While this strategy should be continued, it is perhaps more important to examine your saving and spending habits. Develop the habit of saving, and review the saving instruments to get the highest interest. Locks in rate when interest rates are high. Requires low investment None Money Market Acct. CU Up to market rate Varies None Govt.
Some banks consider it obsolete.
Each institution now sets rate. 2 One month's interest is maximum penalty in commercial banks for certificates of 12 months or less. Three months' interest is maximum penalty in commercial banks for certificates of one year or more. 3 Prices on secondary market vary. 5 Money Market account rates depend on Treasury Bills.