No. of Recommendations: 2

You wrote, I checked on that CD... Dont know that the rate justifies locking it up yet.

I think you can beat PenFed's rates by a little bit. Also, if you go with Ally, they only require 2 month's worth of interest as the penalty for any CD. That means you can opt for a 5 year CD at 2.40% APY and still break the CD after only 4 months and take away an annualized return of 1.20% APY. Put another way with a 5-year CD, you only risk 0.4% of your principal in exchange for a guaranteed 2.40% APY.

If rates rise much over this rate, you can always afford to break the CD and buy another with the proceeds.

- Joel
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