I know this is slightly OT, but I have been told that I should put $2500 I just got into a 7-30 day CD, then pay off a credit card just before the statement closes to avoid that interest. How do they figure the interest on short-term CDs? Anyone deal with this before? Is it worth the effort at all? Thanks! Steph
You'll only make about $1 in interest. I think it's easier just to put it in a savings. If you have time you can open an Orange account at INGDirect.com. They pay about 2% with no minimum. It takes about 7-10 days to open a new account because it's all electronic and they have to run tests to make sure your bank is compatible.
I have an ING savings acct, too. Currently they're paying 2.18% (2.2% APR). This is far higher than any 3 mo -1 yr CD and most 2 yr CDs. You can open an acct for a little as $25 - maybe less. www.ingDirect.com
