Ally Bank No Penalty CD

Discussion of the Cash portion of the Permanent Portfolio

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drumminj
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Re: Ally Bank No Penalty CD

Post by drumminj » Thu Mar 05, 2020 9:48 am

dualstow wrote:
Thu Mar 05, 2020 9:38 am
I do wonder if anyone's chasing that 2% while it lasts, though.
I did lock in some 3% 5-year CDs around a year ago with "deep cash" with this in mind. Even broke some CDs and re-purchased at higher rate when things hit 3%.

We've discussed relative risks of CDs vs treasuries elsewhere so hope to avoid getting back into that here, but given the way things have gone it's worked out in my favor.
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sophie
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Re: Ally Bank No Penalty CD

Post by sophie » Thu Mar 05, 2020 9:48 am

You could buy a CD through Fidelity to lock in those rates. Not a bad thought! I'm thinking I'd rather keep my cash liquid though, for "dry powder". That's because so much of mine is locked up in savings bonds.
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dualstow
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Re: Ally Bank No Penalty CD

Post by dualstow » Thu Mar 05, 2020 9:49 am

Same here. I don't have a lot of savings bonds, but I do want liquidity.
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sophie
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Re: Ally Bank No Penalty CD

Post by sophie » Thu Mar 05, 2020 9:53 am

Better yet: if I get a chance to refinance the mortgage, I might also throw in my upcoming kitchen renovation and then take the cash I've saved up for it and add it to the PP. Now THAT would be dry powder!

Anyone know if the timing of the refi relative to the renovation matters?
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