Thoughts on putting money into a CD for a year or so instead of the stock market?

Minimum deposit of $1000.
Earning 2.5%, 3.10%, 3.50%, 3.70%, 4.20% for 3 months, 6 months, 9 months, 1 year, 2 years respectively.

Thanks.

Allie,

I put my cash into a savings account with Etrade. That money is earning 3.3% APY with no minimum and I can withdraw it any time. It is FDIC protected as well. Just wanted to give you an option to locking up your money.

Docmase

I firmly believe now is the time to be dumping $$ into the market. The prices are right. I have bought knowing that I would not be able to afford some of the stock in a bull market.

May be a good time until things settle down. If you don't know a lot about investing into the market it would also make CD's more appealing.

I'm putting my money in short term treasury ETFs which I can sell if it looks like the market is back in an up trend.

I think it's a good idea. It really depends on how long you want to lock up the money.

Good idea. Don't depend on the stock market for short-term gain.

I'll be the only person here to say DON'T DO IT.

Here's why, if you give them $1000 for a year, you'll get $37 dollars.
Are you kidding me? Waiting 365 days for about a dime a day?

Here's some fees that you'll easily pay in a year that are easily 10% or more:
Late fees on bills
Sales tax
Tips when eating out
Shipping & handling when you buy online

Here's how you can easily LOSE 10% by just living normal
Not shopping for the best deal on groceries
Not shopping for the best deal on electronics
Going out to see movies
Buying things from gas stations
Buying drinks, even bottled water

As you can see, if you can even save $5 a month by looking out at the above, you'll already save $60 a year. So, is it a good idea to let them hold your money ONE YEAR for only $37?

Even if you were aware of the above, you may realize cost of living has risen at least 20% on :
Gas
Food
Rent
A very dangerous myth is that CD or savings accounts can keep up with inflation (can it? Ask yourself)

CD is only for people who don't know better ways to save, invest and utilize their money. If what I say makes sense, keep your money to yourself, in a free checking account, no fees, no penalties, accessible anytime. Learn to save, by giving money to CDs and loans, you're perpetuating the problem today : LOW interest rates (which means more money supply, money worth less, costs go up). Don't settle for low interest rates, wait until they offer more.

Am I saying "I'd rather have nothing"? NO. I am saying I got better ways to save and invest my money than to let them hold it for a year for less than 5%. (Feel free to ask me details)

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