Saturday, December 4, 2010

CD Update

Certificate of Deposit (CD) rates have decreased a bit since I first wrote about the Ally Bank 5-year CD and the PenFed 7-year CD. As of today, the Ally Bank 5-year CD APY is 2.40%, and the PenFed 7-year CD APY is 3.25%. The Ally 5-year CD still works well for taxable accounts, but I now prefer the PenFed 5-year CD at 2.75% APY for IRA accounts because of the smaller early withdrawal penalty (explained in more detail later).