Less than two months ago, I locked into a 1-year CD paying 1.35%. It was the best rate at the time and I really am unlikely to need the cash for the next 12 months (now 10 months). Nonetheless, I know now that I locked in too low.
The best nationally offered one-year CD rates are now paying close to 1.50%. One-year CD rates offered by banks or credit unions in your local area or state may even be paying higher. And, Ally Bank is offering an 11-month No Penalty CD that pays 1.50% on balances over $25,000. The Ally product gives depositors a much better rate than I am receiving and the ability to break the CD without an early withdrawal penalty.
But, I am not even so sure that I should have locked into a one-year CD at all. Savings rates are moving up quickly now with plenty of national offerings at 1.30%. Again, local rates at banks and credit unions that may be available to you may be even higher.
Since I might need the cash to take advantage of the stock market crash that may come when impeachment proceedings begin in the fall, I certainly now wish I had just foregone locking into a gain over cash of what now looks at best to be just a couple of dollars.
Before getting a CD read our 65 Questions to Ask before Choosing a CD which is also available as a e-book by clicking in the right column.