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When it comes to CDs, you have options. Certificates of deposit come in different maturities ranging on average from one to five years, although some offer shorter and longer terms. Rule of thumb: The longer your money is locked up in a CD, the higher the APY will be. But you do pay for that higher fixed return. Should the Federal Reserve resume raising interest rates, you could miss out on a better-paying savings vehicle. There also are penalties involved if you withdraw money from your CD early.
When it comes to CDs, you have options. Certificates of deposit come in different maturities ranging on average from one to five years, although some offer shorter and longer terms. Rule of thumb: The longer your money is locked up in a CD, the higher the APY will be. But you do pay for that higher fixed return. Should the Federal Reserve resume raising interest rates, you could miss out on a better-paying savings vehicle. There also are penalties involved if you withdraw money from your CD early.
When it comes to CDs, you have options. Certificates of deposit come in different maturities ranging on average from one to five years, although some offer shorter and longer terms. Rule of thumb: The longer your money is locked up in a CD, the higher the APY will be. But you do pay for that higher fixed return. Should the Federal Reserve resume raising interest rates, you could miss out on a better-paying savings vehicle. There also are penalties involved if you withdraw money from your CD early.
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First Published: Jun 12, 2020, 3:46am