Archive for the ‘Countrywide’ tag
Are CD’s Worth It?
Countrywide is currently offering a 7 month, 4.1% APY Certificate of Deposit, is that worth investing in?
If you have an account at Countrywide and you don’t have to move any assets to take advantage, I think that a 7 month Certificate of Deposit offering 4.1% APY is not a bad idea. You lose very little by taking advantage of it. Even if rates do spike up within the next 7 months (the highest rate at a brand name bank is 3.75% at Washington Mutual) such that they exceed 4.1% APY (which is unlikely), you are only locked in for 7 months.
Otherwise, I’d wait.
Personally, given a choice between a 3.75% APY and flexibility or a 4.1% APY without flexibility, I’ll take the 3.75% APY every time. I prefer the flexibility but the main point here is that the difference isn’t significant enough to warrant the effort. There are also financial considerations as well because you don’t earn interest on funds that are “in transit,” which is really just the banks playing the float because money never actually moves from one bank to another.
If you have to move new funds over to Countrywide, I wouldn’t do it. If you have funds there, by all means snatch up the opportunity.