I went on a site on this topic but can't remember the name, If I'll remember I will let you know.
If this is your emergency fund ( and or $ you will spend within the next few years ) you get 1 yr CD's at 1% (maybe 6 x $4000 - so to minimize penalty if you must cash one in.)(and start them different months - if that works). If rates go up, you get the higher rate when it rolls over. Or, put some $ in 5 yr, 3 yr, 2 yr and 1 yr.
Just compute compound interest as normal, then figure zero after tax (lol, wish I was joking - but at least your principle is safe in the bank).
Bad choice. You won't even keep up with inflation. You'll be losing money each year.
Go to http://www.treasurydirect.gov and get yourself a Inflation protected I-Bonds account. At least this way your money will stay above inflation
Best of Luck
Wish you luck finding 2.3%
Maybe in a 10 year cd. Not a 5 year.
Please state the bank that is offering this. Often there are more strings attached than obamacare.
How do CDs work? Let's say I put $25,000 in a 5 year cd with 2.3% interest, what would that equal out to? Which are the best CDs to invest in? Is it better to go long term or short term? Are Ally or Synchrony Bank good online options? I have about $25k at the moment and only getting 0.01% interest in my current savings account at my bank.
