Need to Take an RMD by Year's End? These CDs Are Smart, Safe Places to Funnel the Money

Investopedia11-23

Key Takeaways If you're in the required minimum distribution (RMD) stage of a retirement account, you need to withdraw your 2024 RMD by Dec. 31. But if you don't need that money right now, it's smart...

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These CDs Are Smart, Safe Places to Funnel the Money","media":"Investopedia","content":"<div>\n<p>Key Takeaways\n\nIf you're in the required minimum distribution (RMD) stage of a retirement account, you need to withdraw your 2024 RMD by Dec. 31.\nBut if you don't need that money right now, it's smart...</p>\n\n<a href=\"https://www.investopedia.com/need-to-take-an-rmd-by-years-end-these-cds-are-smart-safe-places-to-funnel-the-money-8750060\">Source Link</a>\n\n</div>\n","source":"investopedia_highlight","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>Need to Take an RMD by Year's End? These CDs Are Smart, Safe Places to Funnel the Money</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\">\nNeed to Take an RMD by Year's End? These CDs Are Smart, Safe Places to Funnel the Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-23 05:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investopedia.com/need-to-take-an-rmd-by-years-end-these-cds-are-smart-safe-places-to-funnel-the-money-8750060><strong>Investopedia</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Key Takeaways\n\nIf you're in the required minimum distribution (RMD) stage of a retirement account, you need to withdraw your 2024 RMD by Dec. 31.\nBut if you don't need that money right now, it's smart...</p>\n\n<a href=\"https://www.investopedia.com/need-to-take-an-rmd-by-years-end-these-cds-are-smart-safe-places-to-funnel-the-money-8750060\">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":"BK7501","symbol_name":"新冠治疗股","start_time":0,"source_url":"https://www.investopedia.com/need-to-take-an-rmd-by-years-end-these-cds-are-smart-safe-places-to-funnel-the-money-8750060","article_id":"2485552243","we_media_id":null,"thumbnails":["https://www.investopedia.com/thmb/5PxdPsEjlMylSlLM131h0AAdxlI=/8192x5464/filters:no_upscale():max_bytes(150000):strip_icc()/FreshSplash-12d156c7db234dfba52d43a27c871032.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485552243","pubTimestamp":1732310879,"sourceInfo":{"source_id":"investopedia_highlight","name":"Investopedia"},"weMediaInfo":null,"summary":"If you're in the required minimum distribution  stage of a retirement account, you need to withdraw your 2024 RMD by Dec. 31.But if you don't need that money right now, it's smart to put it where it can earn a strong return. Today's best CDs fit that bill, offering a risk-free strategy that can pay a guaranteed 4% to 5% APY—even up to 5.50%.Below we lay out more than two dozen top-paying CDs that let you lock in one of today's stellar rates well into 2025, 2026, or even longer.To retain access to some of your RMD cash, consider a top high-yield savings account in addition to CDs. But note that savings rates will fall with any Fed rate cuts, while CD rates are fixed until the term ends.Thanks to the Federal Reserve's historic rate-hike campaign between 2022 and 2023, aimed at taming post-pandemic inflation, CD rates surged to 20-year highs last fall—reaching above 6%. Now that inflation has cooled, however, the Fed has shifted to a rate-cutting phase. As a result, CD rates have been dec","collect":0,"end_time":0,"defaultTopTitle":"investopedia.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7501":"新冠治疗股","RMD.AU":"Resmed DRC","BK4548":"巴美列捷福持仓","BK4082":"医疗保健设备","LU2177674079.SGD":"Fidelity Asia Pacific Opportunities A-ACC-SGD (hedged)","BK7007":"医疗保健设备","BK4585":"ETF&股票定投概念","BK4567":"ESG概念","RMD":"瑞思迈","CD":"秦淮数据","BK4588":"碎股","BK4116":"互联网服务与基础架构","BK4504":"桥水持仓","LU2008162690.USD":"FIDELITY FUNDS - ASIA PACIFIC OPPORTUNITIES \"A\" (USD) ACC"},"translate_title":"需要在年底前参加RMD吗？这些CD是聪明、安全的资金来源","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RMD.AU":1,"RMD":1,"US7Y.BOND":0.9,"US6M.BOND":0.9,"US5Y.BOND":0.9,"US3Y.BOND":0.9,"US30Y.BOND":0.9,"US2Y.BOND":0.9,"US12M.BOND":0.9,"US10Y.BOND":0.9,"CD":0.9},"content_text":"Key Takeaways\n\nIf you're in the required minimum distribution (RMD) stage of a retirement account, you need to withdraw your 2024 RMD by Dec. 31.\nBut if you don't need that money right now, it's smart to put it where it can earn a strong return. Today's best CDs fit that bill, offering a risk-free strategy that can pay a guaranteed 4% to 5% APY—even up to 5.50%.\nBelow we lay out more than two dozen top-paying CDs that let you lock in one of today's stellar rates well into 2025, 2026, or even longer.\nThe Fed is likely to lower interest rates next year, with a reduction also possible next month. Since any rate cut will push CD rates down, it's wise to lock in a CD you like as soon as possible.\nTo retain access to some of your RMD cash, consider a top high-yield savings account in addition to CDs. But note that savings rates will fall with any Fed rate cuts, while CD rates are fixed until the term ends.\n\n The full article continues below these offers from our partners.\n\n\n\n\n\n  2024 RMD Withdrawals Are Due by Dec. 31—But You Can Still Save the Money  \n If you have a retirement account that stipulates required minimum distributions (RMDs) after a certain age, those withdrawals must occur every year by Dec. 31 in order to avoid significant penalties. You can withdraw the required dollar amount—or more—at any time throughout the year, and in as many withdrawals as you like. But to let your money grow tax-free for as long as possible in your retirement account, you may opt to wait until late in the year to make one lump-sum withdrawal of the required RMD amount.\n\n\n This is especially true if you don't need the money right now. But where should you put the unneeded funds you withdraw? If you're confident you won't need the money for a long time, you could consider reinvesting it in a taxable brokerage account. But that comes with risk, as investments can lose money.\n\n\n If instead you'd like to protect the cash from any losses while still watching it grow, you're in luck in 2024. That's because savings accounts and certificates of deposit (CDs) are paying historically high rates right now. By shopping around for a top savings or CD rate (we have dozens of excellent options for you below), your funds can grow 4% to 5%—or even more—and be safe from any risk.\n\n\nAll Federally Insured Institutions Are Equally Safe\nAll of the institutions we rank for savings and CD accounts are federally insured: by the FDIC for banks or the NCUA for credit unions. This means that no matter how big or small the institution, your deposits up to $250,000 per person are federally protected.\n  Why CDs Are So Smart Right Now for Your Savings  \n Thanks to the Federal Reserve's historic rate-hike campaign between 2022 and 2023, aimed at taming post-pandemic inflation, CD rates surged to 20-year highs last fall—reaching above 6%. Now that inflation has cooled, however, the Fed has shifted to a rate-cutting phase. As a result, CD rates have been declining, with the top nationwide rate recently slipping to 5.50%.\n\n\n Unfortunately for savers, the Fed is expected to follow up on September and November cuts to the federal funds rate with further reductions—possibly in December, but almost certainly in 2025. The central bank could even keep cutting rates into 2026.\n\n\n This potentially long rate slide is precisely why today's top CDs—especially multi-year certificates—are such a smart move right now. By locking in one of today's rates, your return on those funds will be insulated from whatever moves the Fed makes in the next couple of years.\n\n\n While it's true that the best nationwide CD rates have softened from their 2023 peak, they continue to pay historically high returns. Just compare today's rates below to the rates on a CD opened in early 2022, when the very top rates in the nation ranged from just 0.50% to 1.50% APY.\n\n\n\n\n  These Top-Paying CDs Provide a Smart, Safe Place for Your RMD Funds  \n Our daily ranking of the best CD rates always provides you with a list of the highest-paying offers that are available nationwide. Right now, the top returns are offered on shorter-term CDs, while longer-term CDs pay slightly lower rates but extend their rate guarantee much further into the future.\n\n\n Here's a roundup of some of today's hottest rates across terms that can extend almost as far as 2030. For further details on any of these CDs, click the link to our list of the best offers in that term.\n\n\n\n\nLive In One of These States? You Could Earn Even More\nThe above CDs are available to anyone nationwide, but sometimes regional banks and credit unions pay higher rates. We unearthed 13 of these nation-beating CDs this week, available to certain CD shoppers in Texas, Pennsylvania, Michigan, Tennessee, Wisconsin, and Maine.\n  To Maintain Access to Some Money, Consider These High-Yield Savings Accounts  \n If you can't commit all of your RMD funds to a CD, the next-best option is to sock the cash away in a top-ranked high-yield savings account. Though these rates are expected to come down as the Fed implements future rate cuts, for now you have multiple choices to earn at least 5.00%.\n\n\n You can find details on these options, plus many more, in our daily roundup of today's best high-yield savings account rates.\n\n\n\n\nDaily Rankings of the Best CDs and Savings Accounts\nWe update these rankings every business day to give you the best deposit rates available:\nBest 3-Month CD Rates\nBest 6-Month CD Rates\nBest 1-Year CD Rates\nBest 18-Month CD Rates\nBest 2-Year CD Rates\nBest 3-Year CD Rates\nBest 4-Year CD Rates\nBest 5-Year CD Rates\nBest High-Yield Savings Accounts\nBest Money Market Accounts\n\nNote that the \"top rates\" quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.\n  How We Find the Best Savings and CD Rates  \n Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that's below $5,000.\n\n\n Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.","kind":"highlight","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":0},"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/2485552243"}