Certificates of deposit

Do you have money sitting in around in a bank account or money market fund. It isn't earning very much is it? Are you concerned about putting your money in a CD because of potential penalties for early withdraw? I had the same fear as well until I found out that the interest penalty for early withdraw is only 90 days interest.

For example: I was earning .6% interest in my money market and I decided to put some of the money into a 5 year CD. The CD was paying 4% per year. So even if I kept the money in for only a year I would have earn 3% on the money, 4% interest with a 1% penalty for the early withdraw.

So after finding this out I realized that there really wasn't any penalty for me to put most of the non checking account money in a CD for savings for the future vs. the money market.