I have access to a money market that has been consistently earning 5% and keeps going up. There are NO fees or withdrawal penalties. Should I bother with any bonds or CDs while I have this?
2006-08-13 11:15:49 · 3 answers · asked by ? 3 in Business & Finance ➔ Investing
I would do this - keep half in your high yield money market and put the other half in a 6 or 9 month CD. This way if the rates go up again, your money market will fluctuate accordingly and your CD will mature soon enough to renew it at a higher rate.
2006-08-13 11:20:17 · answer #1 · answered by gene177 2 · 0⤊ 0⤋
If you feel rates are going up, keep them in the money market account until rates are higher where you can put them into a CD at a higher rate in a year or two. If you feel rates are going down, get a long maturity CD at that high rate. So you'll have say a 7% CD but current CDs would be at say 4%
2006-08-13 14:38:02 · answer #2 · answered by phaldo 2 · 0⤊ 0⤋
As long as this is a true money market fund. A few funds that offer high yields do fluctuate in price, those are more an income fund than money market fund, which should not fluctuate in price. If that's the case, you were right, there is no reason to lock in money in a CD.
2006-08-13 12:08:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋