Certificate of Depost-how to get the highest effective yield!

How is the ordinary person going to get the best yields on CD or Certificates at Credit Unions without locking up all your funds virtually forever ? Answer: Climbing the Ladder First- decide when you are going to need some of your money, for example-I will need One-Tenth of my money in 6 months. Take One-Tenth of your money and buy a 6 month CD. Take the next tenth of your money and buy a One Year CD, then another CD for 18 months,then another tenth for 24 months and so on until you use up all the investable funds. The 6 month rate is terrible but the 12 month rate is better as will the longer dated CDs and the longest rate will be the best of all.

You will have continuously maturing money, in this case, every 6 months for one-thenth, as far as you have stretched out the maturities AND have the highest possible rate with NO RISK.

Your bank or credit union may even set it up for you or you can do it at different institutions.

One point to look at is to find an institution or different institutions where the rates at higher for longer terms. Don't pick a 5 year rate that is the same as the one year rate.

In a worse case, where you can borrow against the CD or take an interest penalty and withdraw the funds, if the institution allows it. And that would be the worst case.

This is a simple, foolproof way to obtain the highest rate with complete safety.