Certificates of Deposit offer great rates for your savings, but some have a catch
2024 ж. 22 Мам.
51 542 Рет қаралды
Bank certificates of deposit are paying as much as 4 and 5% now, but there are some catches you need to know about. abc7ne.ws/3O8Pm8o
#cds #bank #certificateofdeposit #finance #personalfinance #7onyourside #abc7news
Why not mention Callable vs Non-Callable too?
ask for advice
You talked about CDs but made no mention of current rates. Fail.
Find a bank with No Penalty CDs. Pays interest monthly and can pull out the money anytime. I use Ally and it’s great
Better to buy short term Treasury Notes
Yup. Outpaying ibonds and TIPS. Best to max ibonds in Oct or Nov tho to get that .9% real.
To quite to hear
Where are these "Bump Up" CDs!?? Regret not waiting for a higher IR CD and looking for on w/o a penalty for early withdrawals!
Money market, and online high yield online savings offer more flexibility.
cool
High yeild savings accounts are better
with inflation and over-printing, locking up your assets to a certificate of deposit in the current economy would be a terrible idea.
Agree! To the audience: There's so many options available online. All major banks are hardly paying anything in interest for having a savings or checking account. Take CHASE, their checking and savings accounts pay 0% - 0.01% APY interest... what a joke. Now taking a look at SoFi, customers with direct deposit can earn up to 4.40% annual percentage yield (APY) on savings balances and 0.50% APY on checking balances. Do your due diligence and research which bank suits you but don't be silly and let your money sit in an account with 0% - 0.01% APY interest.
With so much competition, bank CD is no longer a viable investment.
What in the world are you talking about? Competition is forcing them to give the best possible rates. 5.4% at a brick and mortar bank next to my house. In what universe is that not a viable investment???
Considering Joe Biden’s inflation and tax consequences, it’s a losing proposition 😢
Money market funds at major brokerages pay 4.97 percent, as of today at least, and no term. Take it out anytime you need it. If interest rates continue to go up, so will the rate they pay on your money market account. A CD will lock you into a certain rate of return for the duration of the CD and also penalize you for taking it out early. Not a very good choice. Or buy Treasury Bills that are exempt from State income tax on the interest and a one month to three month will pay slightly higher at about 5.20 percent now.
If you pay state taxes then TBills are the better option since they are except from state taxes. You also get the same govt protection plus the rates are higher than CDs.
Nearly all CD's are earning less than the inflation rate. Having been a certified financial planner I can say you only make money if your money earns over the inflation rate, and CD's now wont do that. I recommend for wealth preservation US savings bonds instead. I bonds over E bonds because I bonds offer a .5 over the inflation rate, meaning if inflation is 7.1% then you typically earn .5 over the inflation rate. You wont get rich, but, as long as the government still stands, you wont lose your money either. Wealth preservation should be rounded out with some precious metals as well from a reputable source. Its low risk/low yield but sound as part of your over all portfolio. I certainly would not place my money in CD's and watching them lose value over time.