CDs Vs. Savings Account
 

So, I was thinking of opening up some CDs cause I have all this extra cash to park. But when looked into it, I found the rates to be not very competitive. The CDs (1 yr) seemed comparable with some savings account. So then, why would I bother with a CD if I could get a similar return but with better liquidity?

I guess cause the rate's locked in with the CD but honestly, I don't think rates will be going down soon (say within a year or so). Some of the CDs were 4.2 but I was thinking of opening a Savings with EmigrantDirect with a rate of 4%.

I guess .2% is fairly negligible and I get liquidity with the savings. But then agian, I don't really need liquidity.

Anyone got any ideas?

It really depends on how much you're putting into it. On $10 000, for example, that 0.2% adds up to a whole $20, not really worth worrying about. But on $50 000 it starts to add up a bit more, the 0.2% being now worth $100, all assuming simple interest. Also worth considering is that banks often only insure up to a certain amount; around here it's generally $60 000, so if it's more than that I'd have to go with an insured investment.

If you have a permanent life insurance policy -why not just park the money there until you need it? You'll have better interest rates and more control.