CDs vs. Online Savings Account

[stan23]

I'm looking up 5 year CD rates and they're showing to be 2.1% at the highest ( https://www.nerdwallet.com/rates/cds/best-cd-rates/ ).

Lowest mortgage rate in past few years is roughly 3.66% ( http://www.freddiemac.com/pmms/pmms30.htm ).

I'm no mathematician but I'm not seeing how you come out ahead putting $ into CD when you're paying off more of your mortgage + other debts.

Perhaps you are avoiding the pay off mortgage option because you're afraid of another R/E market drop turning your mortgage upside down ?

This was my thinking. Also with a student loan still in loom. I'd get rid of that first.

 

[phocup]

In case this is still on your mind. A friend just told me about BCU's checking account.

There's some rules about direct deposits / ect but it does promise IMO a pretty sweet return.

PowerPlus™ Checking
[..]

You'll get:

2.00% APY on balances up to $25,000 and 0.25% APY on balances over $25,000
Up to $10 per month in cash reimbursement of non-BCU ATM fees2
No minimum balance requirement or monthly maintenance fees

Qualify with:

Monthly deposits of at least $500 made via Direct Deposit or Deposit Anywhere
15 qualifying transactions per month: debit or credit card purchases, Online Bill Pay or ACH payments
Enrollment in Online Statements

 

[JesasaurusRex]

In case this is still on your mind. A friend just told me about BCU's checking account.

There's some rules about direct deposits / ect but it does promise IMO a pretty sweet return.

problem is they change rates as soon as you open an act. i opened a cap 1 savings when they were offering 1.49 or 1.99. 6 months later it was getting as much as every other bank except no debit card/checks/ took 2 weeks to have my funds transfered back to my usaa acct.

i highly recommend you save yourself the trouble op.