With the state of the economy is it best to take your money out of CD account because of the low % rates?

Question

the cd`s are running about 2or 3 per cent and it was 4 to 5 when I opened the account should I close it and just put it in a penalty free savings?

Answer 1

You might be better off investing in an online savings account, you can have access to your money at anytime at if rates go up you can lock in a higher rate with a CD, this site has reviewed several online savings accounts, http://www.monitorbankrates.com/online-s...

Answer 2

You might take a look at inflation protected securities or the US Treasury's version of those called TIPS.

Answer 3

I think you should just leave it n the CD account, as long as you have the extra money to do so. I mean think about it, savings accounts will give you maybe about 2 or 3% back, same as your CD account is making you, but the savings account will most likely not go up any time soon...while the CD account still has more probability to soon give you a better percentage.

Answer 4

Don't take the money out early, you will lose more than you will gain by getting a higher yield savings account.  Once the terms of the CD's are up, I would shop for a higher interest rate either in a CD, Money Market fund, or a high yield bank account.  Visit http://www.bankrate.com for easy comparison shopping.