Salle Mae

I'm opening another high yield savings account at Salle Mae. Their interst rate tops ING Direct (1.4% to 1.1%) but that's not why i opened another.

I opened it for the CDs. 3% APY on a 60 month CD.

Each month as i add the budgetted amount to my emergency fund, I'll be opening a new CD for $125.00.

My goal is an emergency fund with $15,000.00. I'd like to keep half of that CASH, half in CD's. Half of $15,000.00 is $7,500.00 and if you divide that by 60 months, that's $125.00 a month.

So if i open one 60 month CD with $125.00 a month for the next 60 months my ladder will make itself slowly and expire and renew on time =)

I want to do it gradually incase I need the $$$$ suddenly (Which is why new $$$ will go towards CD's and my current EF will stay liquid).



This way I keep some money (most of it liquid) for now, and i can slowly start building some CD ladders up at good rates instead of the pitiful 1% rate i'm getting now!