Ask Terry Questions Bank ‘CD” rates

Bank ‘CD” rates

By Terry Savage on December 23, 2018 | Chicken Money

Hi Terry, with bank ‘CD’ interest rates starting to move in the right direction, what’s you advice, wait for a while? Any particular banks or financial institutions you recommend? We bought a 10K ‘CD’ from BMO-Harris about two years ago with a 2.00% APR , pretty good then, we thought! Now other institutions rates are around 2.25% to 2.50%. Thanks. Happy Holidays.

Thank you.

Terry Says

Trying to time the peak in interest rates is just as difficult as trying to time the peak in the stock market.  I suggest you “ladder” your CDs, with some coming due every month.  That way, if rates do move higher, you’ll get the higher rate when you renew.

And if pennies are important to you, do it instead with 6-month (26 week) U. S. Treasury bills.  There’s no state income tax on those!  Read this article.



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