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Which long-term CD is best with inflation cooling?
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With inflation cooling, you may be thinking about opening a long-term certificate of deposit (CD). After all, cooling inflation could be followed by cooling interest rates and returns on CDs. But, if you open a long-term CD now, you can lock in today’s high rates for years – regardless of what happens with interest rates ahead.
Most finance experts consider a long-term CD to be an account that takes longer than one year to mature. Some popular long-term CDs include those with 18-month, 2-year, 3-year and 5-year terms.
Of course, each of these CD terms comes with its own pros and cons. So, deciding which one fits your needs in the current financial climate can be challenging. Below, we’ll help you decide which long-term CD is best for you below.
Compare leading long-term CDs today.
Which long-term CD is best with inflation cooling?
There are several factors to think about as you decide which long-term CD is best. Here are a few to consider as you choose:
The interest rate environment
Interest rates are high at the moment – pushing returns on deposit accounts like CDs up. And, today’s high rates are driven by the fact that the Federal Reserve’s federal funds rate is frozen at a 23-year high. But that high benchmark interest rate isn’t going to last forever.
Interest rates are cyclical and the cycles they go through are often the result of changes in inflation. And, inflation has been cooling recently. If it continues to do so, it could give the Federal Reserve a reason to start cutting its federal funds rate – a move that may be followed by financial institutions cutting rates on deposit and other financial accounts.
With the threat of rate cuts looming, it may be better to opt for the longest term that fits with your financial plan. So, if you can comfortably lock your money up for five years, doing so may be your best option. But, if you can only lock your money up for 18 months, an 18-month term may be fitting.
Lock in a competitive return for the long term while you still can.
The rate difference between your options
CDs with different terms usually offer different APYs. And currently, those with shorter terms typically offer higher rates than those with longer terms. That rate difference is worth consideration.
If you’re looking for the highest APY possible, an 18-month term may be the best option for you. Then again, while a 5-year CD may offer a lower yield than its shorter-term counterparts, it may be worth considering if you’d like to lock in today’s high returns for a longer period of time.
Your financial goals
You should consider your financial goals when determining which long-term CD is best for you. Keep in mind that you’ll need to lock your money in the CD through its entire term. So, it’s important to think about when you might need the money you lock up and plan for that need as you choose your term.
For example, say you want to put a down payment on a home in three years. In this case, the best long-term CD to consider would be one with a term equal to your goal’s timeframe. When you do, you’ll lock your money up for a few years – helping to ensure that you don’t access your savings early. And, your CD will mature at about the same time that you’re ready to buy your home.
Find a long-term CD that matches your financial goals today.
The bottom line
No matter which term you choose, locking in today’s high returns with a long-term CD is worth consideration. After all, today’s high rates won’t be available forever. But, as you decide the term you’ll lock in, you should consider today’s interest rate environment and the potential rate cuts that are ahead, the rate difference between your options and your financial goals. Compare today’s leading long-term CDs now.
NEW YORK – The man accused of killing three people when drove drunk into a crowd on the Lower East Side on July 4th was arraigned on a host of charges Saturday.
Daniel Hyden of Monmouth Junction, N.J. is charged with aggravated vehicular homicide, aggravated vehicular assault, manslaughter, assault and operating a motor vehicle while intoxicated charges. Hyden was driving with a suspended license, prosecutors said.
According to prosecutors, Hyden, 44, drove a Ford F-150 pickup truck into the crowd at Corlears Hook Park just before 9 p.m. local time. He allegedly ran through a stop sign at the intersection of Water and Cherry Streets, drove up onto the sidewalk, slammed through the chain link fence, and into the crowd.
Eleven people were killed or injured, prosecutors said. The three people killed have been identified as Lucille Pinkney, 59, and her son Herman Pinkney, 38, and Ana Morel, 43. Another person was critically injured, and seven others hospitalized. The youngest victim was 11, according to prosecutors.
Responding police officers say they found Hyden on the ground next to the driver’s-side door, wearing pants but no shirt or shoes. He had bloodshot eyes, was stumbling and there was “a strong odor of an alcoholic beverage on his breath.”
“I hope we get justice”
Photos provided
On Friday, Family members of the victims returned to the scene, some breaking down in tears.
“I hope we get justice for my brother and my mother,” Diamond Pinkney said. “Herman, I love you. I’m going to do you proud.”
“We’re all devastated with this. It breaks my heart, and I’m so sad about it,” neighbor Nereida Garcia said.
Four people were fatally shot and three people were injured in a mass shooting in Kentucky on Saturday, the Florence Police Department said in a statement.
Officers arrived at a private residence at 2:51 a.m. to see seven people shot – and found out the suspect had fled the scene in his car. Police said they located the fleeing suspect and tried to nab him during a traffic stop, but he continued to drive.
A chase ensued, police said, and only ended when the suspect’s car drove into a ditch off the roadway. The suspect was found with a self-inflicted gunshot wound. He was taken to the hospital where he was pronounced dead, police said.
Three of the victims were taken to UC Health Hospital. They are currently listed in critical but stable condition, officials said.
Everyone was attending a birthday pool party, Florence Church of God, a local church, posted on its social media. One of their congregation’s sisters asked for prayers for her friend whose daughter was killed in the shooting.
“A man came in uninvited on a birthday pool party and killed four people,” the church’s Pastor Campbell wrote.
One of them was a friend’s daughter, the pastor wrote, and “her granddaughter is in the hospital with gunshot wounds.”
This is a breaking news story. Please check back for updates.
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