If you do the math, if you take the 5 year and surrender at 3 years the effective earnings are at least as high as the rate Pen Fed offers for a 3 year CD. Very good point! The five year CD does appear to be the wisest choice. I don't see rates sinking again any time soon, so seven years is unnecessary. Nor do I see rates going up rapidly, though credit unions like Penfed will gradually raise CD rates. Five years appears the ideal compromise.
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