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Why you should open a CD despite inflation cooling

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Even with a declining inflation rate, a CD offers multiple benefits for savers right now.

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Borrowers looking for a silver lining in today’s inflationary economic climate got it on Thursday morning when the Bureau of Labor Statistics announced a drop in the inflation rate. Down to 3.4% in April from March’s 3.5%, the drop was minimal but is still a move in the right direction. After all, elevated inflation has resulted in the Federal Reserve raising the federal funds rate to its highest point in decades. That’s caused the cost of credit cards, personal loans, mortgages and more to surge.

But it’s also increased returns on savings vehicles like high-yield savings and certificates of deposit (CD) accounts. Savers can earn exponentially more with these accounts than they could have a few years ago, with both offering rates of 4% or higher right now. That said, a declining inflation rate will eventually cause returns on these accounts to fall, so it benefits savers to act quickly, especially when considering CDs. Below, we’ll detail three reasons why you should open a CD now despite the cooling inflation rate.

See how much more you could earn with a CD account here now.

Why you should open a CD despite inflation cooling

Here are three reasons why it’s still worth opening a CD despite the cooling inflation news:

The cooling was negligible

Sure, the inflation rate has cooled, but by how much? A 0.1% drop will hardly be enough to improve the economy or change the dynamic of borrowing and saving. Accordingly, interest rates on CDs will remain high for the time being, allowing savers an opportunity to capitalize while they still are. And considering that rates are elevated no matter the CD term you choose, there are plentiful options available. Just be proactive in case the April report is an indicator of additional cooling to come.

Get started with a top CD online now.

Rates are locked

If you think inflation is on a permanent decline — and it has dropped significantly from a decades-high in June 2022 — then you may want to use the new report as a motivation to get started. Since rates on these accounts are locked, you’ll still earn today’s high returns even if inflation continues to fall — and the federal funds rate eventually gets lowered in response. And every lower inflation report makes that more and more of a possibility. So don’t wait and get stuck with a low CD rate; act now instead.

The alternatives are not as beneficial

CD rates are high right now and they’re locked. But high-yield savings account rates are high and variable, meaning that as inflation cools, rates will drop and the returns on high-yield savings accounts will fall as well. That’s something to be avoided, especially if the April report indicates future cooling ahead. Regular savings accounts, meanwhile, come with a minimal 0.46% rate on average right now. That’s not even keeping pace with inflation, meaning you’re losing money in the process. Compared to these alternatives, then, a CD is the clear top choice, even with inflation cooling now.

The bottom line

A drop in inflation may be the first of many to come. Those considering a CD should act aggressively then, even despite this rate dropping in April. Because it only dropped by a small amount, however, returns on these accounts are still worth pursuing now, especially because they will be locked even if rates eventually fall. And, compared to the variable rate of high-yield savings accounts and the barely existent returns on regular savings accounts, CDs are still valuable for many prospective accountholders now. 

Start earning more interest with a top CD here



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Robert Towne, legendary Hollywood screenwriter of “Chinatown,” dies at 89

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Robert Towne, the Oscar-winning screenplay writer of “Shampoo,” “The Last Detail” and other acclaimed films whose work on “Chinatown” became a model of the art form and helped define the jaded allure of his native Los Angeles, has died. He was 89.

Towne “passed away peacefully surrounded by his loving family” Monday at his home in Los Angeles, his publicist Carri McClure, told CBS News in a statement. She did not provide a cause of death.

In an industry which gave birth to rueful jokes about the writer’s status, Towne for a time held prestige comparable to the actors and directors he worked with. Through his friendships with two of the biggest stars of the 1960s and ’70s, Warren Beatty and Jack Nicholson, he wrote or co-wrote some of the signature films of an era when artists held an unusual level of creative control. The rare “auteur” among screen writers, Towne managed to bring a highly personal and influential vision of Los Angeles onto the screen.

Writer Robert Towne
Writer Robert Towne in audience during the 36th AFI Life Achievement Award tribute to Warren Beatty held at the Kodak Theatre on June 12, 2008 in Hollywood, California. 

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“It’s a city that’s so illusory,” Towne told The Associated Press in a 2006 interview. “It’s the westernmost west of America. It’s a sort of place of last resort. It’s a place where, in a word, people go to make their dreams come true. And they’re forever disappointed.”

Recognizable around Hollywood for his high forehead and full beard, Towne won an Academy Award for “Chinatown” and was nominated three other times, for “The Last Detail,” “Shampoo” and “Greystoke.” In 1997, he received a lifetime achievement award from the Writers Guild of America.

“His life, like the characters he created, was incisive, iconoclastic and entirely (original),” said “Shampoo” actor Lee Grant on X.

Towne was born Robert Bertram Schwartz in Los Angeles and moved to San Pedro after his father’s business, a dress shop, closed down because of the Great Depression. His father changed the family name to Towne.

Towne’s success came after a long stretch of working in television, including “The Man from U.N.C.L.E” and “The Lloyd Bridges Show,” and on low-budget movies for “B” producer Roger Corman. In a classic show business story, he owed his breakthrough in part to his psychiatrist, through whom he met Beatty, a fellow patient. As Beatty worked on “Bonnie and Clyde,” he brought in Towne for revisions of the Robert Benton-David Newman script and had him on the set while the movie was filmed in Texas.

Towne’s contributions were uncredited for “Bonnie and Clyde,” the landmark crime film released in 1967, and for years he was a favorite ghost writer. He helped out on “The Godfather,” “The Parallax View” and “Heaven Can Wait” among others and referred to himself as a “relief pitcher who could come in for an inning, not pitch the whole game.” But Towne was credited by name for Nicholson’s macho “The Last Detail” and Beatty’s sex comedy “Shampoo” and was immortalized by “Chinatown,” the 1974 thriller set during the Great Depression.

“Chinatown” was directed by Roman Polanski and starred Nicholson as J.J. “Jake” Gittes, a private detective asked to follow the husband of Evelyn Mulwray (played by Faye Dunaway). The husband is chief engineer of the Los Angeles Department of Water and Power and Gittes finds himself caught in a chaotic spiral of corruption and violence, embodied by Evelyn’s ruthless father, Noah Cross (John Huston).

Influenced by the fiction of Raymond Chandler, Towne resurrected the menace and mood of a classic Los Angeles film noir, but cast Gittes’ labyrinthine odyssey across a grander and more insidious portrait of Southern California. Clues accumulate into a timeless detective tale, and lead helplessly to tragedy, summed up by one of the most repeated lines in movie history, words of grim fatalism a devastated Gittes receives from his partner Lawrence Walsh (Joe Mantell): “Forget it, Jake, it’s Chinatown.”

The back story of “Chinatown” has itself become a kind of detective story, explored in producer Robert Evans’ memoir, “The Kid Stays in the Picture”; in Peter Biskind’s “East Riders, Raging Bulls,” a history of 1960s-1970s Hollywood, and in Sam Wasson’s “The Big Goodbye,” dedicated entirely to “Chinatown.” In “The Big Goodbye,” published in 2020, Wasson alleged that Towne was helped extensively by a ghost writer — former college roommate Edward Taylor. According to “The Big Goodbye,” for which Towne declined to be interviewed, Taylor did not ask for credit on the film because his “friendship with Robert” mattered more.

The studios assumed more power after the mid-1970s and Towne’s standing declined. His own efforts at directing, including “Personal Best” and “Tequila Sunrise,” had mixed results. “The Two Jakes,” the long-awaited sequel to “Chinatown,” was a commercial and critical disappointment when released in 1990 and led to a temporary estrangement between Towne and Nicholson.

Around the same time, he agreed to work on a movie far removed from the art-house aspirations of the ’70s, the Don Simpson-Jerry Bruckheimer production “Days of Thunder,” starring Tom Cruise as a race car driver and Robert Duvall as his crew chief. The 1990 movie was famously over budget and mostly panned, although its admirers include Quentin Tarantino and countless racing fans. And Towne’s script popularized an expression used by Duvall after Cruise complains another car slammed him: “He didn’t slam into you, he didn’t bump you, he didn’t nudge you. He rubbed you.

“And rubbin,′ son, is racin.'”

Towne later worked with Cruise on “The Firm” and the first two “Mission: Impossible” movies. His most recent film was “Ask the Dust,” a Los Angeles story he wrote and directed that came out in 2006. Towne was married twice, the second time to Luisa Gaule, and had two children. His brother, Roger Towne, also wrote screenplays, his credits include “The Natural.”



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Analyzing impact of Supreme Court’s Trump immunity decision

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It’s been a day since the Supreme Court ruled that former President Donald Trump has immunity from criminal prosecution for official acts taken in office but that he is not protected from prosecution for unofficial acts. CBS News legal analyst Jessica Levinson joins to unpack the decision.

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