are cd's a good idea?

No, the rate on CDs are in the 1-2% range. This doesn't even beat the long term inflation rate so you're effectively losing money by putting money there that you can't readily access for whatever the term. If you just want a temporary place to "save" money, then look into one of the high yield online savings like Capital One 360 at ~0.7% interest. At least the money is always liquid.

Your grandparents are probably remembering a time when CDs yielded 5-6%. However at this time mortgages were also likely in the 8-10% range. People don't always acknowledge the big picture when talking about "The good ole days."

Guaranteed loser for their stated duration. Slightly better than cash.

Capital One 360 (formerly ING) pays .75 percent now on savings of any amount. Their new money market account pays 1 percent on balances over $10k. Withdraw whenever you want.

You can't do much better with most CDs these days.

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Your grandparents are probably remembering a time when CDs yielded 5-6%. However at this time mortgages were also likely in the 8-10% range. People don't always acknowledge the big picture when talking about "The good ole days."

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I long for those old days because I'm hitting those "done borrowing, time to save and draw interest days." But I sure appreciated those low interest rates in recent years. My dad was always a cash guy. Bought everything - houses, cars, boats - with cash. If he didn't have the cash for it, he didn't buy it. CDs were the riskiest investments he ever made. He lived off of interest for a long time. Post-Katrina, he's had to go deep into his principal, though he has enough to last his lifetime. Back in the early 90s I tried to sell him on index funds. At the time he said it was fine for me, but he didn't have enough years left to take risks with his money. Geez - the money he'd have now if he listened to me. Those high interest rates were very kind to a guy like him though.

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that's guaranteed a 1-3% return,

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go buy a fairly safe monthly dividend payer. put stops on it. waaaay higher returns and not some risky volatile stock either. good dividend history as well. Not a huge price fluctuation. BUt if you put alot in you will get a lot in return but it isn't a buy and hold and forget about stock either. you will need to monitor it and set stops just in case.

I just went an opened a unsecured LOC with one of my banks locally. They first asked if i wanted a secured LOC which would require me taking cash out my checking account and locking up/depositing into CD's.

Told her HELL NO give me the forms to fill out for an unsecured LOC. I wasn't about to touch that crap with a ten foot pole.

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Your grandparents are probably remembering a time when CDs yielded 5-6%. However at this time mortgages were also likely in the 8-10% range. People don't always acknowledge the big picture when talking about "The good ole days."

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5-6%? Try 14%+ on a 1 year CD at some S&Ls (early 80's). And I think the first time that I got a 30 year fixed rate under 10% was around 1986 or so.

You dang young whippersnappers! But we understand your point. Also, one has to look at real interest rates, so include inflation as you look at the various rates.

21.5% prime rate under james earl carter in late 70's.

chew on that for awhile.

hell i was happy getting 4% in a money market account in late 90's. then down to 2%. That shite went the way of the dodo bird also.

CDs - Tying up your money at a rate barely over zero? Why bother?