Certificats of Deposit

[ultrarunner]

Mine was at 4 and matured.

New CD is 5 and max savings at 2

I told the branch manager I was not ready to lock up and would not be happy with 2 as credit union offers 4 on checking.

He asked me to wait and the said I could still have 4 and not lock up... subject to change.

The next day he confirmed I was all set.

I never got 4 and only 2

So I made the 40 mile roundtrip and he apologized saying I would need to bring new money in to get 4 when nothing was ever said about new money...

So to keep from any further misunderstandings I closed the account...

 

[grsthegreat]

Been there done that. And the banks dont care if you close accounts.
i closed my wells fargo accts after nearly 20 years with them over some stupid policies they were doing.

My current credit unions up here are offering 6 month cd at 5 % , but i think ill stick with the 18 month. This is money i have no use for right now, and i dont want to invest in stock market with it. Its more of an emergency fund. I can still pull it out at any time and only lose 3 months interest as a fine.

i have lots invested in stocks and mut funds. But i cant touch those when market is so volatile. Ill leave those alone until they get back where they were. There getting close to where they were years ago. I am glad i didnt have to pull them out when market crashed, i would have lost the rebound money.

i just dont trust adding to them. The cd’s i have ….. 8 right now, are a fall back emergency backup plan. I dont plan on living on the streets as an old man.

 

[newbury]

<snip>

So I made the 40 mile roundtrip and he apologized saying I would need to bring new money in to get 4 when nothing was ever said about new money...

So to keep from any further misunderstandings I closed the account...

How does the bank tell it is "new money"??
I would have closed the account then opened a new one with the same $.
/edit
My late MIL kept a fair amount in bank CD's, enough so when she passed away every offspring (10 total) got $10K in CD's.
I had been bugging her for years to put it in better funds but she was "loyal to the bank". The same bank that changed hands 3 times in the last 4 years, paid a minimal interest, and had a constant personnel changeover.

 

[ultrarunner]

The older I am the more I like my credit union... just wish it was closer.

I had a not so good experience with another credit union years ago so I was cautious... but 19 with the current one and it's been all good... even got 10 family members signed up plus a few friends.

The commercial bank where I have business account said they cannot complete with credit unions... nuff said.

 

[CliffordK]

If you're doing a CD, then you need to guess what the future interest rate is going to be.

I think federal interest rate hikes have hit a plateau, and likely won't go much higher. They could go down slightly, or even significantly in the future.

So, you might put some of your money in short term investments, but also try some on the range of 5 years or so.

Also watch the stock market.

If you had bought Apple stocks 5 years ago, it would have been worth about $40 a share. Today it is about $190 a share, or just under a 5x increase.

This last year or two has been rough on the stock market, but some stocks are up somewhat.

The future is hard to predict, but it would be good to get at least a proportion invested. Growth often follows downturns.

 

[ultrarunner]

If you're doing a CD, then you need to guess what the future interest rate is going to be.

I think federal interest rate hikes have hit a plateau, and likely won't go much higher. They could go down slightly, or even significantly in the future.

So, you might put some of your money in short term investments, but also try some on the range of 5 years or so.

Also watch the stock market.

If you had bought Apple stocks 5 years ago, it would have been worth about $40 a share. Today it is about $190 a share, or just under a 5x increase.

This last year or two has been rough on the stock market, but some stocks are up somewhat.

The future is hard to predict, but it would be good to get at least a proportion invested. Growth often follows downturns.

I bought $1000 of Apple in 1981.

Needed money for school and sold and made $400 and was told I got lucky because IBM and HP could take out Apple in a heartbeat... so much for conventional wisdom.

I have no Idea what it would bring today...

 

[CliffordK]

I bought $1000 of Apple in 1981.

Needed money for school and sold and made $400 and was told I got lucky because IBM and HP could take out Apple in a heartbeat... so much for conventional wisdom.

I have no Idea what it would bring today...

With a bunch of stock splits, the stock value in 1981 would be about 10¢ a share. Today it is $191.24. So, about $1,900 for every dollar invested.

I you had kept your original $1000 investment for 40+ years, it would be worth about $1.9 Million today.

Of course, it may be difficult to just buy and hold forever.

And, not all stocks have gone through such tremendous growth. Microsoft has also done reasonably well since the mid 80's.

Some companies pay dividends. Others do a combination of stock splits and buy-backs putting company money into growth rather than dividends, so it isn't a straight forward comparison between different companies.

All the tech stocks took a beating around 2000, and to some extent in 2008.

So, if you had purchased Microsoft in December 1999 at $58.75, it would have fallen to $17.06 in March 2009. It is now back up to $374.51. So, good for a long term hold investment, but rough for periods of that time.

 

[ultrarunner]

With a bunch of stock splits, the stock value in 1981 would be about 10¢ a share. Today it is $191.24. So, about $1,900 for every dollar invested.

I you had kept your original $1000 investment for 40+ years, it would be worth about $1.9 Million today.

Of course, it may be difficult to just buy and hold forever.

And, not all stocks have gone through such tremendous growth. Microsoft has also done reasonably well since the mid 80's.

Some companies pay dividends. Others do a combination of stock splits and buy-backs putting company money into growth rather than dividends, so it isn't a straight forward comparison between different companies.

All the tech stocks took a beating around 2000, and to some extent in 2008.

So, if you had purchased Microsoft in December 1999 at $58.75, it would have fallen to $17.06 in March 2009. It is now back up to $374.51. So, good for a long term hold investment, but rough for periods of that time.

You just made my day...

Never did the math...

Dad was so happy to hear I made a little to pay for my course materials...

Still have my Apple //e with original box and packaging material... maybe it's my consolation prize?

 

[grsthegreat]

Hind site is always great. But no one takes into account that when theres a hugh, huge drop, most people dump the stock. So not too many people hang onto a stock for 40 years.

i still remember the GM STOCK that i held onto because, heck, GM will always rebound.


NOT

 

[Torvy]

CDs are largely a waste of money. Maybe if you get a good deal on a short term one and just have to hold cash for a future purchase. Anything more than 90 days is much better off in the market. The average is about 10%. Open up an account with an online broker and look for muni bonds or something similar if you are risk averse.

I just pulled all of my money out of Fidelity. Anyone stupid enough to hire my SIL to manage other people's money will not be managing mine. Mostly I don't trust him to keep his nose out of my business. I found a money manager I trust implicitly.