My name is Bond

[Habsburg]

My CD is presently paying .86% and Bank of Amerika was like all proud of this, like the were the cats-meow. 

My CD that I forgot to cancel before it renewed itself is now at 1.04%

That is just what happened to me, I forgot it was maturing 6/18 and all of a sudden on July 3rd I'm like OMG!

I go in and the lady is all like, "oh it rolled over at the present rate."  I'm like, "what is the present rate"?

She leans over all proud and whispers (as if it is too good to be heard by the masses) ".86%" !!!

[Monoriu]

I really don't understand why you guys don't pay more attention to your finances, and "forget" these things.  My wife is the same.  She assumes that everything will be alright.  Even when I warn her that she needs to check her accounts on a certain date, she refuses to do it.  Mistakes and hilarity follow.

I check my accounts almost every day. 

[garbon]

I throw pennies out.

[Monoriu]

I throw pennies out.

When I was in Canada, sometimes I got US pennies.  I saved them up, because they were worth more.  I still have them with me.

[garbon]

Sounds like they've done you a lot of good.

[Admiral Yi]

I really don't understand why you guys don't pay more attention to your finances, and "forget" these things.  My wife is the same.  She assumes that everything will be alright.  Even when I warn her that she needs to check her accounts on a certain date, she refuses to do it.  Mistakes and hilarity follow.

I check my accounts almost every day.

It's not as if CD rates are going to go through the roof in a couple weeks.

[Monoriu]

It's not as if CD rates are going to go through the roof in a couple weeks.

But it should be a conscious decision to renew the CD or not. 

[Monoriu]

Sounds like they've done you a lot of good.

I'll use them next time I go to the US 

[garbon]

I'll use them next time I go to the US 

Yeah, like I said.

[Admiral Yi]

But it should be a conscious decision to renew the CD or not.

Present your argument.

[Monoriu]

But it should be a conscious decision to renew the CD or not.

Present your argument.

Failure to carefully consider your options before the CD is due may result in opportunities lost.  Letting the CD automatically renew itself means one has not taken full consideration of the options available.

[Admiral Yi]

Failure to carefully consider your options before the CD is due may result in opportunities lost.  Letting the CD automatically renew itself means one has not taken full consideration of the options available.

There are essentially two options.  You can roll it over at whatever rate, or you can park it in cash in the hopes that rates will rise enough in the short term to compensate for the lost interest on the waiting period.  But unless it's a period of high rate volatility it's very possible that the time and effort you spend to arrive at a decision will not offset the gain.

It's different for you because you *enjoy* spending time and effort saving yourself pennies.  But it's probably not a generalizable rule.

[garbon]

Failure to carefully consider your options before the CD is due may result in opportunities lost.  Letting the CD automatically renew itself means one has not taken full consideration of the options available.

You are right that I should have pulled out my money ahead of time (as it was what I'd planned to do)...however with some quick and loose math, I think I lost less than $10* when compared to my most likely other course of action. I'll be alright.

And that's assuming that interests rates don't continue to decline.

[Monoriu]

There are essentially two options.  You can roll it over at whatever rate, or you can park it in cash in the hopes that rates will rise enough in the short term to compensate for the lost interest on the waiting period.  But unless it's a period of high rate volatility it's very possible that the time and effort you spend to arrive at a decision will not offset the gain.

It's different for you because you *enjoy* spending time and effort saving yourself pennies.  But it's probably not a generalizable rule.

I think there are a lot more options available than the two you mentioned.  You can invest the money in bonds, equities, funds, foreign exchange, gold, whatever.  There is no reason not to examine the options available.  The time and effort involved maybe a few minutes, max. 

[Monoriu]

Failure to carefully consider your options before the CD is due may result in opportunities lost.  Letting the CD automatically renew itself means one has not taken full consideration of the options available.

You are right that I should have pulled out my money ahead of time (as it was what I'd planned to do)...however with some quick and loose math, I think I lost less than $10* when compared to my most likely other course of action. I'll be alright.

And that's assuming that interests rates don't continue to decline.

If you are going to do the quick and loose math anyway, might as well do it at a time when you still have a choice on what to do with the CD money, rather than after the fact