carkenord[at]juno.com wrote:
- quote -

This isn't a direct answer to your question, but something you can
consider. If you're looking at CDs through your local bank, they're
probably very low. For example, Bank of America's 1-yr CD is 1.80%. You
can open up a savings account at an online bank for higher than that.
For example, ING Direct is at 2.35% right now. And you aren't locked in
for a year with the online savings account.

Lee Carkenord wrote:

- quote -

It is common advice, but I would not give it much weight. You are
usually not rewarded in the financial markets for acting on public
information. The 1-year CD should have the effect of rising short-term
rates priced in. I suggest that you match the CD maturity to your
investment time horizon.

Rates on Certificates of Deposit are slowly rising...real slowly.

I am going to put some money into a CD, but am faced with some
confusion and uncertainty. I've GOOGLED around, but have not been able
to clear my confusion.

I know that the common offered advice is to buy short term CD's when
rates are rising.

What I don't know is how to compare the various time periods til
maturity versus the rate being paid.

Is there a commonly accepted rule of thumb to help one decide if it's
better, in todays rising rate atmosphere, to buy a 3 month CD, then at
maturity another 3 month CD, then another, etc......or better maybe to
buy a 6 month CD, then at maturity another 6 month CD.........How can I
determine if the above examples might be better or worse than buying a
12 month or 24 month CD?

Lee Carkenord