Opening a CD This November? 3 Big Mistakes to Avoid

Motley Fool11-11

KEY POINTSDon't jump at the first competitive rate you see.Avoid tying all of your money up in a single CD. Consider the benefits of investing instead of sticking with a CD.Although CD rates are still...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2482578671?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FWoman_on_laptop_K6Be3BQ.width-1200.jpg&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-11-11 20:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2482578671","market":"us","top_or_hot":-1,"title":"Opening a CD This November? 3 Big Mistakes to Avoid","media":"Motley Fool","content":"<div>\n<p>KEY POINTSDon't jump at the first competitive rate you see.Avoid tying all of your money up in a single CD. Consider the benefits of investing instead of sticking with a CD.Although CD rates are still...</p>\n\n<a href=\"https://www.fool.com/money/banks/articles/opening-a-cd-this-november-3-big-mistakes-to-avoid/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Opening a CD This November? 3 Big Mistakes to Avoid</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOpening a CD This November? 3 Big Mistakes to Avoid\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-11 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/money/banks/articles/opening-a-cd-this-november-3-big-mistakes-to-avoid/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSDon't jump at the first competitive rate you see.Avoid tying all of your money up in a single CD. Consider the benefits of investing instead of sticking with a CD.Although CD rates are still...</p>\n\n<a href=\"https://www.fool.com/money/banks/articles/opening-a-cd-this-november-3-big-mistakes-to-avoid/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4166","symbol_name":"消费信贷","start_time":0,"source_url":"https://www.fool.com/money/banks/articles/opening-a-cd-this-november-3-big-mistakes-to-avoid/","article_id":"2482578671","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FWoman_on_laptop_K6Be3BQ.width-1200.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482578671","pubTimestamp":1731326400,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"CD rates are still pretty high. But before you open one, think carefully about what you're doing -- and aim to avoid these big mistakes.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4166":"消费信贷","COF":"第一资本","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","BK4116":"互联网服务与基础架构","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4588":"碎股","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","CD":"秦淮数据","LU0130518102.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"R\" INC","LU1861217088.USD":"贝莱德金融科技A2","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4516":"特朗普概念","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","LU0477156797.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"RE\" (USD) ACC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","BK4585":"ETF&股票定投概念","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H"},"translate_title":"今年11月开CD？要避免的3个大错误","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CD":1,"COF":0.9,"US7Y.BOND":0.87,"US10Y.BOND":0.87,"US12M.BOND":0.87,"US2Y.BOND":0.87,"US30Y.BOND":0.87,"US3Y.BOND":0.87,"US5Y.BOND":0.87,"US6M.BOND":0.87},"content_text":"KEY POINTSDon't jump at the first competitive rate you see.Avoid tying all of your money up in a single CD. Consider the benefits of investing instead of sticking with a CD.Although CD rates are still pretty strong, they're likely to drop soon enough. In the coming months, the Federal Reserve is expected to make additional interest rate cuts. And there may come a point in 2025 when a CD no longer makes sense. Since rates are still pretty solid this November, it could be a good time to open a CD and take advantage.But you also need to think carefully before opening a CD. And if you're serious about putting money into a CD this month, you'll want to avoid these big traps. 1. Not spending enough time rate shoppingWhile the days of 5% CDs may be behind us at this point, rates are still pretty competitive this November. But that doesn't mean you should open a CD with the first bank whose rates look good to you. You may find that a bank you've never heard of has a better CD rate to offer, so it pays to dig around online and see what you come up with. Just make sure to choose a bank that's FDIC-insured, so your money is protected. You can start by checking out this list of the best CD rates we've compiled.Our Picks for the Best High-Yield Savings Accounts of 2024Capital One 360 Performance SavingsAPY4.00%                        Rate info                Circle with letter I in it.      See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Oct. 23, 2024. Rates are subject to change at any time before or after account opening.      Min. to earn$0Open Account for Capital One 360 Performance SavingsOn                          Capital One's             Secure Website.                                                  Member FDIC.                                              APY4.00%                        Rate info                Circle with letter I in it.      See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Oct. 23, 2024. Rates are subject to change at any time before or after account opening.      Min. to earn$0American Express® High Yield SavingsAPY4.00%                        Rate info                Circle with letter I in it.      4.00% annual percentage yield as of November 11, 2024      Min. to earn$0Open Account for American Express® High Yield SavingsOn                          American Express's             Secure Website.                                                  Member FDIC.                                              APY4.00%                        Rate info                Circle with letter I in it.      4.00% annual percentage yield as of November 11, 2024      Min. to earn$0CIT Platinum SavingsAPY4.70% APY for balances of $5,000 or more                        Rate info                Circle with letter I in it.      4.70% APY for balances of $5,000 or more; otherwise, 0.25% APY      Min. to earn$100 to open account, $5,000 for max APYOpen Account for CIT Platinum SavingsOn                          CIT's             Secure Website.                                                  Member FDIC.                                              APY4.70% APY for balances of $5,000 or more                        Rate info                Circle with letter I in it.      4.70% APY for balances of $5,000 or more; otherwise, 0.25% APY      Min. to earn$100 to open account, $5,000 for max APY2. Putting all of your money into a single CDThrowing a pile of money into a single CD might seem like a smart move. That way, you only have to keep one maturity date in mind, and you only have to shop for a single CD rate. But setting up a CD ladder could be a much better bet.With a CD ladder, you split your deposit into several CDs with varying maturity dates. The benefit of doing this is getting access to your money at different intervals. That could, in turn, help you avoid an early withdrawal penalty.Let's say you want to put $10,000 into a CD. You might choose a 12-month term thinking you're good to part with that money for a full year, only to run into an unplanned expense that forces you into an early withdrawal after eight months. In that situation, you're generally looking at a penalty, the amount of which will depend on your bank. But you might lose out on three months of interest, which is a pretty serious hit. So instead of putting $10,000 into one CD, you may instead want to put $2,500 into four CDs -- a 3-month CD, 6-month CD, 9-month CD, and 12-month CD. This way, a portion of your money becomes available every three months. 3. Forgetting how much more money an investment portfolio might give youYou might earn more money in a CD today than in a savings account. But if the money you're thinking about putting into a CD is for a far-off goal, like college for your kids or your own retirement, then you may want to consider investing your money instead.Over the past 50 years, the S&P 500 has rewarded long-term investors with an average annual 10% return. If you put $10,000 into a stock portfolio that pays you 10% a year over the next 30 years, you could grow that sum into almost $175,000.Even if CDs somehow pay 4% a year over the next 30 years, which is very unlikely, you're looking at about $32,400. That's a far cry from $175,000. So while a CD is a good place to put money for a near-term goal, if you don't expect to use your money for many years, open a brokerage account and invest it instead.You may be in good company if you decide you want to open a CD this November. Many people will no doubt want to capitalize on today's rates before they start to fall. But make sure to avoid these mistakes so you don't end up kicking yourself after the fact.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482578671"}