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Yes
It’s .4 not .04, but even on $100,000 that’s only $400 over a year.
The main question is how long is the CD. If it’s a 6 month and you aren’t going to buy for another year why not roll it over?
It’s not worth .4% if you think you’d be buying anywhere in the next 2 years. The right house could pop up and move plans forward, stay liquid.
As an update, I let the CD expire and it rolled into our HYSA — the next week we found a unicorn property we were not looking for and unexpectedly bought our first house! Was so glad our down payment wasn’t locked in the CD in the end. Thanks for the advice, all.
Subject Expert
Congratulations.
I wouldn't recommend keeping it in a CD if you're already planning to use it soon. Better to put it into your current HYSA or even opening a different HYSA with a smaller bank that offers 4% or more to ensure it's fully liquid.
Keep in mind the HYSA could and probably will continue to drop.
Subject Expert
I prefer t bills because they are state tax exempt, and no penalties.
FYI - The Marcus penalty is 90 days interest.
That depends on timing. If you're not going to use it for at least a year, there's no need to keep it accessible. In that case, roll it over. If you think something may come along and you'll want to move quickly, the HYSA makes sense.
Also consider early redemption penalties. If the early redemption penalty is only 1-2 months’ worth of interest, you could effectively treat the CD as a HYSA.
SGOV is an option for you
I invest in SGOV within my after tax brokerage account, Schwab.
Subject Expert
It's not .04%, it's .4%, and whether it's small is a matter of opinion. :)
Personally I would roll the CDs if I thought the most likely case was not using it in the next year and if the penalty for breaking the DCD was modest.
Yeah, the rate difference is tiny, so the HYSA makes more sense if you want to keep the cash flexible for a down payment or loans. No point locking it up for an extra 0.4% when your timeline isn’t fixed.
If anything, once it’s in the HYSA, you could let a portion sit there for safety and put a smaller slice to work in something more productiveq like an expert‑led copy trading system. It keeps your liquidity intact but still gives you a chance to grow the money a bit while you wait on the right property or loan timing.