Articles
Selected category: CDs
3 Simple Reasons to Never Ever Buy a Brokered Certificate of Deposit
On and off from February to May of 2023, US financial markets witnessed something that they ordinarily do not experience. We saw 1-year and 18-month brokered CDs rise to levels that were competitive with 1-year or 18-month online CDs, as... Read →
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You Have Not Missed Your Chance to Lock in Long-Term Cash At Higher Rates
US Treasury rates came down dramatically last week, with the 1-year falling from 5.32% to as low as 5.01%, with still more pronounced declines along the longer end of the curve (the 10-year, for example, crashed from 4.55% to... Read →
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Certificates of Deposit Are Now More Attractive than US Treasurys Across All Maturities for All Tax Brackets
Interest rate moves over the last 23 months have been so pronounced that most banks - including online banks - have struggled to offer their customers certificate of deposit rates that compete with what those same customers can get in US... Read →
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A Variable Rate or Indexed Rate CD is an Absurd Product for Depositors
We've been fielding a lot of questions from readers about "variable CDs", "flexible rate CDs" or "indexed CDs". It seems that several banks and credit unions have been heavily promoting these products, and... Read →
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1-Year CDs Offer Superior Returns to 1-Year US Treasuries for Everyone
1-Year Certificate of Deposit offerings remain quite strong. As of the date of this article, there are at least 8 online 1-year CDs being offered at 5.15% or higher. Depending on where you live, you will probably also find 1-year CDs... Read →
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Buying Brokered CDs from Banks on the Brink Seems Like a Bad Strategy
Those owning full-service brokerage accounts at institutions like Morgan Stanley have probably received calls this week from their brokers. In addition to calming you down about the crisis around the banks, many of these brokers’... Read →
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Warming Slightly to Certificates of Deposit
I advised readers of BestCashCow.com in April to be especially weary of jumping into CDs with interest rates about to rise. I still believe interest rates have a lot further to rise. Even though oil and gas and other commodity prices... Read →
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Mid-2022 is Just Not the Time to Buy Certificates of Deposit
My inbox is full of two types of emails from readers of BestCashCow and RatesAndInfo.com, a BestCashCow subsidiary. The first is from those who are excited to have found a great CD rate, and the second is from those who are inquiring... Read →
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Probably the Worst Moment in the History of Mankind to be Locking into Long Term CDs
I was recently contacted by a reader about 5-year CD rates. Given that the best rate available at any online bank, local bank or credit union remains not much better than 1%, I have long and strongly admonished that it would not be a... Read →
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The Federal Reserve and Treasury Secretary Janet Yellen Should Consider an Emergency Fed Funds Hike - Maybe Even 50 BPS
Now that we are reaching the end of Jay Powell’s tenure as Chairman of the Federal Reserve, it is fair to say that the man has strayed from his pre-chairmanship policy positions when he had emphasized using Fed policy to promote price... Read →
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5 Reasons Why You Should Never Ever Buy A Structured Note
Morgan Stanley, Goldman Sachs and second-tier full service brokerages make a real market in structured notes. So-called "structured notes" are intricate products that carry the possibility of earning a much higher interest rate... Read →
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1-Year CD Rates Over 2% Are Tempting But Preserving Liquidity In A Crisis Is Essential
BestCashCow today shows online banks offering one-year CD rates as high as 2.28%. Depending on where you live, you may also find local banks or credit unions near where you live that have 1-year CD rates at or around that level. It is... Read →
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Some 1-Year CDs Are Still over 2% APY Following the Coronavirus-Induced Fed Cut
We’ve read and heard a lot of financial markets information since the Federal Reserve’s emergency rate cut last Tuesday in response to the spread of Coronavirus. By the end of the week, 10-year US Treasuries were trading... Read →
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Should You Really Be Buying 1-Year CDs Right Now?
I was at the gym yesterday and a friend who manages money for wealthy New Yorkers asked me if his clients (a married couple) should be putting $500,000 into a 1-year CD here and now at 2.00%. He believes that with the stock market at an... Read →