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Why you should open a long-term CD before the July inflation report
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Certificate of deposit (CD) accounts have been smart and effective ways to grow your money in recent years, thanks to inflation and a higher rate climate. As a result, rates on CDs grew exponentially from where they were just a few years ago. Now, it’s not difficult to find an account with a rate of 4% or higher.
But CDs don’t operate precisely like other savings vehicles do.
Savers will need to commit to leaving their money in the account for the full CD term or risk having to pay an early withdrawal penalty for taking it out before maturity. And, there are multiple terms to choose from, with short-term ones lasting less than 12 months and long-term options lasting multiple years. But with the next inflation report scheduled for release on July 11 (detailing June’s inflation rate), some savers may be wondering which option is better for them now. For many, the answer is clear. Below, we’ll explain why you should open a long-term CD before the July inflation report is released.
See how much more interest you could be earning with a top long-term CD here.
Why you should open a long-term CD before the July inflation report
Here are three reasons why you should strongly consider opening a long-term CD before the next inflation report is released.
Rates are only slightly lower than short-term CDs
Sure, rates on short-term CDs are slightly higher than long-term accounts right now (a direct reversal from historic trends). But the difference is negligible (generally less than a full percentage point). So it makes sense to take advantage now. You could potentially earn hundreds and even thousands of dollars right now, depending on the amount you deposit and the rate you lock in. CD rates change often, however, so you should shop around and consider being proactive while rates this high are still readily available.
Get started with a top long-term CD here now.
Rates will likely fall soon
As inflation continues to fall, a cut to the federal funds rate becomes more likely. And while those cuts may not come as often as many anticipated at the start of the year, there’s likely to be at least one cut before the end of 2024. When that comes, rates on savings vehicles like CDs will fall in tandem. So don’t wait for that to happen. And remember that even a hint at an imminent rate cut could reduce what lenders offer on these products, so there may be less time to take advantage of today’s high rates than it seems.
Your returns will be locked – and predictable
CD rates, as mentioned, are locked and will remain the same for the full CD term. That’s a major advantage right now in the face of rate cuts. No matter what rates drop to during your long-term CD account lifespan, you’ll still earn the high rate you opened the account with. These returns, unlike those that can be earned with variable-rate high-yield savings accounts, will be both locked and predictable. In an evolving rate climate that’s a major advantage when compared to other popular alternatives.
The bottom line
Whle both short-term and long-term CDs are advantageous to open now, there’s a strong argument to be made for pursuing a long-term one as soon as possible, preferably before the next inflation report release. Rates on these accounts are still comparable to many alternatives (even if they’re slightly lower). And considering that these rates are locked and that, if you wait, you could be shopping for a CD in a lower rate climate, it makes sense to lock in the highest rate long-term CD you can find now. Just be careful to only deposit an amount you’re comfortable parting with for the full CD term or you could wind up paying the early withdrawal penalty to regain access to your funds.
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.