Viewing a single comment thread. View all comments

polkawombat t1_j2eezp1 wrote

My experience with Ally has been great. They increased their HYSA rate 18 times this year, from 0.5% to 3.3% (like most of the banks that keep popping up here)

This is probably a good time to be looking at longer-term CD's. I keep a portion of my e-fund in a 5-year CD ladder with Ally. I started by opening 5 CD's (1, 2, 3, 4, 5 year terms) at the same time. At renewal I rolled each one into a 5-year term and add additional funds. This has smoothed out variations in interest rates. I've never needed to, but if I needed some of those funds I could do so and only pay the 3-month interest penalty on one of the CD's.

With higher interest rates it's even been worth it to break the lower interest rate CDs, pay the penalty, and buy higher rates with similar maturity dates.

4

jammun14 OP t1_j2efskc wrote

I thought about doing that rolling schedule with CDs before too, but with a different set of funds. I like the way you explained it!

3

polkawombat t1_j2eklny wrote

Yeah, when I was just starting it was just an experiment with not much money. Once I understood it better I started treating it as part of my e-fund

2