2006-07-02 07:31:12 · 4 answers · asked by Q 2 in Business & Finance ➔ Personal Finance
Does anyone have the financial equations I can use to definitively figure it out?
2006-07-02 08:04:58 · update #1
Your best bet is to do the math. What will the penalty be? What much WOULD you have earned if you kept the money in the current one. How much MORE will you recieve in the new one. Add and subtract the pertinent numbers and you will have your answer.
2006-07-02 07:36:58 · answer #1 · answered by Mark P 2 · 3⤊ 1⤋
I would wait a bit. It is only going to get higher. Then you have to decide if the penalty is worth the extra interest.
You also didn't say what the term was on the CD. If it is 6 months or less, hold it. Trust me on this one. The rates are not going back down anytime in the next two years.
-Dio
2006-07-02 07:37:17 · answer #2 · answered by diogenese19348 6 · 0⤊ 0⤋
It depends on whether the amount of the penalty is more or less than the amount of additional interest you'd earn at the higher rate, which depends on the difference between the old and new rate and the amount of time left on the CD.
For additional info, see http://banking.yahoo.com/20010820a.html
2006-07-02 07:34:42 · answer #3 · answered by AnswerLady 4 · 0⤊ 0⤋
Do the math to see if penalty is small enough to take.
2006-07-02 07:44:25 · answer #4 · answered by trcp 2 · 0⤊ 0⤋