9436 matches

by Kevin M
Sun Jun 17, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Northern Bank Direct MM - 2.26% APY
Replies: 9
Views: 1263

Re: Northern Bank Direct MM - 2.26% APY

Be sure you can initiate transfers from another bank, the daily/monthly limits on external transfers from NBD out are $K/$25K. If you initiate the electronic transfer from your Northern Bank Direct account, there is a maximum daily limit of $5,000.00 (or the available balance in your account, which...
by Kevin M
Sun Jun 17, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Northern Bank Direct MM - 2.26% APY
Replies: 9
Views: 1263

Re: Northern Bank Direct MM - 2.26% APY

I was wondering if this account could be set up as payable on death (POD), as I want most financial assets either owned by my trust or using POD. I found this in their FAQ: Can I designate a beneficiary? Beneficiaries may not be added to the account during the account opening process. Once the accou...
by Kevin M
Sun Jun 17, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 3920

Re: Flaw in Logic? CD ladder instead of bond funds

You can buy an additional $10K/year of I Bonds at TD for your living trust using an entity account. You could make your own living trust using the NOLO press book and template, if for no other reason than to get an additional $10K/year of I Bonds. When I was buying I bonds, I was buying $20K/year--...
by Kevin M
Sun Jun 17, 2018 11:20 am
Forum: Investing - Help with Personal Investments
Topic: When to "raise my rate" (Ally bank CD)
Replies: 19
Views: 2296

Re: When to "raise my rate" (Ally bank CD)

Since it's my thread and I will hijack it if I want to, for a while now I have been wondering how I can buy CD-type fixed income investments (not bond funds) in my IRA accounts. Of course. You can hold IRA CDs at a bank (like Ally), credit union, or a brokerage. If at a brokerage, they are "brokere...
by Kevin M
Sat Jun 16, 2018 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vanguard Municipal Money Market VMSXX 1.39%

Thanks Kevin for your answer. Your 27% federal marginal rate is confusing to me. So you pay 12% in your tax bracket and in addition 15% for LT capital gains. Even if your marginal $ is from interest or wages and not LTCG? I did not realize LTCG generates a separate and additive tax to your tax brac...
by Kevin M
Sat Jun 16, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 3920

Re: Flaw in Logic? CD ladder instead of bond funds

You can buy an additional $10K/year of I Bonds at TD for your living trust using an entity account. You could make your own living trust using the NOLO press book and template, if for no other reason than to get an additional $10K/year of I Bonds. When I was buying I bonds, I was buying $20K/year--$...
by Kevin M
Sat Jun 16, 2018 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: When to "raise my rate" (Ally bank CD)
Replies: 19
Views: 2296

Re: When to "raise my rate" (Ally bank CD)

Consider breaking the CD and buying a 3-year brokered CD at 3%. According to https://www.depositaccounts.com/tools/break-cd-calculator.aspx, if you break a 2.35% CD with an EWP of 5 months of interest and invest it in a 3-year CD at 3%, you will earn about $100 more on $10K at the end of three year...
by Kevin M
Sat Jun 16, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vanguard Municipal Money Market VMSXX 1.39%

And here's a more sophisticated one at Fidelity: https://gpi.fidelity.com/ftgw/interfaces/tey/ Kevin, have you tried the Fidelity calculator compared to your spreadsheet? The Fidelity calculator used the same marginal rates, but came with a different rate when compared to CDs. I was specifically lo...
by Kevin M
Sat Jun 16, 2018 8:00 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 3920

Re: Flaw in Logic? CD ladder instead of bond funds

Do you know if there are minimum purchase requirements? And how does one go about purchasing these products? Do I open a CD directly, or is it as part of a taxable account? Also, how easy would it be to purchase similar products from Schwab/Fidelity/Vanguard? For example, I attempted doing a CD lad...
by Kevin M
Sat Jun 16, 2018 5:12 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 3920

Re: Flaw in Logic? CD ladder instead of bond funds

Many banks are and have been so flush with demand deposits (those paying nothing or very little, like checking accounts) that they haven't needed to pay anything for money markets or even CDs This! Golden. So there is so much money on the sidelines, it is hard to imagine. BofA Chase Citi WellsFargo...
by Kevin M
Sat Jun 16, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: When to "raise my rate" (Ally bank CD)
Replies: 19
Views: 2296

Re: When to "raise my rate" (Ally bank CD)

I appreciate the advice but if anyone would like to answer the actual question it would be nice. The problem is that we can't answer the question, because we don't know what higher rates Ally might offer on this CD in the future. I think #Cruncher's answer is the best anyone can do. Maybe you can s...
by Kevin M
Sat Jun 16, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vanguard Municipal Money Market VMSXX 1.39%

Out of curiosity, why is it more common to gross up tax-advantaged funds to TEY for comparability to Prime rather than comparing after tax yields? I get that this is two sides of the same coin, but I find it more grounding to think it terms of after-tax yields. Perhaps there is a psychological boos...
by Kevin M
Fri Jun 15, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: When to "raise my rate" (Ally bank CD)
Replies: 19
Views: 2296

Re: When to "raise my rate" (Ally bank CD)

I have a 4-year "raise your rate" CD that I have 1 remaining increase option on. It matures December 2021. Current APY for the CD is 2%, and I can exercise my increase option to raise it to 2.35% immediately. Should I do it now, or wait? Consider breaking the CD and buying a 3-year brokered CD at 3...
by Kevin M
Fri Jun 15, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Back to Treasurys...
Replies: 17
Views: 1937

Re: Back to Treasurys...

Since you'll be laddering into your rotation of 4 quarterly 6-month bonds, you may want to consider 3-month T-bills (currently paying 1.9%) for the funds that are waiting to be deployed. Now THAT sounds like a plan !!! These are all great ideas...I'll also look into the Treasury MM fund, but, IMHO,...
by Kevin M
Fri Jun 15, 2018 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Back to Treasurys...
Replies: 17
Views: 1937

Re: Back to Treasurys...

<snip>the MM acct. paying 1.5%.<snip> <snip>Other than that idea, I'm also looking for OTHER suggestions<snip> Switch money market funds. Vanguard Prime MM is paying 1.97%, and increasing at about 1 basis point every two days. Depending on your state tax rate, consider Vanguard Treasury Money Marke...
by Kevin M
Fri Jun 15, 2018 8:23 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 3920

Re: Flaw in Logic? CD ladder instead of bond funds

I'm not going to suggest what you should do, but I want to correct some misleading information that's been shared in this thread. Look back to the summer of 2012, when Treasury yields were even lower than today. You could have purchased a five year CD then that yielded 1.1%, which might have seemed ...
by Kevin M
Fri Jun 15, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 49
Views: 6299

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

I'm personally working on opening a money market account with Northern Bank Direct right now... 2.26% with FDIC insurance for $5K+. But I just wanted to update the particular purpose of this thread without derailing it. <snip> That's great, and it isn't derailing the thread, since the thread is abo...
by Kevin M
Fri Jun 15, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 49
Views: 6299

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

I'm thinking of breaking my 1.75% no-penalty cd and doing 3 smaller cd's to build a 6-month ladder i.e. 6 month cd at 2%, 12 month cd at 2.3% and 18 month cd at 2.35%. It's either that, or switch to the 1.8% no-penalty. I can't decide. VG Prime MM Fund has zero term risk, current SEC yield of 1.96%...
by Kevin M
Fri Jun 15, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 49
Views: 6299

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

If you don't itemize and fully deduct state taxes, for Treasuries: TEY = Y * (1-f) / (1 - f - s) Sorry, I'm confused by this. If you don't itemize, how can you deduct state taxes? Isn't that deduction only on Schedule A? Sorry, the wording seems to have been unclear--should be read as: If you don't...
by Kevin M
Fri Jun 15, 2018 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 49
Views: 6299

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

The no penalty 11-month CD appears to have been bumped 30 basis points from 1.50% to 1.80% (for $25K+). This is slightly better than the 1.75% locked in at the start of the calendar year by some people too. Fine if you want to keep a large amount of cash at Ally, but 1.8% isn't that great these day...
by Kevin M
Fri Jun 15, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Ok, let's say it's not the tax law. But why are the yields so variable? And, as someone pointed out above, why is this apparently predictable yield cycle not being arbitraged away? I don't think anyone participating in this thread has definitive answers to those questions. The yield cycle definitel...
by Kevin M
Wed Jun 13, 2018 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

The TEY calculations assume no itemized deductions, or at least that state income tax is not deductible in calculating your marginal federal tax rate. Different states tax home-state muni interest differently, depending on how much is in the fund. It looks like you are assuming all of the national ...
by Kevin M
Wed Jun 13, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

I just ran the calculations for my case and was surprised with the results. I live in a state with a high tax rate, and my highest after-tax yield would currently be with Vanguard Treasury Money Market. Interesting. I normally don't look at this fund, because the minimum investment is $50K, but I'l...
by Kevin M
Wed Jun 13, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Would you be willing to share the spreadsheet you have set up? Sure. It's a Google Sheet, and here's the link to a view-only version: https://docs.google.com/spreadsheets/d/1xYVmM-a1POETySkBTtr25Ezd8_3MzKo43G_xv-CmwG8/edit?usp=sharing. With your Google account, you can make a copy to get an editabl...
by Kevin M
Wed Jun 13, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Why is there so much fluctuation in muni money market yields? Is it just a quick of how Vanguard reports the yield, or should we actually be moving money back and forth to exploit this? It's not a quirk in how Vanguard reports yield. I've verified it directly by calculating the yield based on the c...
by Kevin M
Tue Jun 12, 2018 8:57 pm
Forum: Investing - Theory, News & General
Topic: Why is long bonds yielding less than short bonds?
Replies: 7
Views: 1063

Re: Why is long bonds yielding less than short bonds?

Funds like BND or BIV are making substantial investments in corporate bonds. With those bonds, there is a lot more risk that you won't get all of your interest payments or all of your principal back because the company goes bankrupt. As such, such bonds have a yield premium over treasuries. If you ...
by Kevin M
Tue Jun 12, 2018 6:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - You'll need to sign up for security codes soon
Replies: 41
Views: 5770

Re: Vaguard - You'll need to sign up for security codes soon

How much effort is it to become an authorized agent on another's account? This would be for both my wife and my mother (I am the joint owner on all non-qualified accounts). You need to fill out the agent authorization form , agent signs it, and owner gets notarized signature and signature of two wi...
by Kevin M
Tue Jun 12, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Muni mm went from a no brainer at 1.55% yield to 1.03% now which doesn’t make sense at my bracket. I switched to prime. I look at the extra yield as free money. Yes, but the point is that the muni MM yields seem to be cyclical, and it looks like we are at the bottom of the trough of the cycle, and ...
by Kevin M
Tue Jun 12, 2018 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

[Edited to add: Although, the muni money market yields have been the same for 4 straight trading days, so perhaps that represents a local minimum and the beginning of the next up-swing has started! lol. ] CA muni MM actually ticked up one basis point yesterday. It was 43 days from the previous peak...
by Kevin M
Tue Jun 12, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 139
Views: 13800

Re: Vangaurd Municipal Money Market VMSXX 1.39%

[Edited to add: Although, the muni money market yields have been the same for 4 straight trading days, so perhaps that represents a local minimum and the beginning of the next up-swing has started! lol. ] CA muni MM actually ticked up one basis point yesterday. It was 43 days from the previous peak...
by Kevin M
Sun Jun 10, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: If you suddenly became a millionaire [exceed FDIC insurance limit]
Replies: 31
Views: 5069

Re: If you suddenly became a millionaire [exceed FDIC insurance limit]

If you pay state income tax, it is likely that you will be better off with short-term Treasuries, like 3-month and 6-month, than in a savings account, or even in short-term CDs in a taxable account. This is because Treasuries are exempt from state income tax. For example, the expected yield on the 6...
by Kevin M
Sat Jun 09, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31183

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

I believe all brokerage accounts have been upgraded, whether you OK'd it or not. One of our accounts is the old style mutual fund account with an attached brokerage account for stocks, CDs etc. There is a sweep account in the brokerage account even though there is also a Federal MM fund in the mutu...
by Kevin M
Sat Jun 09, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31183

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

FrugalInvestor wrote:
Sat Jun 09, 2018 6:17 pm
On my screen I see the xxxx-xxxxxxxxxxx for each fund. The first 4 are the fund number and the 11 to the right of the dash the account number (one for joint, one for my IRA, etc). So it looks like I'm still on the old mutual fund platform.
Yep.

Kevin
by Kevin M
Sat Jun 09, 2018 6:27 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 103
Views: 7662

Re: US T bills - first time user

Thank you for the link. By mid-October (retirement), I'll have my day hours free! I hope you understand by now that you do not need your day hours free to buy Treasuries at auction. You also don't need day hours free to look up the yields on the TD site I provided the link to to determine the yield...
by Kevin M
Sat Jun 09, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31183

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

Those of you on the 'old' and 'new' platforms, what is the length and alphanumeric structure of your account number on your statements? On the old platform, my mutual fund account numbers are 11 digits. All funds are in one "box" online in the Balances and holdings screen, and they all show the 4-d...
by Kevin M
Sat Jun 09, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 103
Views: 7662

Re: US T bills - first time user

Thanks, Kevin. I appreciate your reply, but my problem was that this info is often ephemeral. Although I was able to do all that and make comparisons when the Treasuries were available during auction, much of this vanishes afterwards. Similar issue when the bond markets are closed, which is the onl...
by Kevin M
Sat Jun 09, 2018 2:55 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 103
Views: 7662

Re: US T bills - first time user

I see that you're right about the Tbill confirmation only showing the discount rate (I looked at one of mine). So what you can do is go to the TD site and look up the investment rate for that bill. For example, for the 3-month bill I bought maturing 6/21/2018, the discount rate on the confirmation i...
by Kevin M
Sat Jun 09, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 103
Views: 7662

Re: US T bills - first time user

A bump for a question from another first-timer involving discount rates vs YTM: DH has brokered CD's (1-3 years) and T-bills (3, 6, and 12 months) in his IRA. When the bond markets are open, I'm working. When they're closed, I can't see what's up with new issues. You can always see what's up with n...
by Kevin M
Fri Jun 08, 2018 12:10 pm
Forum: Investing - Theory, News & General
Topic: Maturing Credit Union 3% CD's this year
Replies: 34
Views: 2780

Re: Maturing Credit Union 3% CD's this year

I've been getting 2.85% or better on secondary market at Fidelity. Higher yield than the 5-year Treasury and much less term risk. New-issue 3-year CD is 3.00%, and I've been getting 3.07% or better on secondary market. Kevin, I have a Fidelity Brokerage account (taxable though). From what I can tel...
by Kevin M
Thu Jun 07, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31183

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

How do I tell from my online account or statement which type of account I have? Something changed with my Vanguard account years ago but I don't remember exactly what it was. What I do remember is that my statements changed (I think they included a brokerage account but am not positive). I called V...
by Kevin M
Thu Jun 07, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: Total Bond - SEC yield breaks 3%
Replies: 104
Views: 12614

Re: Total Bond - SEC yield breaks 3%

Based on the current status of the market, money currently in the TBM fund will yield 3% going forward. Over the course of the next ten years, this is very likely going to be the approximate annual return that you as an investor will get. Yes, if rates keep going up, the principal value of your bon...
by Kevin M
Wed Jun 06, 2018 8:19 pm
Forum: Investing - Theory, News & General
Topic: Total Bond - SEC yield breaks 3%
Replies: 104
Views: 12614

Re: Total Bond - SEC yield breaks 3%

Based on the current status of the market, money currently in the TBM fund will yield 3% going forward. Over the course of the next ten years, this is very likely going to be the approximate annual return that you as an investor will get. Yes, if rates keep going up, the principal value of your bon...
by Kevin M
Wed Jun 06, 2018 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: CD interest
Replies: 18
Views: 2019

Re: CD interest

Again, except that many texts and documents state that YTM assumes coupons are invested at the same rate as the original instrument. In these same texts a zero coupon bond is mentioned as a way to eliminate this risk entirely. I am nowhere near these books right now, but I am pretty sure Annette Th...
by Kevin M
Wed Jun 06, 2018 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Basic 30-year TIPS vs 30-Year Treasury Bond Question
Replies: 9
Views: 530

Re: Basic 30-year TIPS vs 30-Year Treasury Bond Question

Economist Gary Shilling would say 30-year Treasury is *not* bought for the interest, but for the cap gains. So if interest rates go down to 2% (which Shilling is still looking for last I heard) you would make something ~50% cap gain + interest on a T-BOND. What Shilling really does is (gulp!) buy 3...
by Kevin M
Wed Jun 06, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: CD interest
Replies: 18
Views: 2019

Re: CD interest

Isn't there more reinvestment risk with a more frequent coupon payment? No. With more frequent coupon payments, at least you can begin to earn some interest earlier. Say you just put your coupon payments in a money market fund. With monthly coupon payments, your first five coupon payments earn what...
by Kevin M
Wed Jun 06, 2018 12:41 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 216
Views: 30820

Re: 2-year CDs at Vanguard and Fidelity Today

Schwab is $1 per CD but with $10 minimum. So you have to buy $10k or more in order to get the $1 commission. Question, I see Schwab quotes being worse than Fidelity. Does Schwab include commission in the quote? How about Fidelity? From Schwab and Fidelity's CD search results screen: Capital One 140...
by Kevin M
Wed Jun 06, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: CD interest
Replies: 18
Views: 2019

Re: CD interest

I don't know how to explain this other than the fact that APY and yield to maturity are not the same thing. One simple explanation is that interest in a direct CD is (or can be) reinvested in the CD. Brokered CDs, on the other hand, pay out the interest into your sweep account. Therefore, these div...
by Kevin M
Wed Jun 06, 2018 10:44 am
Forum: Personal Finance (Not Investing)
Topic: CD interest
Replies: 18
Views: 2019

Re: CD interest

Frequency of compounding only matters if you're comparing two CD's that have the same annual RATE. A lot of CD's are advertised based on annual YIELD, which includes the compounded interest in its calculation. Two CD's with the same annual yield should give you an equivalent return, regardless of h...
by Kevin M
Tue Jun 05, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: CD interest
Replies: 18
Views: 2019

Re: CD interest

Thanks Kevin.I bought the 2 year from WF in a large amount.The 5 year is up to 3.3 but I am sticking with the 2 yr.I guess I will initially put the monthly interest in the 1.6 money fund unless you have a better idea. There is a real peak in the CD yield curve at 2-year maturity. At 2.80%, you get ...
by Kevin M
Tue Jun 05, 2018 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: CD interest
Replies: 18
Views: 2019

Re: CD interest

For fun, assuming you were able to reinvest the interest at the same 2.8% rate, we can use the FV formula to compare the future value after two years for monthly vs. semi-annual interest payments (I know you are looking at 2-year CDs, since this is the rate for new-issue 2-year CDs). On an initial i...