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Should you put $5,000 in a 3-year CD? Experts weigh in

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A 3-year CD may be a wise place to deposit $5,000 in today’s unusual economic environment. 

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If you have $5,000 in savings outside of what you need for your emergency fund, you may be wondering where you can store that money and earn a meaningful return. In this case, a 3-year certificate of deposit (CD) could be what you’re looking for. 

CDs are savings vehicles that typically pay competitive interest rates when compared to savings accounts and other options. And, the returns on CDs are fixed, so no matter what happens to interest rates in the future, you’ll continue to earn the same rate for the entire account term. But the tradeoff is that you’ll need to leave your money in the CD for the full term to access those competitive fixed returns. Otherwise, you could have to pay for an early withdrawal penalty that eats into your returns.

But there are lots of good options to consider in today’s high-rate environment, so is it really worth putting $5,000 into a 3-year CD right now? Here’s what experts say about doing so. 

Compare some of the top CD rates on the market now

Should you put $5,000 in a 3-year CD? Experts weigh in

Right now, First Internet Bank of Indiana, Popular Direct and Quontic Bank offer 3-year CDs with leading interest rates of 4.61%, 4.50% and 4.40% APYs, respectively. And, there are lots of other 3-year CD options with rates that rival these CD accounts.

But, today’s high rates aren’t the only reason the experts say you should put $5,000 into a 3-year CD right now. Other reasons include: 

To lock in today’s high rates

“One of the direct benefits of locking in a 3-year CD at a fixed rate would be if rates decreased during the three years, then you would continue to enjoy a higher yield,” says John Jones, an investment advisor representative at Heritage Financial, a financial planning firm.

That’s important to consider given the current state of the economy. As inflation continues to cool, the Federal Reserve grows more likely to cut its federal funds rate, which could lead to lower returns on CDs in the future. So, by opening a 3-year CD now, you’re able to lock in today’s high rates. 

“If you are a CD shopper or investor, this is at or very close to the time to lock in the longer-dated options as we will start to see rate regression very quickly,” says Matt Willer, managing director of capital markets at Phoenix Capital Markets, an investment management firm. 

When you open a 3-year CD, Willer says, you may earn “more than if you had waited ’til future dates during the rate decrease cycle. So, you’re preserving the elevated rate since the alternative will be measurably lower.”

Lock in a high rate on a CD today

To keep your money safe

“CDs are amongst the safest places to deploy capital,” says Willer. “So, for the risk-averse, the conservative, it’s a disciplined and predictable way to grow capital with negligible risk exposure.”

So, what makes a 3-year CD a safe place to store your $5,000? Here are a few ways CDs can offer safety: 

  • Protection against rate volatility: CDs offer a fixed, predictable rate of return. This rate is locked in, so you won’t have to worry about rate volatility for three years when you open a 3-year CD. 
  • FDIC or NCUA insurance: Most CD accounts offer up to $250,000 in FDIC or NCUA insurance per depositor, per account. That means your money is safe even if the financial institution goes out of business or faces other major issues with liquidity. 
  • Protection against early withdrawals: If you tap into your CD early, you may have to pay an early withdrawal penalty, making it less likely that you’ll do so. So, CDs can help keep your money safe from unnecessary withdrawals, as you’ll have to carefully consider the pros and cons of tapping into it before your account matures.  

Simplified planning

Ultimately, there are no surprises with a CD. Everything from the account term to the potential returns will be clear from the moment you open it. So, opening a 3-year CD now can help ensure that your money meets the financial goals you’ve set for three years from now. 

“Finally, there is no ambiguity, you know what you have, you know what you’re getting, and you know how long your commitment is, which simplifies planning,” says Willer. 

Use a CD to help you achieve your financial goals today

The bottom line

If you have $5,000 and you’re not sure where to store it, you may want to consider opening a 3-year CD. Experts say that doing so can preserve today’s high interest rates while keeping your money safe. And, since the terms of the account are clear from the start, and the returns are fixed, these types of accounts can be a smart tool to help you achieve your financial goals. Compare today’s leading CDs now



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Rep. Mike Turner says all “candidates need to deescalate” after Trump assassination attempts

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Rep. Mike Turner, an Ohio Republican who chairs the House Intelligence Committee, responded Sunday to Eric Trump’s implication that his father’s Democratic opponents were responsible for the attempts on former President Trump’s life, saying the innuendo was “of course” inaccurate but political candidates on both sides of the aisle “need to deescalate” their rhetoric.

“No, of course not,” Turner said in his latest appearance on “Face the Nation with Margaret Brennan,” after being asked whether he believes there was truth to claims made by the former president, his son Eric, and his vice presidential running mate, Sen. JD Vance, at a rally where each either implied or suggested Democrats tried to kill him.

Trump returned Saturday to Butler, Pennsylvania, to speak to supporters gathered at the Butler Farm Show fairgrounds, the site of the July 13 assassination attempt against him. A gunman facing Trump on the podium at that rally opened fire into the crowd, grazing Trump’s ear, killing one attendee and injuring two others, according to authorities. The gunman was killed by a Secret Service sniper, officials said. 

Another apparent assassination attempt happened in September when a suspect pointed a gun in Trump’s direction on the Florida course where he was playing golf. The FBI has opened probes into both incidents. 

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Rep. Mike Turner on “Face the Nation with Margaret Brennan,” Oct. 6, 2024.

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Trump, his son and Vance all acknowledged the assassination attempt in Butler at Saturday’s campaign event.

“Over the past eight years, those who want to stop us from achieving this future have slandered me impeached me indicted me tried to throw me off the ballot and, who knows, maybe even tried to kill me,” said the former president, while Eric Trump claimed his father’s political opponents “tried to kill him, and it’s because the Democratic party, they can’t do anything right.”

Vance, in his remarks, addressed Trump’s Democratic challenger in the presidential race, Vice President Kamala Harris, and suggested that the Republican nominee “took a bullet for democracy.”

Brennan asked Turner: “You don’t mean to imply here anything that would suggest Eric Trump’s allegations that Democrats are trying to kill him?”

“No, of course not,” Turner responded. “But I do think that Vice President Harris needs to actively state and acknowledge that her administration is saying a foreign power, which would be an act of war, is actively trying to kill her opponent.”

The attempts on Trump’s life came after a citizen of Pakistan with ties to Iran was arrested and charged with allegedly planning a murder-for-hire scheme targeting Trump, among others. Although the timing of the charges coincided with the first attempt, there was no indication that the two incidents were related.

Turner criticized Harris for what he viewed as a failure to openly condemn the alleged plot.

“I think there’s certainly a role for her to play and for the president to play in this, in both identifying that there are threats against Donald Trump that need to be acknowledged and responded to, to deter,” he said. “I think all the candidates need to de-escalate, certainly in their language.”

But the congressman did acknowledge that a Biden-Harris Justice Department official, Matthew Olsen, the head of the national security division, said the U.S. government has been “intensely tracking Iranian lethal plotting efforts targeting former and current U.S. government officials — and that includes the former president.”

“I would say that we are very concerned — gravely concerned — about Iranian plotting,” Olsen told CBS News in a recent interview.



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Maps show track of Hurricane Milton as forecasters predict landfall in Florida this week

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South Florida prepares for heavy rainfall, flooding in wake of Tropical Storm Milton


South Florida prepares for heavy rainfall, flooding in wake of Tropical Storm Milton

04:09

Hurricane Milton rapidly intensified into a Category 1 storm on Sunday, and it has set its path on Florida’s Gulf Coast.

Forecasters predict Milton will make landfall around the Tampa Bay area on Wednesday, bringing with it upwards of 120 mph winds and drenching an area still reeling from Hurricane Helene.

As of 2 p.m. ET on Sunday, Milton was centered about 290 miles west-northwest of Progreso, Mexico, and about 815 miles west-southwest of Tampa. It had maximum sustained winds of nearly 80 mph and was inching north-northeast at 6 mph.

Path of Hurricane Milton

A map from the National Hurricane Center shows Milton continuing to strengthen into a major hurricane as it approaches Florida’s western coast.

“Milton is forecast to rapidly intensify during the next couple of days and become a major hurricane on Monday,” forecasters said.

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The projected path of Hurricane Milton as of Oct. 6, 2024

NOAA/National Hurricane Center


The storm is expected to remain north of Mexico’s Yucatan peninsula, with heavy rainfall expected as Milton makes its way northeast toward Florida. Tropical storm watches are currently in effect from Celestun to Cancún, Mexico.

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The current wind field for Hurricane Milton as of Sunday, Oct. 6, 2024.

NOAA/National Hurricane Center


The hurricane center said hurricane and storm surge watches could be issued for parts of Florida later Sunday.

Florida officials prepare for more impact

Florida Gov. Ron DeSantis said Sunday that while it remains to be seen just where Milton will strike, it’s clear that Florida is going to be hit hard. “I don’t think there’s any scenario where we don’t have major impacts at this point,” he said.

“You have time to prepare — all day today, all day Monday, probably all day Tuesday to be sure your hurricane preparedness plan is in place,” the governor said. “If you’re on that west coast of Florida, barrier islands, just assume you’ll be asked to leave.”

Tropical Weather
This GOES-16 GeoColor satellite image taken at 4:50 p.m. EDT and provided by National Oceanic and Atmospheric Administration (NOAA) shows Tropical Storm Milton, center, off the coast of Mexico in the Gulf of Mexico, Saturday, Oct. 5, 2024.

NOAA via AP


DeSantis expanded his state of emergency declaration Sunday to 51 counties and said Floridians should prepare for more power outages and disruptions, making sure they have a week’s worth of food and water and are ready to hit the road. 

The Federal Emergency Management Agency, meanwhile, coordinated with the governor and briefed President Biden Sunday on how it has staged lifesaving resources.

“I highly encourage you to evacuate” if you’re in an evacuation zone, said Kevin Guthrie, executive director of the Florida Division of Emergency Management. “We are preparing … for the largest evacuation that we have seen, most likely since 2017, Hurricane Irma. “

As many as 4,000 National Guard troops are helping state crews to remove debris, DeSantis said.

“All available state assets … are being marshaled to help remove debris,” DeSantis said. “We’re going 24-7 … it’s all hands on deck.”



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American and U.K. climbers rescued after 2 days stranded on Himalayan mountains in India

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An American climber was rescued after she and another alpinist from the U.K. were stranded for two days at more than 20,000 feet in the Himalayan mountains.

Michelle Dvorak, 31, and Fay Manners, 37, went missing on Thursday after their equipment and food tumbled down a ravine while trekking up India’s Chaukhamba mountain, CBS News partner BBC reported.

The pair sent an emergency message but search and rescue teams were unable to find them.

Rescued British and U.S. climbers pose for a photo with rescuers in Joshimath, Uttarakhand
Rescued British and U.S. climbers pose for a photo with rescuers in Joshimath, Uttarakhand, India on October 6, 2024.

INDIAN AIR FORCE/Handout via REUTERS


Manners told the BBC they were “terrified” as they tried to make part of the descent down the treacherous mountains without supplies.

“I watched the bag tumble down the mountain and I immediately knew the consequence of what was to come,” she said. “We had none of our safety equipment left. No tent. No stove to melt snow for water. No warm clothes for the evening.”

The terrifying ordeal intensified when it started to snow. They took cover on a ledge while waiting for rescuers.

“I felt hypothermic, constantly shaking and with the lack of food my body was running out of energy to keep warm,” Manners said.

The rescue was made difficult because of the conditions, including bad weather, fog and high altitude.

“The helicopter flew passed again, couldn’t see us. We were destroyed,” Manners told the BBC.

British and U.S. climbers are rescued at the location given as Uttarakhand
British and U.S. climbers are rescued at the location given as Uttarakhand, India on October 6, 2024.

INDIAN AIR FORCE/Handout via REUTERS


On the second day, the pair began to cautiously abseil down the mountain. They spotted a team of French climbers coming toward them. Manners said they shared their equipment and food and contacted the helicopter company with an exact location.

“I cried with relief knowing we might survive,” she said.

The Indian Air Force said in a post on the X social media platform that their helicopter airlifted the climbers from 17,400 feet after “battling two days of bad weather.”

Chaukhamba is a mountain massif in the Garhwal Himalaya in northern India.



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