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3 big CD mistakes to avoid this fall

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Don’t open a CD this fall until you know what these common mistakes are and how to avoid them.

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With interest rates at their highest levels in decades, many savers have been turning to certificates of deposit (CDs) to maximize the returns on their hard-earned money. That’s a smart strategy to utilize, considering that many CDs offer returns that outpace traditional savings accounts and even some high-yield alternatives. That lets you rake in hefty returns — and when you consider the other benefits CDs offer, it’s easy to see why these deposit accounts are so popular.  

Those benefits include the fixed rate of return that CDs offer. Unlike standard savings accounts, which are subject to fluctuating interest rates, CDs lock in a fixed rate for the entire account term. This feature is particularly attractive in the current environment, where rates remain high but are likely to change soon. 

Before rushing to open a CD, though, it’s important to understand that there are a few big mistakes you should steer clear of. By knowing what they are and how to avoid them, you can maximize the potential of your CD investment this fall. 

Want to rake in the returns on your savings? Find out the top CD rates available to you here.

3 big CD mistakes to avoid this fall

If you plan to open a CD soon, make sure you steer clear of these big mistakes:

Waiting too long to open one

One of the biggest mistakes you can make when opening a CD this fall is procrastination. While it might be tempting to try and wait for even higher rates to emerge, the current economic indicators suggest that now is the time to lock your rate in

With inflation cooling over the last four months, the Federal Reserve is now widely expected to conduct its first rate cut in September. When this happens, it could have a significant impact on CD rates, potentially marking the end of the high-yield environment savers have been privy to. By opening a CD now, though, you can secure one of today’s high rates before they start to decline. 

Compare your top CD account options and find the right one for you now.

Focusing solely on the APY

While a high annual percentage yield (APY) is undoubtedly attractive, it shouldn’t be the only factor guiding your CD selection. After all, other aspects can significantly impact the overall value and suitability of the CD. Some key factors to consider beyond the APY include:

The early withdrawal penalty

Life is unpredictable, and you may need to access your funds before the CD matures, so understanding the early withdrawal penalty is crucial. Some banks charge a flat fee, while others may forfeit a certain number of months’ interest. If you’re concerned about needing access to your money, a slightly lower APY with a more lenient early withdrawal policy might be more beneficial in the long run.

The minimum and maximum deposit requirements

CDs often come with both minimum and maximum deposit limits, so ensure that the CD you’re considering aligns with the amount you’re planning to invest. Some high-yield CDs may require substantial minimum deposits, which might not be feasible for everyone. Conversely, if you have a large sum to deposit, be aware of any maximum deposit limits that would reduce your APY.

The term length

The duration of the CD you choose is a critical factor, so be sure to weigh your financial goals and liquidity needs before deciding. While longer terms will lock in your rate for a longer period, guaranteeing your returns for longer, they also mean your money is tied up for an extended period. A shorter-term CD, even with a slightly lower rate, might be preferable if you anticipate needing the funds sooner.

The additional features

Some CDs offer unique features like rate bump-ups or no-penalty withdrawals. These features might make a CD with a slightly lower APY more attractive overall.

Not laddering your CDs

Another mistake that’s easy to make is putting all of your funds into a single CD. While this approach can seem straightforward, it often leads to missed opportunities and reduced flexibility, so you may want to ladder your CDs instead

When you ladder your CDs, you divide your investment across multiple CDs with different maturity dates. For example, instead of investing $10,000 in a single 5-year CD, you might split it into five $2,000 CDs with terms of one, two, three, four and five years. This gives you access to a portion of your investment at regular intervals, ensuring you have access to some of your funds without paying extra fees.

As each CD matures, you also have the opportunity to reinvest at the current market rates. This helps you take advantage of rising rates, should rates tick back up in the future, while protecting against being locked into low rates for extended periods. 

The bottom line

CDs can be a valuable component of a diversified savings strategy, offering stability and guaranteed returns. By avoiding these three common mistakes – waiting too long to open a CD, focusing solely on APY and not laddering your CDs – you’ll be well-positioned to make the most of the current high-interest rate environment this fall.



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Biden’s top hostage envoy Roger Carstens in Syria to ask for help in finding Austin Tice

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Roger Carstens, the Biden administration’s top official for freeing Americans held overseas, on Friday arrived in Damascus, Syria, for a high-risk mission: making the first known face-to-face contact with the caretaker government and asking for help finding missing American journalist Austin Tice

Tice was kidnapped in Syria 12 years ago during the civil war and brutal reign of now-deposed Syrian dictator Bashar al-Assad. For years, U.S. officials have said they do not know with certainty whether Tice is still alive, where he is being held or by whom.

The State Department’s top diplomat for the Middle East, Barbara Leaf, assistant secretary of state for Near Eastern Affairs, accompanied Carstens to Damascus as a gesture of broader outreach to Hay’at Tahrir al-Sham, known as HTS, the rebel group that recently overthrew Assad’s regime and is emerging as a leading power.

Near East Senior Adviser Daniel Rubinstein was also with the delegation. They are the first American diplomats to visit Damascus in over a decade, according to a State Department spokesperson. 

They plan to meet with HTS representatives to discuss transition principles endorsed by the U.S. and regional partners in Aqaba, Jordan, the spokesperson said. Secretary of State Antony Blinken traveled to Aqaba last week to meet with Middle East leaders and discuss the situation in Syria. 

While finding and freeing Tice and other American citizens who disappeared under the Assad regime is the ultimate goal, U.S. officials are downplaying expectations of a breakthrough on this trip. Multiple sources told CBS News that Carstens and Leaf’s intent is to convey U.S. interests to senior HTS leaders, and learn anything they can about Tice.

Rubinstein will lead the U.S. diplomacy in Syria, engaging directly with the Syrian people and key parties in Syria, the State Department spokesperson added. 

Diplomatic outreach to HTS comes in a volatile, war-torn region at an uncertain moment. Two sources even compared the potential danger to the expeditionary diplomacy practiced by the late U.S. Ambassador Christopher Stevens, who led outreach to rebels in Benghazi, Libya, in 2012 and was killed in a terrorist attack on a U.S. diplomatic compound and intelligence post.

U.S. special operations forces known as JSOC provided security for the delegation as they traveled by vehicle across the Jordanian border and on the road to Damascus. The convoy was given assurances by HTS that it would be granted safe passage while in Syria, but there remains a threat of attacks by other terrorist groups, including ISIS.

CBS News withheld publication of this story for security concerns at the State Department’s request. 

Sending high-level American diplomats to Damascus represents a significant step in reopening U.S.-Syria relations following the fall of the Assad regime less than two weeks ago. Operations at the U.S. embassy in Damascus have been suspended since 2012, shortly after the Assad regime brutally repressed an uprising that became a 14-year civil war and spawned 13 million Syrians to flee the country in one of the largest humanitarian disasters in the world.

The U.S. formally designated HTS, which had ties to al Qaeda, as a foreign terrorist organization in 2018. Its leader, Mohammed al Jolani, was designated as a terrorist by the US in 2013 and prior to that served time in a US prison in Iraq. 

Since toppling Assad, HTS has publicly signaled interest in a new more moderate trajectory. Al Jolani even shed his nom de guerre and now uses his legal name, Ahmed al-Sharaa. 

U.S. sanctions on HTS linked to those terrorist designations complicate outreach somewhat, but they haven’t prevented American officials from making direct contact with HTS at the direction of President Biden. Blinken recently confirmed that U.S. officials were in touch with HTS representatives prior to Carstens and Leaf’s visit.

“We’ve heard positive statements coming from Mr. Jolani, the leader of HTS,” Blinken told Bloomberg News on Thursday. “But what everyone is focused on is what’s actually happening on the ground, what are they doing? Are they working to build a transition in Syria that brings everyone in?”

In that same interview, Blinken also seemed to dangle the possibility that the U.S. could help lift sanctions on HTS and its leader imposed by the United Nations, if HTS builds what he called an inclusive nonsectarian government and eventually holds elections. The Biden administration is not expected to lift the U.S.  terrorist designation before the end of the president’s  term on January 20th.

Pentagon spokesperson Pat Ryder disclosed Thursday that the U.S. currently has approximately 2,000 US troops inside of Syria as part of the mission to defeat ISIS, a far higher number than the 900 troops the Biden administration had previously acknowledged. There are at least five U.S. military bases in the north and south of the country. 

The Biden administration is concerned that thousands of ISIS prisoners held at a camp known as al-Hol could be freed. It is currently guarded by the Syrian Democratic forces, Kurdish allies of the U.S. who are wary of the newly-powerful HTS. The situation on the ground is rapidly changing since Russia and Iran withdrew military support from the Assad regime, which has reset the balance of power. Turkey, which has been a sometimes problematic U.S. ally, has been a conduit to HTS and is emerging as a power broker.

A high-risk mission like this is unusual for the typically risk averse Biden administration, which has exercised consistently restrained diplomacy. Blinken approved Carstens and Leaf’s trip and relevant congressional leaders were briefed on it days ago.

“I think it’s important to have direct communication, it’s important to speak as clearly as possible, to listen, to make sure that we understand as best we can where they’re going and where they want to go,” Blinken said Thursday.

At a news conference in Moscow Thursday, Russian President Vladimir Putin said he had not yet met with Assad, who fled to Russia when his regime fell earlier this month. Putin added that he would ask Assad about Austin Tice when they do meet. 

Tice, a Marine Corps veteran, worked for multiple news organizations including CBS News.



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