2012 IRA Contributions: Not Too Late

This is a reminder that you have until April 15 to make your IRA contributions for 2012. This could result in a lower 2012 tax bill if you make a deductible  contribution to a traditional IRA (TIRA), or lower future taxes if you make a contribution to a Roth IRA (Roth). While you're at it, go ahead and make your 2013 IRA contributions if you have the money. The rest of this post summarizes your options and my thoughts on what makes the most sense.

I Bought a Barclays 5-Year CD

I just opened an account at Barclays online bank, and bought a 5-year CD, which currently is one of the best CDs available nationally. It earns 1.85% APY with an early withdrawal penalty (EWP) of 90 days of interest. This makes it a better deal than Ally Bank's 5-year CD which currently earns about 1.6% APY with an EWP of 60 days of interest, or PenFed's 5-year CD earning 1.65% APY or their 7-year CD earning 1.75%, both with an EWP of 365 days of interest.