I’ve quite a bit of money sitting in my savings account laying eggs. I’d rather they lay interest and so plan to make them CDs. With a high possibility of an interest cut, what do you think would be an ideal CD term? Too short may result in low interest rates when the CD matures due to fed cut, while too long not only is a longer commitment but also will miss out on future raises. Besides the yield differences between one and five is not much.
Wealthfront pays 2.5 with one million dollar insurance.
Seems like OP want a guaranteed return without risk even to the degree of rate cut. Saving account is your best bet then.
NFCU is 3.1%
This is a lot of thinking going on for a marginal 0.25% decrease in rates. On $100k this is $250 for an entire year. And no, @uYVG45, while mortgage rates have fallen, Fed funds rates (which govern CDs, savings etc) haven’t.
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Make sure to check Ally Bank 2.20% and Wealthfront 2.51% saving accounts. They beat most CD rates and it’s just a saving account lol Think Ally Bank 12month cd is 2.60%
Yes but the rates will change with fed rate cuts. So you don’t get to hold on to the high interest rates
Your saving account isn’t supposed to make you money. It’s supposed to just be sitting there for a rainy day. Your actual investment money is not in a savings account and/or cds.