CD Ladder Planning

What is a CD Ladder?

The concept of a CD ladder is to help you plan out your CD investments so that you can continuously invest in CDs, maximizing your earnings and still provide some flexibility to your funds as to not constantly lock it down.

I’ve been trying to set up a CD ladder for myself. Interest rates have been in their all time low nowadays, even for CDs and high yield savings, but being that I’m not much an investor myself, I’ll like to take some action to bump up my savings as minimal as it may be.

To truly master the skill of CD laddering, you want to turn your CDs as liquid as possible. The ultimate goal is to have your CDs mature one after another so some of your funds are always available. Picture this: having 60 5-year CDs maturing every month of a 5 year period! But, of course, the average person will not have the funds/time/energy to sign up for 60 CDs, so depending on how large your savings are, you can decide on the interval of maturity whether monthly, quarterly, or annually.

How I Plan My CD Ladder

1. Decide on an maturity interval. You need to consider how often you want to have Continue reading

Hello, Ally

Following to my previous post where I discussed why I ended my Chase banking, I want to go over some reasons why I chose Ally Bank.

Before we look at Ally Bank, let’s just summarize what I was looking for.

A bank that has:

  1. ATM withdrawals available near work
  2. Interest checking accounts that will grant more than the 0.01%

Why I Chose Ally Bank?

Without the option of another traditional brick & mortar bank around my workplace, my only option was to switch to the non-traditional online banks. There’s quite a few of those nowadays, ING Direct & Ally (being the more popular ones), even Discover and American Express has hopped onto the online bank wagon, with the latter two offering high yield savings accounts.

Without an debit/ATM card, Discover and American Express were not my options. It comes down to ING Direct and Ally. But Ally beats ING Direct when it comes to no ATM withdrawal fees and competitive interest checking rates.

Free ATM Withdrawals

Ally reimburses you on all domestic ATM transaction fees anywhere in the country at the end of the month. It’s a little inconvenient that they credit it at the end of the monthly cycle Continue reading