Nija

So I started my first CD today.

a 2.15% return for 1 year.

I put in $157.15, because well, that was all the unallocated money in my Orange Savings Account.

Hopefully this will put me on the right track

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johnnymk

Wow, $3 interest in a year.

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Johnnymac

Pentagon Federal Credit Union is offering 5.25 APY for 5 year Money Market Certificates (the credit union version of a cd) I joined and opened 10 of them over the phone last week. It is the highest rate I've ever seen.

johnnymk

That's a good rate. Do you have to be a Federal Employee?

Why did you buy 5? Is there a maximum amount per CD?

Johnnymac

You don’t have to be a federal employee. Basically b/c I wasn’t in the active military and didn’t have any immediate family that was I had to join a program called "friends of the military" for 20 bucks. It’s an annual subscription but you don’t have to renew next year and you are a credit union member for life.

I bought the 5 year just for my own comfort. Imp also not sure about a maximum per cd but the minimum is 1000. the reason I spread the total amount among different certificates is that I can cash them out individually if I need the funds before they mature. You pay a 6 month interest penalty for early withdrawal, so if for some reason I need some of the money I can still have the rest earning interest.

johnnymk

Thanks, cracker. That's a good idea breaking them down into smaller quantities.

Would you have a phone number?

Johnnymac

http://www.penfed.org/prodserv/certificates/index.asp
1-800-247-5626.

johnnymk

Even though I believe that interest rates are going to take off after the elections, I am seriously going to consider these CDs. Thanks a lot.

zippyjuan

RIght now that 5% interest is a fantastic rate. Just make sure that you will not need the money for five years or you won't get that return on your money.

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johnnymk

It looks like I don't qualify for membership.