New CD Ladder and New Experiment

Posted By Paul

For those of you following the CD ladder postings that I have been writing recently, specifically:

Are CD Ladders Worth The Climb?
Recession coming? Time to lock in rates?

and

CD Ladder one year in

I thought you might find it interesting to know that I did a couple of things with my emergency fund in the hope that it would be educational to myself and other Frugalize readers.

I have one CD ladder and in the posting:

CD Ladder one year in

I estimate the amount of money that I would have made if I had I left the money in my savings account versus putting it in a CD ladder.

Well today I did three things with my savings account.

1) I created a new account and put the exact amount in it that I estimated above.
2) I started a second CD ladder.
3) I created ANOTHER new account and put the exact same amount that I put into my second ladder into this account.

So now I have two CD ladders and two savings account where each account holds the same amount that I put into the CD ladder. My plan is to periodically check in on the value of the CD ladders (where the value would include any penalties from early cash out) relative to their matching savings accounts.

The first ladder was started when the APY on my savings account was higher and the savings account rate has since fallen for the savings account. It will be interesting to see if that ends up being the case with my second ladder.

So keep reading for periodic postings on the CD Ladder vs. the savings account race.