I am looking at one of the "internet banks" and they have CDs for 1 year at 1% and 5 years at 2%. The early withdrawal fee for 5 year CD is 150 days of interest. Doesn't it mean that 300 days the CD's break even? In other words if I cancel my CD after at 300 days I'd pay 2% of interest I got in the last 150 days which would be the same as getting 1% for 300 days?
In that case wouldn't one always prefer to buy 5 year CD with current rates if you plan to keep it there at least 1 year?