This Is the Best Strategy for Opening a CD Before the End of the Year

Motley Fool11-23 23:00

KEY POINTSCD rates are likely to fall in 2025 as the Federal Reserve makes more interest rate cuts.If you're looking to open a CD in the next few weeks, consider a longer term.A 36-month CD might pay ...

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/2485200983?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2F29_dBXXg6o.width-1200.png&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-11-23 23:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2485200983","market":"fut","top_or_hot":-1,"title":"This Is the Best Strategy for Opening a CD Before the End of the Year","media":"Motley Fool","content":"<div>\n<p>KEY POINTSCD rates are likely to fall in 2025 as the Federal Reserve makes more interest rate cuts.If you're looking to open a CD in the next few weeks, consider a longer term.A 36-month CD might pay ...</p>\n\n<a href=\"https://www.fool.com/money/banks/articles/this-is-the-best-strategy-for-opening-a-cd-before-the-end-of-the-year/\">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>This Is the Best Strategy for Opening a CD Before the End of the Year</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\">\nThis Is the Best Strategy for Opening a CD Before the End of the Year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-23 23:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/money/banks/articles/this-is-the-best-strategy-for-opening-a-cd-before-the-end-of-the-year/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSCD rates are likely to fall in 2025 as the Federal Reserve makes more interest rate cuts.If you're looking to open a CD in the next few weeks, consider a longer term.A 36-month CD might pay ...</p>\n\n<a href=\"https://www.fool.com/money/banks/articles/this-is-the-best-strategy-for-opening-a-cd-before-the-end-of-the-year/\">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":"LU1201861165.SGD","symbol_name":"Natixis Harris Associates Global Equity PA SGD","start_time":0,"source_url":"https://www.fool.com/money/banks/articles/this-is-the-best-strategy-for-opening-a-cd-before-the-end-of-the-year/","article_id":"2485200983","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2F29_dBXXg6o.width-1200.png&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485200983","pubTimestamp":1732374000,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Thinking of putting money into a CD before Dec. 31? Read on to see what approach to take.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","CD":"秦淮数据","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","COF":"第一资本","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4516":"特朗普概念","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0130518102.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"R\" INC","BK4585":"ETF&股票定投概念","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","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0477156797.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"RE\" (USD) ACC","BK4116":"互联网服务与基础架构","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","BK4588":"碎股","BK4166":"消费信贷","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC"},"translate_title":"这是年底前开CD的最佳策略","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CD":1,"US7Y.BOND":0.9,"US10Y.BOND":0.9,"US12M.BOND":0.9,"US2Y.BOND":0.9,"US30Y.BOND":0.9,"COF":0.9,"US3Y.BOND":0.9,"US5Y.BOND":0.9,"US6M.BOND":0.9},"content_text":"KEY POINTSCD rates are likely to fall in 2025 as the Federal Reserve makes more interest rate cuts.If you're looking to open a CD in the next few weeks, consider a longer term.A 36-month CD might pay you more interest than a 12-month CD even if it comes with a lower rate.Earlier in the year, a lot of people were clamoring to open CDs while rates were sitting at or above 5%. But at this point, the days of 5% CDs are over.The Federal Reserve has cut interest rates twice this year -- once in September, and once earlier this month. And the reason for those rate cuts is that inflation has been slowing, which is good for consumers. Cooling inflation means you shouldn't see the cost of your gas, groceries, or utilities rise so dramatically in the coming months.But the Fed also isn't done cutting interest rates. It's expected to keep doing that in 2025. If you want to lock in a decent CD rate -- somewhere in the 4% range like many CDs are paying today -- then you'll want to get moving. It's important to shop around for a new CD to snag the best rate possible. Click here for a list of the best CD rates today to get started.Our Picks for the Best High-Yield Savings Accounts of 2024American Express® High Yield SavingsAPY4.00%                        Rate info                Circle with letter I in it.      4.00% annual percentage yield as of November 23, 2024. Terms apply.      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 23, 2024. Terms apply.      Min. to earn$0Capital One 360 Performance SavingsAPY3.90%                        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 Nov. 21, 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.                                              APY3.90%                        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 Nov. 21, 2024. Rates are subject to change at any time before or after account opening.      Min. to earn$0Western Alliance Bank High-Yield Savings PremierAPY4.46%                        Rate info                Circle with letter I in it.      The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.      Min. to earn$500 to open, $0.01 for max APYOpen Account for Western Alliance Bank High-Yield Savings PremierOn                          Western Alliance Bank's             Secure Website.                                                  Member FDIC.                                              APY4.46%                        Rate info                Circle with letter I in it.      The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.      Min. to earn$500 to open, $0.01 for max APYBut there's also a specific strategy you may want to employ if you're planning to open a CD before the end of the year. And it's one that could pay off.It pays to consider longer-term CDsDuring periods when interest rates are stable, longer-term CDs commonly come with a higher interest rate than shorter-term CDs. This is because banks reward savers for committing to longer terms.That's not the case today, though. You're likely to find a better interest rate on a 12-month CD than a 36-month CD because banks are aware of the Fed's plans to cut rates in the near term. You might assume that your best bet today is to open a 12-month CD and snag the highest possible rate. But if you're saving for a goal that's a few years away, and investing your money is too risky because of your relatively short timeline, then you may be better off with a longer-term CD-- say, 36 months.You may be looking at a 4.5% interest rate on a 12-month CD today, vs. 3.75% on a 36-month CD. But with that second option, you're locking in a good rate for three full years. With a 12-month CD, you run the risk of being unable to renew at an attractive rate once your CD matures.How much a longer-term CD could benefit youLet's say you have $10,000 to put into a CD. If you open a 12-month CD at 4.5%, you're earning $450. Beyond that, it's anyone's guess. With a $10,000, 36-month CD at 3.75%, you're earning a guaranteed $1,168 because you get to keep your 3.75% rate for much longer. Meanwhile, let's say 12-month CD rates drop to 3% by the time you're ready to renew in 2025, and then to 2% the year after. In that case, you're earning $313 your second year and then $215 the year after that. That's a total of $978, which is clearly less than $1,168. Don't just chase the highest interest rateIt's easy to see why you'd be drawn to a 12-month CD today, or another relatively short-term rate that's the highest your bank is offering. But before you commit to that, consider the benefit of locking up your money a bit longer, especially if a three-year time frame or so aligns with a specific goal of yours, like buying a house or paying for college. You may find that committing to a longer term pays better overall.","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":"4.29.3","shortVersion":"4.29.3","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/2485200983"}