Building up my cash balance in the Shake the Money Tree account, I have been exploring ideas on where to put that money to work in a more effective way. And reflecting back on one of my very first posts around the benefits of building a CD ladder, this is where I decided to take the next step.
So I created the 1st rung of a 12 month CD ladder for the Money Tree account. The current Ally cash account is yielding a very nice 2.10% rate, I was looking to improve the effective rate on my balances. A 12 month CD from Ally was offering 2.5% for the 12-month period, that is an improvement of 40 basis points or a 19% increase in rate. As you go up in the yield curve, you need to understand the increased risk that you have to take on, and in this case it is the lock up period for the cash for the entire time frame…I am okay with that based on how my monthly performance has been tracking.
So you will start to see a new account show up in the monthly balance sheet.
Side note: I hope everyone enjoys my basic image/graphic design skills…haha…made it from scratch…As noted in my About page, I have a knack for numbers and pretty much nothing else…Enjoy
I am a finance professional with over 20 years of experience and very passionate about all topics related to finance; enjoying the aspect of teaching and educating others along the way. All in all, I will show you how big this money tree can get over time as I get the branches (Earn, Save, Invest) as high as possible…Click here to see my financial progress to date: How high is the Money Tree?
