# Money CDs, how much in each?

**URL:** <https://boards.straightdope.com/t/money-cds-how-much-in-each/403589>\
**Category:** In My Humble Opinion\
**Created:** [May 10, 2007, 8:27pm UTC](https://boards.straightdope.com/t/money-cds-how-much-in-each/403589 "2007-05-10T20:27:02Z")\
**Posts on this page:** 2\
**Page:** 2

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**Author:** ![Kalhoun](https://avatars.discourse-cdn.com/v4/letter/k/3bc359/32.png) [@Kalhoun](https://boards.straightdope.com/u/Kalhoun)\
**Post date:** [May 12, 2007, 3:43pm UTC](https://boards.straightdope.com/t/money-cds-how-much-in-each/403589/21 "2007-05-12T15:43:44Z")

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[QUOTE=friedo]

These days, you can get 5% on fully liquid savings accounts, too.

As for CDs, I personally don’t like anything less than a year. If you need the money back that quickly, you might as well have it in a liquid account with a decent interest rate. A good strategy is a [CD Ladder](http://www.bankrate.com/brm/news/sav/20010521b.asp) with an equal amount in each tier.  
[/QUOTE]

I’ve got both a 5% savings and a 5.6% CD (13 months). Both are absolutely safe. Aren’t bonds a good bet these days, too?

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**Author:** ![Canadjun](https://avatars.discourse-cdn.com/v4/letter/c/76d3ee/32.png) [@Canadjun](https://boards.straightdope.com/u/Canadjun)\
**Post date:** [May 12, 2007, 4:06pm UTC](https://boards.straightdope.com/t/money-cds-how-much-in-each/403589/22 "2007-05-12T16:06:58Z")

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[QUOTE=LSLGuy]

There is no advantage to buying a 3 year CD when a 1 year CD pays the same rate. And as between 4.87% and 4.88%, the yield difference is $1 per year per $10,000 invested. Not material.  
[/QUOTE]

It depends on which direction you think interest rates are going to go. If you think they will go down then you may want to buy the 3 year CD and lock in that interest rate for 3 years. If you think they will go up or stay the same you would want the 1 year CD.

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