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Interest Rates Climbing Buy A CD When?

rhinefire

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I have three CDs maturing in the next three months and I am thinking I should hold off renewing them hoping for a better rate soon this year. Comments?
 

OrphanSlug

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CDs are returning far less than just base inflation rates per year, you are literally giving your money to a bank to return slightly more money but all of it worth less.
 

gdgyva

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I have three CDs maturing in the next three months and I am thinking I should hold off renewing them hoping for a better rate soon this year. Comments?
you cant find a better investment than a CD which isnt even keeping up with inflation?
 

Schism

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Wait until Biden's economy drives interest rates into the high teens.
 

Felis Leo

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I have three CDs maturing in the next three months and I am thinking I should hold off renewing them hoping for a better rate soon this year. Comments?

Am I wrong in presuming you want a safe place to park your money long-term? I don't know how much you have in your CDs, but if you want a "better rate," why not just purchase an inflation-protected savings bond directly from the United States Treasury? It's guaranteed by the United States government and, if nothing else, at least your money grows at the rate of inflation.

 
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Court Jester

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I would not buy CDs unless the Fed hikes interest rates to what they actually need to be right now in order to slow inflation. But the Biden administration is not willing to do that--- not yet. Probably waiting (and hoping) for some better economic news prior to the midterm elections.
 

reflechissez

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Am I wrong in presuming you want a safe place to park your money long-term? I don't know how much you have in your CDs, but if you want a "better rate," why not just purchase an inflation-protected savings bond directly from the United States Treasury? It's guaranteed by the United States government and, if nothing else, at least your money grows at the rate of inflation.

TIPS and Ibonds work differently. Of the 2, Ibonds are easier to understand and will probably return more, but you can only by $10,000.
 

reflechissez

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Better ROI? Of course that is assuming @rhinefire is treating the CD as an investment rather than as a vehicle for secure, long-term savings.
CD's are for principal protection and guaranteed return. They are investments too.
 

Felis Leo

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CD's are for principal protection and guaranteed return. They are investments too.

True. But with the present rate of return in which the purchasing power of the principal is lost year over year, I cannot say it is the best of investments...unless of the market crashes like in 2008 and he is the last one left standing to pick up the pieces with a solid amount of inflation-diminished savings. To have had a few hundred thousand dollars in mature CDs back in 2009 when some of the best companies in the US and around the world were available at bargain-bin prices. It might well happen in the future.
 

reflechissez

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True. But with the present rate of return in which the purchasing power of the principal is lost year over year, I cannot say it is the best of investments...unless of the market crashes like in 2008 and he is the last one left standing to pick up the pieces with a solid amount of inflation-diminished savings. To have had a few hundred thousand dollars in mature CDs back in 2009 when some of the best companies in the US and around the world were available at bargain-bin prices. It might well happen in the future.
I'm not disagreeing with that. I didn't say it was the "best of investments," Everything has trade offs.
 

PIPEWRENCH

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I have three CDs maturing in the next three months and I am thinking I should hold off renewing them hoping for a better rate soon this year. Comments?
Why did you have your money in a CD in the first place? The Biden inflation has destroyed anything you might have made in interest even if you had it for 5 years. The only reason I put my money in a CD is while I am waiting for our government to crash our economy so I can invest it and make some real money.

I get the sure investment insider trading tips magazine put out by Pelosi and congress. That way I know when to pull my money out and when to invest. ;)
 

reflechissez

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Why did you have your money in a CD in the first place? The Biden inflation has destroyed anything you might have made in interest even if you had it for 5 years. The only reason I put my money in a CD is while I am waiting for our government to crash our economy so I can invest it and make some real money.

I get the sure investment insider trading tips magazine put out by Pelosi and congress. That way I know when to pull my money out and when to invest. ;)
How do you know when he purchased the CD's?
 

PIPEWRENCH

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How do you know when he purchased the CD's?
Hopefully it hasn't been for too long. Interest rates on CD's have sucked for decades now. Of course now that Carter I mean Biden is in office it might not be too bad. Of course it is doubtful the bankers will give you an interest rate high enough to overcome inflation. That is why they all have their money in the stock market.
 

reflechissez

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Hopefully it hasn't been for too long. Interest rates on CD's have sucked for decades now. Of course now that Carter I mean Biden is in office it might not be too bad. Of course it is doubtful the bankers will give you an interest rate high enough to overcome inflation. That is why they all have their money in the stock market.
Not true. show your work. As to the rest of your post -- you're not well-informed.
 

gdgyva

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Nothing in the market is 100%

But there are some pretty safe bets

Equities where you can be fairly certain the dividends will be safe....and the company will still be in business in say 5-10 years

They only grow at 5-7% annually organically....but a lot of people have invested in them for decades safely

You can put your money in CD's or savings accounts and actually lose money to inflation

Or try to at least stay abreast in a safe dividend paying equity
 

Ahlevah

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TIPS and Ibonds work differently. Of the 2, Ibonds are easier to understand and will probably return more, but you can only by $10,000.

IIRC, you can buy up to an additional $5,000 in paper I-Bonds if you take your tax refund as bonds instead of a check or bank deposit. Before putting a dime into a CD I’d get the bonds first.
 

reflechissez

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Nothing in the market is 100%

But there are some pretty safe bets

Equities where you can be fairly certain the dividends will be safe....and the company will still be in business in say 5-10 years

They only grow at 5-7% annually organically....but a lot of people have invested in them for decades safely

You can put your money in CD's or savings accounts and actually lose money to inflation

Or try to at least stay abreast in a safe dividend paying equity
This is irresponsible language.
 
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