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Financial Goals

A Broken “Investment”

I received an email from my bank this morning.  The subject line was “Make Your Money Work Harder.”

Articles by Mary

By Mary Biggins
  |  Published: June 1, 2011

The email introduced a new product – a “Breakable” Certificate of Deposit.  With this product, you can put your money in a Certificate of Deposit and receive one penalty free withdrawal for the term of the deposit.

I must admit, prior to learning about Betterment, I was a champion Certificate-of-Deposit-saver.  Back then (i.e. 3 months ago!), CDs were an easy way to “invest” my money.  Now, I can’t wait for these CDs to be up so that I can put that money in my Betterment account!

Still intrigued by the email, I clicked through to learn more. The fine print:

  • Minimum Balance to Open: $10,000
  • Annual Percentage Yield: 0.25%

So, if I put $10,000 into a Breakable Certificate of Deposit, I would see a return of $25 for 1 year.  That doesn’t really sound like my money is “working” very hard for me.

Seems like this “Breakable” Certificate of Deposit is … Broken!

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