Andrews Fed Credit Union CD opened 2/17 for 3% for 7yrs

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
dollarsaver
Posts: 311
Joined: Thu Feb 07, 2013 1:17 pm

Andrews Fed Credit Union CD opened 2/17 for 3% for 7yrs

Post by dollarsaver » Fri Sep 14, 2018 10:45 am

Hello,

I assume other Bogleheads bought the Andrews Fed Credit Union 7 yr, 3% CD in Feb. 2017. There is a 6 month penalty for early withdrawal.
Tried the deposit accounts Early Withdrawal Penalty Calculator. It doesn't take into consideration closing this CD and buying 2 yr CD for 2.90% or something like this.
I am hoping as rates rise, I can earn more money than the 3% for another 64 months.
Please help clarify this for me.

Thanks

mouses
Posts: 3819
Joined: Sat Oct 24, 2015 12:24 am

Re: Andrews Fed Credit Union CD opened 2/17 for 3% for 7yrs

Post by mouses » Fri Sep 14, 2018 2:04 pm

Why would you guarantee yourself a lower rate for the next 2 years. I am not understanding what you are doing.

dollarsaver
Posts: 311
Joined: Thu Feb 07, 2013 1:17 pm

Re: Andrews Fed Credit Union CD opened 2/17 for 3% for 7yrs

Post by dollarsaver » Fri Sep 14, 2018 5:05 pm

mouses wrote:
Fri Sep 14, 2018 2:04 pm
Why would you guarantee yourself a lower rate for the next 2 years. I am not understanding what you are doing.
Hi hoping for rising rates and if I can get almost 3% now for the next 2 years with a 2 yr CD and then get a higher rate the following 2 years. Or get 4.25% CD for 5 yrs. at Achieva Credit Union. Don't want to be locked in for 5+ years at 3% at Andrews Credit Union.

Don't know if this makes sense financially.
Last edited by dollarsaver on Sat Sep 15, 2018 7:49 pm, edited 1 time in total.

nalor511
Posts: 270
Joined: Mon Jul 27, 2015 1:00 am

Re: Andrews Fed Credit Union CD opened 2/17 for 3% for 7yrs

Post by nalor511 » Fri Sep 14, 2018 7:57 pm

dollarsaver wrote:
Fri Sep 14, 2018 5:05 pm
mouses wrote:
Fri Sep 14, 2018 2:04 pm
Why would you guarantee yourself a lower rate for the next 2 years. I am not understanding what you are doing.
Hi hoping for rising rates and if I can get almost 3% now for the next 2 years, and then get a higher rate the following 2 years. Or get 4.25% for 5 yrs. at Achieva Credit Union now and take the 6 month penalty from Andrews. Don't want to be locked in for 5+ years at 3%.

Don't know if this makes sense financially.
I don't even think it makes sense grammatically. Use the early withdrawal/CD calculator (google it), and you plug in your current CD details, then your prospective new CD details, and it will tell you exactly what to do.

UpperNwGuy
Posts: 1122
Joined: Sun Oct 08, 2017 7:16 pm

Re: Andrews Fed Credit Union CD opened 2/17 for 3% for 7yrs

Post by UpperNwGuy » Fri Sep 14, 2018 8:00 pm

This is why I never buy certificates of deposit. I invest in stocks and bonds for anything over two years, and I use Vanguard money market funds for short term savings.
Last edited by UpperNwGuy on Fri Sep 14, 2018 8:02 pm, edited 1 time in total.

Post Reply