If you are afraid of inflation, you might wish to investigate Bump-Up CDs.For example, Cardinal Bank (www.cardinalbank.com) has a single bump-up CD of 3.2% APY for 32 months. That is if at any time the rate rises during the 32 months and you want to bump up to the new rate, you can do it.Another is Independence Federal Savings which has a double bump-up CD for 36 months. Independence, however, has some problems with the Feds. Another FSB wants to buy it out, but the main stockholder of Independence doesn't want to sell. The deposits are Federally insured so you will get your money back it they go belly up, but I'm told it can take more than a year.Back when Ronnie Reagan deregulated the Savings and Loan Industry, I had money in several Savings and Loans that were taken over by the Feds (one was taken over twice!) and eventually sold to other institutions. (Ronnie wasn't the unmitigated success we hear of these days in his obituaries, but what the heck. Actually, I figured out at one time that the S&L fiasco cost my wife and me $2,000 a piece in Federal losses on the sale of the takeovers, but at least we got the disaster out of the way, unlike what the Japanese government refused to do.) I never had to wait for my money. One takeover bank, however, called a CD (which they have the right to do) and wanted to give me a lower rate so I said I had the right to take my money instead, and they offered me a 7 year CD at 7% instead. I took it and as things turned out, this was a good deal. Too bad it wasn't 15 years (the maximum that I know of for CDs).brucedoe
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