3% CD or 10% HVAC - Take Your Pick!

A quick check of 5 Year certificate of deposit rates at Bankrate.com(TM) http://www.bankrate.com/ shows that the current average rate is less than 3%. Compare that to investing in state-of-the-art HVAC equipment in our sample house in a Kansas City suburb - a 4-Ton home with an existing 78% furnace and a 9 SEER air conditioner. We ran the numbers on a top of the line York dual fuel heat pump with a 95+ AFUE furnace and took advantage of the $1500 tax credit, the $1700 rebate currently offered through York Liberties(TM) dealers, and the heat pump rate offered by KCPL and quickly determined the annual return on investment at more than 10%! Why compare against an existing system with such a high AFUE and SEER? To make the point that even when comparing a replacement system against existing relatively recent systems, the combined effects of the tax credits, manufacturer rebates, and energy savings yield solid returns on investment. Looking at systems with older AFUE's and SEER's makes the return on investment even better! The point is this - investors have choices - not only are HVAC returns at an all time high due to the stimulus plan tax credits and rebates, BUT the competing returns on many financial instruments are at a significant low point. Also, this investment is in your own basement, safer than money in the mattress!