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More Interest

January 9th, 2019 at 10:17 am

Thanks to BAWW commenting on my last post, I am now aware of a new CD at Navy Federal Credit Union paying 3.25% for 17 months. I knew there would be some good rates coming up soon!

I'm in the process of transferring money from a couple of different accounts so that we can fund this new CD. One bank will only allow $5,000 transfer per day. I need to move $13,000, so it will take THREE transfers. I'm sure a wire could have been done, but that requires a fee. I'm nearly positive this is a new thing for this bank. A little frustrating.

The most interest we are earning on some of our money is a CD that will come due in March. That CD is earning 2.25%, so this increase of 1% is significant.

8 Responses to “More Interest”

  1. livingalmostlarge Says:

    How much do you have tied up in CDs?

  2. creditcardfree Says:

    LAL, why do you call it 'tied up' in CDs? This is money we need in the next five years and need to preserve the principal. Currently only have under $12K in CDs...until I get more money moved over.

  3. Ladya70 Says:

  4. Beawealthywarrior Says:

    I'm moving funds around as well. I opened up a CD last month at PenFed but it was for 12months at 2.85% Thinking I might close it and roll funds over to NFCU. While earning as much interest as I can is important, I need to close a few accounts as well to make transfer process as easy as possible Smile

  5. livingalmostlarge Says:

    Because it's not liquid like a savings account so CDs are usually defined like bonds as tied up cash equivalents. You'll lose interest usually or pay a penalty so a lot of people do CD ladders to have constantly coming liquid. So are you doing a CD ladder?

    What penalties BWW do you get for closing CDs early?

  6. creditcardfree Says:

    "tied up" sound like a negative thing the way I was interpreting your question. Yes, I'm aware that CDs are not as liquid as cash, and I'm aware of penalties. Last I checked a NFCU the penalties are equal to some of the interest earned. If we were desperate to cash out early, it likely would be worth the penalties. I'm about to add $38K in total to CDs. Longer term CDs are not worth it right now to me in this rising environment. I may or may not put the $12K into this same CD when that one comes due. It depends if there is another better rate. But we have other cash not in CDs, so it's fine if it is all in one.

  7. Beawealthywarrior Says:

    LAL, if I close early I would just lose the dividends earned thus far for half the month. I just opened it at the beginning of Dec.

  8. rob62521 Says:

    That is good to know about the CD. We have some money in a money market we need to move to a CD. Thanks for the info!

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