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Do I have a problem? ;)

Valued Contributor

Re: Do I have a problem? ;)

Repo-ed - who did you open the CD with?

 

Ally does send a packet every time.  I have not found a way around that yet.   

 

Navy does sends a CD letter.

 

Start slow with the CD's.   If you can do one every payday, great.  Smiley Happy

 

It's better to do a lot of small CD's instead of one large CD.   

 

Next question?  Smiley Happy

Message 41 of 80
Valued Contributor

Re: Do I have a problem? ;)


IOBA wrote:

Repo-ed - who did you open the CD with?

 

Ally does send a packet every time.  I have not found a way around that yet.   

 

Navy does sends a CD letter.

 

Start slow with the CD's.   If you can do one every payday, great.  Smiley Happy

 

It's better to do a lot of small CD's instead of one large CD.   

 

Next question?  Smiley Happy



So far, I've just opened 3 with Ally.  I just moved my EF from BoA (.05%) to AMEX savings (.90%).  I'll let it set there, since locking it up in a CD won't gain much more in a 12month period.

 

My other question was to explain to me, if you would, about investing/dividing in 4 different parts/times?

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Message 42 of 80
Valued Contributor

Re: Do I have a problem? ;)

Repo-ed - Next step with Amex.   Open up a long term CD with them - something that will earn more than the current interest rate.  

 

The divide by four.   For example, if you had $400 sitting at Amex, in savings, you would divide that into four piles of $100 each.

 

There are two ways to do the "Divide by four" plan.

 

First way...


Take $100 and put it into a 6 month CD.

Take $100 and put it into a 12 month CD.

Take $100 and put it into an 18 month CD.

Take $100 and put it into a 24 month CD.

 

You have successfully laddered your CD's.  Smiley Happy   You will have CD's maturing every 6 months.  Smiley Happy   Roll 'em over.

 

Second way...

 

Take $100 and put it into a 1 yr CD this week.

Take $100 and put it into a 1 yr CD next week, or in two weeks, or in a month.

Take $100 and put it into a 1 yr CD next week, or in two weeks, or in a month.

Take $100 and put it into a 1 yr CD next week, or in two weeks, or in a month.

Just be consistent with the time in between the CD's.

 

You have successfully laddered your CD's.  Smiley Happy  You will have CD's maturing on a regular basis.

 

It sounds like you are buying a new CD every paycheck??   That's a great way to ladder your CD's too.   

 

The divide by four plan works great for someone with a lump sum of money.  IMO, it's better not to put all of your money into one huge CD.   Better to ladder them and have them mature on a regular basis.


Message 43 of 80
Valued Contributor

Re: Do I have a problem? ;)

I moved a large sum of my EF out of my BoA savings and into the Amex. I'm waiting to verify the account, before they actually draft the funds.  I think I will use my USAA funds to open the bi-weekly $100 CD and then use the AMEX savings to open up large(r) CDs in the 4-step process as you mentioned.

 

Exciting!

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Message 44 of 80
Contributor

Re: Do I have a problem? ;)

USAA minimum for CD is $250 on variable rate, and $1000 on fixed rate.

 

 

 

I wish it was $100, but alas, it's not.

Message 45 of 80
Valued Contributor

Re: Do I have a problem? ;)


Linuss wrote:

USAA minimum for CD is $250 on variable rate, and $1000 on fixed rate.

 

 

 

I wish it was $100, but alas, it's not.


Exactly why I went with Ally for my CDs. Linked my USAA acct to my Ally acct and transfer between the two. 

 

You should give it a try!

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Message 46 of 80
Valued Contributor

Re: Do I have a problem? ;)

Linuss - I know.   It took a bit to save up that money for the kids' CD's and my first CD with USAA.   BUT if you can save up enough to open one with them, that'd be great for future use.

 

Why not open up an Ally bank account?  Or a Navy bank account?  

 

Ally lets you open a CD with any amount.   You can  link your Ally account to your USAA account and transfer funds on a regular basis so you can fund CD's every two weeks.

 

Navy has two great options.  The first one is a minimum $50 to open and has terms attached to it.  It's a great CD but the majority of people will not qualify for it.

 

The other option is a $100 minimum to open AND you can add whatever you want to it, whenever you want.  I have added as little as 3 cents at one time.

 

Amex has a great option too.  Open any CD for any amount of money.  You can't add to it, but still, if you find an extra $50, open up the CD, long term.  Let the rest sit in savings, earning interest until you have saved up another $50.  Smiley Happy

 

I open an Ally once a month, $100, 4 yr term, with the option to bump my interest rate twice.

 

I open a Navy CD every two weeks, $100, 1 yr term.

 

I haven't done anything specific with Amex yet, although I do have 2 CD's with them on, I think, a 36 month term.  Maybe I should make a goal to do one a month with them....

 

Does anyone else have any Navy CD's?

 


Message 47 of 80
Valued Contributor

Re: Do I have a problem? ;)

Opened that NFCU Smiley Very Happy

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Message 48 of 80
Valued Contributor

Re: Do I have a problem? ;)


Repo-ed wrote:

Opened that NFCU Smiley Very Happy


 

No, no I didn't.

 

Was declined app as I am no longer active duty.  ugg. 

 

Oh well, I do respect their model.  Kinda wish USAA had remained as such.

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Message 49 of 80
Valued Contributor

Re: Do I have a problem? ;)

Repo-ed - I am sorry.   I keep sending suggestions to USAA about the CD model.   I don't know if I had any influence (or not) with USAA  providing the new (a few yrs ago) low CD (open with $250 and add to it).  I kept suggesting a CD product that the kids could reach/acheive and that I could more easily acheive.  I had also said it would be great if we could add to it.

 

Keep suggesting the Navy CD model with others.  Or heck, suggest it to Ally and see if they will open the door to letting us make additional deposits on the CD's.   But meanwhile, Ally rocks with their CD program!

Message 50 of 80