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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We use this strategy for private school tuition payments. So, the money is earning some interest, but it’s definitely going to be there, something that we couldn’t guarantee with a riskier investment strategy.   The CDs mature every year the same time the tuition payment is due. 
[/quote]

We do the same thing. What are your plans for college? Continuing to keep the tuition in a CD ladder? We did that this year because the need to decide crept up on us. I'm not sure if it's the best move going forward, however.[/quote]

I'm a different PP, but we have 3 in college and one in private school right now, and we have enough in a CD ladder to cover what the 529s won't.

Also, Ally Bank has an 11-month No Penalty CD (can w/draw after 6 days from account funding) at 2% right now. So we're laddering a couple of those w/12 mo and 18 mo CDs. As PP mentioned, in a rising interest rate environment you shouldn't lock up your money in 3-5 year CDs, especially since they're not paying much more than a 12 month one.

And thanks to the PP who brought up the T-bill ladder. I'm going to look at that today because if you're in the top tax brackets it probably makes more sense than the CDs.[/quote]

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