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A good point about transit time. Actually, I am sticking with CDs, although I was involved in Treasury ladders at one time. The place where I had most of my CDs (Independence Federal Savings in Washington, D.C.) changed their philosophy on CDs and quit giving a decent yield on their three-year double bump up CDs to where the discount on yield is incredibly large. So as CDs matured, I have been switching to Pentagon Credit Union and E*Trade (E*Trade has a nice 6-mo. CD, incidentally). This was a lot of switching with careful watch of maturity dates.

Another problem having accounts in the District is that the city can confiscate your investment after three years if the account is inactive (but drawing interest) so every three years you have to order Independence to update your accounts. Just finished switching my last CD from Independence earlier this month. Incidentally, Independence never asked why I was withdrawing so much money from them. Though the aggregate sum was large in my view, I guess it was small potatoes for them.


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