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3 CD account types to consider before the July inflation report
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The next inflation report is scheduled to be released on July 11, detailing the state of inflation for June 2024. And if the report shows another drop in inflation, as the previous two months did, it will again reset expectations for a cut to the federal funds rate.
While many had expected multiple cuts to that rate earlier this year, it now appears likely that only one will come in 2024. But while a single rate cut could help borrowers, it will hurt the returns savers have been used to in recent years, particularly with certificates of deposit (CD) and high-yield savings accounts. Even a hint at an upcoming formal rate cut could result in lenders offering lower rates on these savings vehicles than they have been.
Against this backdrop, there’s a compelling case for opening a long-term CD ahead of this week’s inflation report to lock in today’s readily available elevated rates. But which CD term should savers consider? While the answer to this question is personal, there’s a compelling case to be made for select terms right now. Below, we’ll break down three of them.
See what you could be earning with a top long-term CD online now.
3 CD account types to consider before the July inflation report
Ready to lock in today’s high rates before they start falling? Here are three CD account types to consider opening before the July inflation report is released.
1-year CDs
Short-term CDs are considered to be those that mature in 12 months or less. But in the face of today’s unpredictable rate climate, a 1-year CD could provide the exact mix of predictability and high rates that most savers are looking for. By opening a 1-year CD now, you could lock in a rate of 5% or higher on your money, resulting in hundreds and potentially thousands of dollars worth of earned interest, depending on the deposit that’s made. And your funds won’t be locked away for so long that you’ll need to account for an early withdrawal penalty, as many savers can afford to leave some money untouched for the full year term. The maturity date will also allow you to explore other, potentially better savings options sooner than if you had locked your money away for a significantly longer time.
See how much you could make with a 1-year CD here now.
18-month CDs
Similar to the benefits of opening a 1-year CD now, an 18-month one may also be worth considering. Savers can lock in a rate of around 5% now, allowing them to earn the same amount of interest as they would on the 1-year CD option for an extra six months. This option is particularly beneficial for those savers who want to capitalize on today’s high rates but want to do so for a while longer while the repercussions of inflation and other political and geopolitical factors have a chance to work their way through the broader economy.
3-year CDs
3-year CDs may not come with the rates that their shorter-term counterparts do (a reversal from historic trends) but with rates around 4.50% or higher right now, they’re still an attractive way for savers to earn an elevated return for years to come. While no one knows where CD rates will be in three years, recent volatility in the market shows that they could drop significantly (they were hovering around 1% in 2020 and 2021, for example). So for savers who can afford to leave a portion of their money untouched for a few years, a 3-year CD could be the way to do so. By opening one of these accounts now savers will earn an elevated rate for multiple years, regardless of any volatility in the market that takes place this year – or in 2025 or 2026, either.
Get started with a top, long-term CD online today.
The bottom line
The rate environment could soon be changing and CD accounts won’t be immune from those developments. Understanding this, then, and ahead of the new inflation report that could further affect rates on these accounts, savers should consider locking in a long-term CD rate now. With a 1-year, 18-month and 3-year CD all offering unique advantages now, there are multiple ways savers can protect themselves against rate cuts for the future. But they’ll need to be proactive and start shopping for the best rates and terms now. The window of opportunity to earn today’s high CD rates could soon be closing.
A judge in France on Thursday found the former husband of Gisèle Pelicot, who admitted to drugging and raping her repeatedly over the course of almost a decade and inviting dozens of other men to assault her as well, guilty of aggravated rape. Over the course of her trial, Pelicot — who insisted her full name be published and proceedings be made public — has been praised for her courage and become a symbol of the fight against sexual violence in France and around the world. The judge on Thursday was reading out verdicts for dozens of other men also accused of raping her.
Pelicot arrived Thursday at the court in Avignon, southeast France, where crowds had gathered outside holding signs saying: “Thank you for your courage.”
The trial began on Sept. 2, and almost every day, Pelicot came face to face with her former husband, Dominique, or one of the 49 other men charged with raping her. One other man faced a charge of aggravated sexual assault. She insisted that videos submitted as evidence, made by her ex-husband showing men sexually assaulting her while she appeared to be unconscious, be shown in open court.
The assaults took place between 2011 and 2020, when Dominique Pelicot was taken into custody. Police found thousands of photos and videos of the abuse on his computer drives, which helped lead them to other suspects. Some of the men testified they thought the unconscious woman was OK with it, or that her husband’s permission was enough.
“Gisèle Pelicot thinks that this shock wave is necessary, so that no one can say after this: ‘I didn’t know this was rape,'” her attorney, Stéphane Babonneau, told The Associated Press.
“It’s not for us to feel shame — it’s for them,” Pelicot said in court, referring to the attackers. “Above all, I’m expressing my will and determination to change this society.”
Controversial French laws
Pelicot’s case triggered protests across France, and there was hope among some demonstrators that the case could lead to changes in controversial French laws governing sexual consent.
France introduced a legal age of sexual consent in 2021 after a public outcry over the rape of an 11-year-old schoolgirl by a man who was initially convicted on a lesser charge. Since then, sex with anyone under the age of 15 has been viewed as non-consensual, but French law does not refer to consent in cases involving older victims.
Under French law, rape is defined as penetration or oral sex using “violence, coercion, threat or surprise,” without taking consent into account, according to the Reuters news agency. Prosecutors must, therefore, prove an intention to rape if they are to be successful in court, legal experts told Reuters.
Just 14% of rape accusations in France lead to formal investigations, according to a study by the Institute of Public Policies.
“Why don’t we manage to obtain convictions? The first reason is the law,” legal expert Catherine Le Magueresse told Reuters. “The law is written in such a way that victims must comply with the stereotype of a ‘good victim’ and a ‘true rape’: an unknown attacker, use of violence, and the victim’s resistance. But it is only true for a minority of rapes.”
“I’m trying to understand”
Speaking in court during the trial, Pelicot, who is 72, talked about how she had thought she was in a loving marriage with her husband and would never have guessed that he was drugging her.
“We would have a glass of white wine together. I never found anything strange about my potatoes,” Pelicot told the court.
“We finished eating. Often when it’s a football match on TV, I’d let him watch it alone. He brought my ice cream to my bed, where I was. My favorite flavor — raspberry — and I thought: ‘How lucky I am. He’s a love.'”
She said she didn’t have any sensation of being drugged.
“I never felt my heart flutter. I didn’t feel anything. I must have gone under very quickly. I would wake up with my pajamas on,” Pelicot told the court, adding that she would sometimes wake up “more tired than usual, but I walk a lot and thought it was that.”
“I’m trying to understand,” she said, “how this husband, who was the perfect man, could have got to this.”
The International Brotherhood of Teamsters says workers at seven Amazon facilities will begin a strike Thursday morning in an effort by the union to pressure the e-commerce giant for a labor agreement during a key shopping period.
The Teamsters say the workers, who authorized walkouts in the past few days, are joining the picket line after Amazon ignored a Dec. 15 deadline the union set for contract negotiations. Amazon says it doesn’t expect any impact on its operations during what the union calls the largest strike against the company in U.S. history.
The Teamsters say they represent nearly 10,000 workers at 10 Amazon facilities, a small portion of the 1.5 million people Amazon employs in its warehouses and corporate offices.
Amazon is ranked No. 2 on the Fortune 500 list of the nation’s largest companies.
At a warehouse in the New York City borough of Staten Island, thousands of workers who voted for the Amazon Labor Union in 2022 and have since affiliated with the Teamsters. At the other facilities, employees – including many delivery drivers – have unionized with them by demonstrating majority support but without holding government-administered elections.
The strikes happening Thursday are taking place at an Amazon warehouse in San Francisco and six delivery stations in southern California, New York City, Atlanta and the Chicago suburb of Skokie, Illinois, according to the union’s announcement. Amazon workers at the other facilities are “prepared to join” them, the union said.
“Amazon is pushing its workers closer to the picket line by failing to show them the respect they have earned,” Teamsters General President Sean M. O’Brien said in a statement.
“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed. We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it,” he said.
The Seattle-based online retailer has been seeking to re-do the election that led to the union victory at the warehouse on Staten Island, which the Teamsters now represent. In the process, the company has filed a lawsuit challenging the constitutionality of the National Labor Relations Board.
Meanwhile, Amazon says the delivery drivers, which the Teamsters have organized for more than a year, aren’t its employees. Under its business model, the drivers work for third-party businesses, called Delivery Service Partners, who drop off millions of packages to customers everyday.
“For more than a year now, the Teamsters have continued to intentionally mislead the public – claiming that they represent ‘thousands of Amazon employees and drivers’. They don’t, and this is another attempt to push a false narrative,” Amazon spokesperson Kelly Nantel said in a statement. “The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union.“
The Teamsters have argued Amazon essentially controls everything the drivers do and should be classified as an employer.
Some U.S. labor regulators have sided with the union in filings made before the NLRB. In September, Amazon boosted pay for the drivers amid the growing pressure.
NEW YORK — The Teamsters union is launching a strike against Amazon at numerous locations across the country, including in Maspeth, Queens.
The Teamsters are calling it the largest strike against Amazon in United States history, and it’s set to begin at 6 a.m. Thursday. In addition to New York City, workers will be joining picket lines in Atlanta, Southern California, San Francisco and Illinois.
In a video announcement released Wednesday night, workers voiced their frustrations.
“Us being strike ready means we’re fed up, and Amazon is clearly ignoring us and we want to be heard,” one worker says in the video.
“It’s really exciting. We’re taking steps for ourselves to win better conditions, better benefits, better wages,” another worker in the video says.
The union says it represents about 10,000 Amazon employees and that Amazon ignored a deadline to come to the table and negotiate. The $2 trillion company doesn’t pay employees enough to make ends meet, the union asserts.
At the height of the holiday season, many are wondering what this means for packages currently in transit.
Teamsters President Sean O’Brien said, “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed.”
Amazon says Teamsters are misleading the public
An Amazon spokesperson says the Teamsters are misleading the public and do not represent any Amazon employees, despite any claims.
“The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union,” the spokesperson said in a statement.
An Amazon representative says the company doesn’t expect operations to be impacted.
