CD rates keep getting lower and lower, and not to be a harbinger of bad news, but I think they could still go lower. The longer the Fed keeps rates suppressed, the closer they will get to 0% and the flatter the yield curve will become. But does it matter? Yes and no.
In my recent article, Zombie CD Rates, I caution against becoming complacent and throwing your hands up over low interest rates. On the other hand, CDs as an investment aren’t designed to make you rich — they are designed to preserve capital.
Benefits of a Certificate of Deposit: More than Rates
The benefits of a certificate of deposit are government backed insurance, for one. If the FDIC insured bank or NCUA insured credit union fails, you get your principal and interest back (assuming you are under the insurance limits). If t
There are always fluctuations that occur with your financial situation. Being prepared for the ups and downs that happen is one of the key components to smart financial planning. What type of savings account should you create? What savings account options are available? How much money should you set aside in savings? With the future always being an “unknown” it is best to create an emergency fund that you can live on for at least 3-6 months. Here are some tips to follow as you create an emergency fund:
Having your federal income tax refund deposited to your checking account takes about two weeks, as opposed to the six to eight weeks it takes for a paper check refund to arrive. Unfortunately, according to the FDIC, there are about 30 million households that miss out on this luxury because they don’t have a bank account. Often, the solution is a tax refund anticipation loan, which results in high interest rates and less money back.
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