Before we bought our rental property, I had planned on building a CD ladder with our emergency fund. But then we ended up using all that money for the down payment for the property. Now that we are building our savings up some again, I am contemplating the CD Ladder.
So far, I am leaning towards using Ally for this. I like there website. It seems really informative and easy to use. Their CD rates seem better than most and the reviews I've read are pretty good. I haven't decided how I am going to do this yet. I would like to put $500 in a 12 month cd each month for a year to start.
But the 5 year CD's have such a better return. Hmmmm... I'll have to do some more thinking on this.
I have decided to take the $1229 in cash that is sitting in my sharebuilder account and depositing it into a cd. The money has been sitting to be re-invested for a while now. I don't touch that money anyways. The APY for a 5 year cd with ally is 2%. Estimated Earnings for the 5 years is $129. It's better than having the money just sit in a savings account or my sharebuilder account.