Some Thoughts About CDs
Bank CDs are much better than money market funds right now and not as risky as bond funds. One year, federally insured CDs now yield better than 2.98% on average, with some banks paying as much as 4.52%. High short-term yields result from Fed rate hikes, with another rate hike expected on November 1st.
In a rising rate environment, the best advice usually is to stay in the shortest-term investments: money market funds and Treasury bills. However, one-year CDs now give you close to a one-percentage-point pickup above money market rates without locking you in for a long time.
NOTE: one good place to go in order to check out available CD rates is BankRate.com which you can find in our listing of Links.
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In a rising rate environment, the best advice usually is to stay in the shortest-term investments: money market funds and Treasury bills. However, one-year CDs now give you close to a one-percentage-point pickup above money market rates without locking you in for a long time.
NOTE: one good place to go in order to check out available CD rates is BankRate.com which you can find in our listing of Links.
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posted by Bob Moser at
4:41 PM
1 Comments:
I have been using this bank for checking for the past few years and its great. Near CD rates on checking.
Currently 4% yield on checking.
http://www.presidential.com/
By
erik, at 11:42 PM
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