
The CD is with my credit union. 7 months at 3.2%. I remember last December when the rate was 5%. I choose to stay with Paypal back then. Now Paypal is 2.3% and it isn't secure. I know I am taking a risk and if something comes up I will have to suffer the penalties. I do have back up for my emergency find since my mortgage repayment plan isn't mandatory. I could use that $1300 I have set aside for my extra mortgage payment without any penalty. I would have a problem if I lost my job in the next 6 months and I couldn't find a renter for my house. I just have to hope that won't happen.
2 comments:
You aren't doing anything wrong, but I would suggest using a CD ladder instead of a single CD. I have my emergency $$ split in two 6 month CD's staggered 3 months apart, and keep enough in savings for the smaller short notice "emergencies."
I thought about that but I got impatient and just put it all together. Maybe in 7 months I will be a bit more patient.
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