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Why you should open a CD this June
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When considering the right savings account, timing plays a key role. If you had opened a high-yield savings account or certificate of deposit (CD) account in the spring of 2020 or 2021, you would have seen a negligible return on your deposit. But as the economy evolved, inflation grew and the federal funds interest rate increased. That resulted in returns on both account types growing exponentially. Now, rates on both accounts hover near 5% or higher.
That noted, inflation has cooled significantly since hitting a decades-high in June 2022. And if it continues to fall, a cut to the federal funds rate could become possible. While that would be good news for borrowers, it won’t be as beneficial for savers. This underlines the importance of opening these accounts now and there are compelling reasons why you may want to open a CD heading into June. Below, we’ll break down three of them.
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Why you should open a CD this June
In an evolving rate climate, knowing when to get involved and when to hold back is important. Understanding that, here are three reasons why you should consider opening a CD this June.
Rates are already high
It’s not difficult to find a CD with a rate of 5% or higher right now, especially if you’re willing to open an account with an online bank. That’s equivalent to $5 earned for every $100 deposited, simply in exchange for moving some of your money into one of these accounts. To earn the full return, however, you’ll need to be willing to keep your money in the account untouched until the full CD term has matured. But that may be a reasonable compromise for many, particularly when stacked against the minimal 0.45% average rate that comes with regular savings accounts now.
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Rates could rise again
The next inflation report is scheduled to be released on June 11 and the Federal Reserve is set to meet that day and on June 12, too. If the numbers in the former are still too high, don’t be surprised to see the Fed raise rates the following day. But even if they just hint at a rate hike to come, that could be enough to raise the rates lenders offer on their CD accounts. After all, while the Fed doesn’t directly dictate what lenders offer, they do influence the rates they offer customers. So be ready to act by then – or consider locking in a rate now before any announcement adversely affects what you otherwise could have secured.
It’s a safe way to protect your money
Not only is a CD safe from any bank failures (it’s FDIC-insured up to $250,000 per account, per lender) but it’s also a way to protect against what otherwise may have been an endless cycle of withdrawals and deposits. And with inflation still stubborn and the costs of everyday living prohibitive, the chances of you accessing this money often are high. But with an early withdrawal penalty as an incentive to hold off, you may be able to save more money than if you had flexible access. That’s a big plus this June and in most other months and seasons, too.
The bottom line
If you missed out on the opportunity to earn substantial returns on CDs in recent years then be prepared to act ahead of June. Rates on these accounts are already high but could they could tick up even further based on a new inflation report and Federal Reserve meeting mid-month. And with effective ways to protect your money in today’s inflationary climate scarce, it can behoove savers to act now while these accounts are still advantageous.
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.
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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.