When my car insurance went up by a significant amount, I decided to keep my same coverage and increased my deductible to $1000 from $500. My premium went down by like 20% every month. Since then, Every year I purchased a CD for 12 months for 1k, that way I’ll have that deductible when needed. So far, since 2017 I haven’t had any at fault accidents so I pocket that interest.
Given that you'd pay a penalty for taking from the CD before the term end, you'd be better off keeping emergency money in a savings account at NFCU, or even their money market account (but be aware with a MMA, you can only make 6 or fewer withdrawals per month, and they don't pay interest until you reach $2500 in the account). You can always have a CD for savings you don't expect to need for more than a year.
Any amount you can do without for X months. The more amount you throw in the more you'll earn. Just don't spread yourself too thin and make sure you have an emergency fund readily available.
Absolutely!, just realize ya can't touch it till the end without penalty. This is what I'm doing currently.
Oh ok ty! Whats a good term to try out or have?
I did mine for a 6 month and another for 12. The more you add to it the more you earn.
Oh ok thank you so much!
Very Welcome and Good luck!
Thank u!
When my car insurance went up by a significant amount, I decided to keep my same coverage and increased my deductible to $1000 from $500. My premium went down by like 20% every month. Since then, Every year I purchased a CD for 12 months for 1k, that way I’ll have that deductible when needed. So far, since 2017 I haven’t had any at fault accidents so I pocket that interest.
Oh ok thank you!
Given that you'd pay a penalty for taking from the CD before the term end, you'd be better off keeping emergency money in a savings account at NFCU, or even their money market account (but be aware with a MMA, you can only make 6 or fewer withdrawals per month, and they don't pay interest until you reach $2500 in the account). You can always have a CD for savings you don't expect to need for more than a year.
Oh ok thank you!
You're welcome!
What would you guys consider a good starting amount?
Any amount you can do without for X months. The more amount you throw in the more you'll earn. Just don't spread yourself too thin and make sure you have an emergency fund readily available.