No. of Recommendations: 2
Loki, why did you put your money into a 5.25% CD? Indy Bank has 6-month CDs yielding 5.7%. Do you think Indy Bank will fail in less than 6 months?


I got a 5-year CD. I'm not interested in short term CDs, in general, and at the moment, I think the top yielding 5-year CDs have not yet gone down with the drop in intermediate Treasury yields, so it you are laddering, which I am, that's the place to be.

Also, I'm not interested in chasing yields to the point of opening up a large number of accounts. My ome CU and Pen Fed have track records of higher than most yields on CDs.

I don't know where intermediate, or even short term, interest rates will be in a few months (or a few days). I don't expect the Fed to push rates up in the next few months, and we will probably see oil prices come down in the late fall, so inflation will look better than it really is. The idea that a falling dollar will drive longer yields up makes sense, but the world still doesn't have anywhere to put their money except lending it to indebted US Treasury and indebted Americans.
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