Comments on: Cashing in Our CDs (or Not) http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/ personal finance tips, tricks, and commentary Sun, 22 Nov 2009 03:39:46 -0500 http://wordpress.org/?v=abc hourly 1 By: nickel http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/comment-page-1/#comment-28566 nickel Sat, 14 Oct 2006 22:44:05 +0000 http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/#comment-28566 Taxes... That's a good point. I would guess (but am not sure) that the six month interest penalty would effectively remove those interest dollars from your tax return. This would narrow the gap for sure, but I don't think it would be enough to make breaking the CDs worthwhile in this case. And as Frugal Frugalson pointed out, we were so far ahead of the curve early in the game that we're ahead of the game even if we end up lagging current yields by a small amount from here on out. Taxes… That’s a good point. I would guess (but am not sure) that the six month interest penalty would effectively remove those interest dollars from your tax return. This would narrow the gap for sure, but I don’t think it would be enough to make breaking the CDs worthwhile in this case. And as Frugal Frugalson pointed out, we were so far ahead of the curve early in the game that we’re ahead of the game even if we end up lagging current yields by a small amount from here on out.

]]> By: Hypersion http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/comment-page-1/#comment-28556 Hypersion Sat, 14 Oct 2006 18:23:35 +0000 http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/#comment-28556 Taxes? Can you write off the 6 month interest penalty on your taxes or not? It could make a huge difference in the equation. Taxes?

Can you write off the 6 month interest penalty on your taxes or not?

It could make a huge difference in the equation.

]]> By: Frugal Frugalson http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/comment-page-1/#comment-28548 Frugal Frugalson Sat, 14 Oct 2006 14:04:42 +0000 http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/#comment-28548 Although Penfed will probably have an attractive offer for their "annual CD special" in January, I think we've already seen the peak for CD rates. Let's face it, 5.25% APY isn't a bad rate today and it was an excellent deal in January 2004. Considering that an Ing Direct savings account had a 2% APY at the time, I say that you're ahead of the game! Although Penfed will probably have an attractive offer for their “annual CD special” in January, I think we’ve already seen the peak for CD rates.

Let’s face it, 5.25% APY isn’t a bad rate today and it was an excellent deal in January 2004. Considering that an Ing Direct savings account had a 2% APY at the time, I say that you’re ahead of the game!

]]> By: Blaine Moore http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/comment-page-1/#comment-28478 Blaine Moore Fri, 13 Oct 2006 18:39:09 +0000 http://www.fivecentnickel.com/2006/10/13/cashing-in-our-cds-or-not/#comment-28478 I do not expect to see interest rates spike again in the near future; my guess is that rates start dropping again in the near future. I do not expect to see interest rates spike again in the near future; my guess is that rates start dropping again in the near future.

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