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3 smart CD moves to make before March
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The interest rate environment has been volatile in recent years, hitting record lows during the height of the pandemic in 2020 and 2021 and surging to decade-highs in 2022 and 2023. Inflation rose to the highest point in more than 40 years in June 2022 and the benchmark interest rate range set by the Federal Reserve hit a 23-year high last summer. This has resulted in a tremendous turnaround for borrowers who paid almost nothing to borrow money a few years ago but are now paying exponentially more for mortgages, credit cards, personal loans and more.
The recent turmoil has been a boost for savers, however, thanks to tremendous returns on high-yield savings and certificates of deposit (CD) accounts. Both account types, however, derive their benefits from the interest rate climate. As that adjusts they may revert to the norms of recent years.
This is why it’s so important to time the opening of these accounts just right. And CDs, in particular, need to be opened at the opportune time. With inflation still stubborn and another Federal Reserve meeting on the horizon next month, there are some smart CD moves savers may want to make before March. Below, we’ll break down three of them.
Start by learning how much you could be earning with a top CD here now.
3 smart CD moves to make before March
Here are three strategic CD moves to make before March.
Shop around for lenders
Not all banks and lending institutions will offer you the same CD rate. You’re much more likely to find a competitive rate with an online bank versus one with physical locations, for example. Since the former type doesn’t have the overhead costs that the latter one does, they’re often able to offer savers higher rates.
But even online banks will offer different rates from one another so, before committing to any specific one, first shop around for lenders to see what you can find. Ideally, you’ll be able to secure an account with a high APY and no fees.
Start shopping for CDs online today.
Know your options
Not only do CDs come with different rates and fees, but they also come in different lengths (or terms). So it behooves savers to know these options before getting started. Right now, short-term CDs (which mature in 12 months or less) typically have higher rates than long-term CDs (which can last for multiple years).
That said, in the face of presumed rate cuts later this year, there’s a compelling case to be made for opening long-term CDs now. By opening one of these account types now, you’ll lock in a high rate for the future, even if rates come down in the interim. However, you’ll need to be comfortable leaving your funds untouched for the duration of the CD term or you could risk being hit with an early withdrawal penalty. But research your options first before acting.
Get started
Once you’ve shopped around for lenders, reviewed your options and picked a CD term, it’s important to get started. Today’s CD rates won’t be around forever and many are forecasting a drop later this year, possibly as soon as May or June.
With this context, it’s important not to delay opening an account. While a rate drop isn’t likely to dramatically reduce the returns you can get with a CD (at least not in 2024), every dollar counts and it would be counterproductive to wait for that to happen. So get started today.
And if you’re concerned about missing out on potential rate increases, don’t be. Even if rates do jump in the future, you can ladder multiple accounts with different maturity dates now so that one or more expire in time to take advantage of rate opportunities in the future.
The bottom line
When it comes to savings vehicles like CDs, the timing is crucial. And right now is a great time to get started, before the next Federal Reserve meeting and possible rate reductions to come later in 2024. Savers should start shopping for lenders this month and know what kind of term they’re looking for before opening an account. Once they’ve taken those two steps, they should feel comfortable acting quickly to open an account. Since these high rates are unlikely to stay this high much longer, it’s beneficial to be proactive, even before the start of a new month.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
CBS Philadelphia
Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.