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Subject:  Re: CDs Date:  2/28/2005  9:12 AM
Author:  Lokicious Number:  11946 of 36468

"I am looking at some short term CDs through my brokerage account to park some of the fixed income allocation. I have waited a few weeks to see how the offerings change, and I am now wondering whether new CDs tend to be offered by banks more in the beginning, middle, or end of the month or if it is just random?"

I have no idea how different brokerages add CD offerings to their lists.

Banks and Credit Unions don't "offer" "new" CDs, like new bond issues. You can always get a CD at whatever maturities are available at a given bank or CU.

Banks and Credit Unions do change the rates they pay on CDs on a regular basis. At my credit union, for example, posted rates are only good for a week, though in fact, rates change infrequently, and usually by no more than .1% or .15% APY.

When contemplating getting a new CD, I usually wait until Friday to see if there has been any major change in 5-year and 10-year T-bills that week, since that is usually what precipitates a change in CD rates (they don't always act, but I don't think I've ever seen them change CD rates without some meaningful change in the bond market). If bonds are trending down, I'll jump on Friday; if up, I'll wait until the next week to see how things are going; if no change, I'll go to the bank on a day I'm walking by, anyway.
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