Emergency Fund options as prior CD's mature?

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WillyMcG
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Joined: Thu Dec 12, 2013 12:54 pm

Emergency Fund options as prior CD's mature?

Post by WillyMcG »

5 years ago I received helpful advice here to create an emergency fund of CD's at PenFed. Time flies, they are now maturing and I need to decide what to do. By default they will renew into new 5 year CDs into the available rate at the maturity date.

Originally I created 4 CD's of 5k each. 3 of them mature of 12/21/2018 and the last one on 1/11/2019 (must have added this one a couple weeks later).

Should I just let them renew? Currently PenFed is paying 3.30% APY on their 5 year CD. This is truly emergency fund and I have my retirement and other personal savings in good shape.
PFInterest
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Re: Emergency Fund options as prior CD's mature?

Post by PFInterest »

sure.
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RickBoglehead
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Re: Emergency Fund options as prior CD's mature?

Post by RickBoglehead »

I would not just let them renew before I checked PenFed's rates vs. others. I would also consider a rising interest rate environment, and whether it makes sense for 5 year renewals vs. a shorter term. If nothing else, I'd make a ladder of terms, perhaps 2, 3, and 5, and then simply revolve it as time goes on.
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