I cashed in my certificates of deposit yesterday. My bank failed, was taken over by another bank and reset my c.d. rates from 4% and 2.75% to 1%
I was able to get almost 2% at another bank, so I was able to redeemed the c.d.'s without any penalty.
That has cut my interest income in half. I was hoping that someday I could live on the interest, but not with these rates.
My electric bil came and was much lower than my budget , so I am adding what was left in that envelope to the challenge money.
Prev. total $3096.00
today 100.00
new total $3196.00
Cashed in my c.d.'s
February 24th, 2010 at 10:32 pm
February 24th, 2010 at 11:19 pm 1267053581
February 25th, 2010 at 01:58 pm 1267106291
For instance, the most recent data available shows that inflation in January 2010 was 2.6%. So you're actually losing money in that CD.
If you could invest a portion of your assets in a stock mutual fund, you might do a little better. For instance, my T. Rowe Price Equity Index 500 fund, which mirrors the S&P 500, returned 32.92% in the last 12 months ending January 31, 2010.
February 25th, 2010 at 03:29 pm 1267111766