CD just matured

[pistitaWA]

I have a dilemma. I need to do something with my cd money. The rates are much lower than last time obviously. Should I put it into a 3 or 6 month and see if it goes up? Or will it continue to go down? Wouldn't you think that with all the bailout money you could get a decent rate? Not! Feel free to sound off on what you would do with this money. It's not much but it does reach five figures.

[sweeps]

It's hard to imagine that rates will go much lower than this.

Perhaps you should put the money in a high-yield savings account (paying 3% or so) until rates start going up. If you really like CDs, you could put the money back in a CD at that time.

[kork13]

CD rates tend to roughly follow the trends of the federal reserve rate... Since it's currently floating between 0% and .25%, I don't expect that CDs will be going down too much... As my CD's are maturing, I'm going to hold onto the cash in my HYSA (as recommended by sweeps) until rates get back up. If I were to carry-over my CD's right now, I'd be getting at least .5% LESS on them than I will in my savings account (which is lower in itself than other options, since it's ING)

[grand_canyon]

I'm facing the same dilemma and I'm doing what the other poster suggested. I opened a couple savings accounts I found on this forum that pay 3% + and I'll just ride out the storm until the rates go back up. I don't see how they'll go any lower. I see 3% as a gift in this environment.

[scfr]

I've been going for MMAs where the rate is locked for a few months. Rates on those are at least as good as short-term CDs and it gives me the flexibility of pulling my cash out if a good rate on a CD comes along.

Whether that's the right thing to do remains to be seen of course. In a month, if rates continue to fall, I may feel like banging my head against a brick wall.

[pistitaWA]

By the way, how often can a bank change an interest rate on a high yield savings account or any interest bearing account?

[kork13]

By the way, how often can a bank change an interest rate on a high yield savings account or any interest bearing account?

Generally, however often they like. Most customer agreements state that interest rates are variable and are subject to change at any time.

[pistitaWA]

Thanks to all

Thanks to all who replied to my posts. I did transfer my CD to my banks savings account and now will at least temporarily put it into a high yield savings account at 3.50%. I guess then wait out the storm and crawl out of the root cellar.

[Ima saver]

I managed to get 4% and 3.75 % on the two c.d.'s that just matured for me. I have another coming due in May. If I cannot get a good rate, I have a savings account that promises me 3.19% until the end of June, and I will put the money there.

[Goldy1]

I have money coming out of cd's at ing and the cd rates stink so bad I am letting it sit in the account til further notice.