Articles
Selected category: CDs
What to Look for in A Certificate of Deposit
Before you even consider any CD (as with any savings account) be sure that you are dealing with an FDIC-insured bank - In order to secure the viability of the US banking system, the Federal Deposit Insurance Corporation (FDIC), an... Read →
I. CD Basics
1. What are Certificates of Deposit (CDs)?
2. What are advantages of certificates of deposit compared to a savings account?
3. How do CDs function and how can I take advantage of them?
4. To what extent is a... Read →
Brokerage Certificates of Deposit
Although most people think that you can only buy CDs from a bank, brokerages also sell CDs and they may offer you some advantages.
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Certificate of Deposit Laddering
CD laddering is a way to dollar cost average your CD portfolio to smooth and hopefully maximize your CD return over a period of years. It isn't right for every investor or in every interest rate environment, but it is a strategy worth understanding and considering.
Read →The short answer: no.
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3 Simple Reasons to Never Ever Buy a Brokered Certificate of Deposit
On and off from February to May of 2023, US financial markets witnessed something that they ordinarily do not experience. We saw 1-year and 18-month brokered CDs rise to levels that were competitive with 1-year or 18-month online CDs, as... Read →
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A Variable Rate or Indexed Rate CD is an Absurd Product for Depositors
We field a lot of questions from readers about "variable CDs", "flexible rate CDs" or "indexed CDs". It seems that several banks and credit unions have been heavily promoting these products, and we... Read →
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Buying Brokered CDs from Banks on the Brink Seems Like a Bad Strategy
Those owning full-service brokerage accounts at institutions like Morgan Stanley have probably received calls this week from their brokers. In addition to calming you down about the crisis around the banks, many of these brokers’... Read →
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Avoiding Early Withdrawal Fees on CDs by Withdrawing Only Accrued Interest
Like many people who realized 3 or 4 years ago that interest rates were not going to go up at the time, I locked some money into 5-year CDs back then. These CDs are now within a year or two of maturity. The early withdrawal... Read →
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How to Avoid Early Withdrawal Fees on A CD
As interest rates have begun to rise, some BestCashCow readers have asked about ways that they can get out of paying early withdrawal fees on long-term Certificates of Deposit that they may have bought a couple of years ago, but that... Read →
Some Dreadful Advice About Short-Term CDs
Forbes, the financial magazine that had been deceived for decades into believing that Donald Trump was a billionaire, is running an interesting advertisement on LinkedIn, Twitter and Facebook. They are encouraging social-media users to... Read →
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Mid-2022 is Just Not the Time to Buy Certificates of Deposit
My inbox is full of two types of emails from readers of BestCashCow and RatesAndInfo.com, a BestCashCow subsidiary. The first is from those who are excited to have found a great CD rate, and the second is from those who are inquiring... Read →
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Certificates of Deposit Are Now More Attractive than US Treasurys Across All Maturities for All Tax Brackets
Interest rate moves over the last 23 months have been so pronounced that most banks - including online banks - have struggled to offer their customers certificate of deposit rates that compete with what those same customers can get in US... Read →
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You Have Not Missed Your Chance to Lock in Long-Term Cash At Higher Rates
US Treasury rates came down dramatically last week, with the 1-year falling from 5.32% to as low as 5.01%, with still more pronounced declines along the longer end of the curve (the 10-year, for example, crashed from 4.55% to... Read →
Image Courtesy: ABC News
