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4 big CD account mistakes to avoid going into 2025
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A certificate of deposit (CD) account has historically been one of the safest ways to protect your money. Deposit a certain amount of money in the account for a predetermined term and you’ll earn a fixed rate of interest upon maturity. This predictability was especially helpful in 2022 through much of 2024. With inflation problematic and borrowing costs high, elevated returns on CDs allowed savers to offset some of the economic burden felt elsewhere.
Recent months, however, have reduced what savers can earn with these accounts. While still much higher than the average savings account (which is now 0.43% compared to CDs with interest rates approaching 5%), returns on these accounts are expected to continue to decline as the Federal Reserve continues its rate-cut campaign. Against this backdrop, then, savers considering a CD should know which steps to take – and which mistakes to avoid – going into 2025.
Considering a CD now? See how much more you could be earning with an account here.
4 big CD account mistakes to avoid going into 2025
To improve your chances of CD success in the new year, you should avoid making the following mistakes:
Delaying an account opening
Today’s CD rates are still attractive but not what they were prior to the Fed’s two rate cuts issued earlier this year – and they’re unlikely to be as beneficial after the expected December rate reduction. Delaying an account opening, then, would be a major mistake. By acting aggressively prospective account holders can lock in one of today’s high rates and keep it even as the wider rate climate continues to cool.
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Letting your current CD automatically rollover
Do you already have a CD account? Then be sure to avoid having it automatically rollover upon its maturity. That could cause your funds to get locked into a new, lower-interest-earning account. Instead, utilize the grace period time between your account maturity date and the new rollover date to look for alternative, potentially better places for your funds.
Opting for the higher short-term CD rate over the lower long-term one
It’s understandable for savers to simply look for the highest interest rate possible. But that would be a big mistake when it comes to CDs, especially right now. What value will a high CD rate truly offer if it expires in three or six months, especially if rates drop again in the interim? Instead, opt for the slightly lower rate that is now available with many long-term CDs. Not only will you earn more interest with this approach but you’ll lock in extended protection for your funds while the economy recalibrates.
Using your current lender without first shopping around
In 2022 or 2023, high CD rates were ubiquitous and easy to secure. This meant that using your local bank with its physical branch locations was often suitable. But with rates dropping a bit and attractive offers less prevalent, it would be a mistake to automatically use your current bank or lender without first shopping around. If you use an online bank, instead, you may be able to lock in a significantly higher interest rate. You won’t know about the alternatives, however, until you first start shopping around.
The bottom line
You should always take a strategic approach to where you put your money, particularly if you’re working with CD accounts in today’s unique economic climate. By avoiding these mistakes, you’ll better be able to set yourself up for financial success both now and, depending on the CD term, multiple years ahead.
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MINNEAPOLIS — After announcing that he was stepping away from broadcasting earlier this month, NFL Hall of Fame wide receiver Randy Moss informed fans Friday that he has been diagnosed with cancer.
In an Instagram livestream Friday afternoon, Moss told fans worried about his health that he’s a “cancer survivor.” He disclosed that he spent six days in the hospital and underwent surgery. He thanked his team of doctors and all those who prayed for him.
“I am a cancer survivor,” Moss said. “Some trying times, but we made it through.”
Moss said doctors found cancer in the bile duct “right between the pancreas and the liver.”
“I didn’t think I would ever be in this position, as healthy as I thought I was,” he said.
Andy Clayton-King / AP
Moss, 47, stepped away from his broadcasting role at ESPN earlier this month, with the network citing a “personal health challenge” as the reason.
The Minnesota Vikings legend first revealed his health issues to fans on Instagram on Dec. 1, saying he “has been battling something internal” and asking for prayers.
Since then, Moss has received an outpouring of support from media colleagues, former players and the Vikings organization.
“I just want to, on behalf of the whole Minnesota Vikings organization, just send him our well wishes and support,” Vikings head coach Kevin O’Connell said. “We love Randy and know our fanbase feels the same way.”
Moss played 14 seasons in the league with the Vikings, New England Patriots, Oakland Raiders, Tennessee Titans and San Francisco 49ers and is fourth all-time in receiving yards (15,292) and second in receiving touchdowns (156). He retired in 2012, joined ESPN in 2016 and entered the Pro Football Hall of Fame in 2018.
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Georgia judge denies motion to overturn guilty plea from former Trump lawyer in election interference case
A Georgia judge has rejected former Trump campaign campaign lawyer Kenneth Chesebro’s push to invalidate his guilty plea in the Fulton County election interference case.
Chesebro was one of 19 defendants charged in the August 2023 indictment accusing former President Trump and others of trying to illegally overturn his 2020 election loss in Georgia.
Chesebro pleaded guilty in October 2023 to a conspiracy to file false documents charge. He was sentenced under Georgia’s First Offender Act, which allows the charge to drop off his record if he successfully completes probation with no violations.
Earlier this month, Chesebro’s attorney asked Fulton County Superior Court Judge Scott McAfee to throw out the plea after he dismissed the charge Chesebro pleaded guilty. His attorneys argued the plea should be thrown out because it violates his rights to due process.
But McAfee dismissed the motion calling it, “procedurally defective in more ways than one.” He noted that Chesebro “has already submitted a plea in response to this indictment — one of guilt.”
He also said that Chesebro’s motion was not a “valid motion in arrest of judgment” — Chesebro was calling on McAfee to stop the judgment because of a defect. McAfee pointed out that under the First Offender Act, Chesebro had pleaded guilty before “an adjudication of guilt” and “without entering a judgment of guilt.” So, McAfee reasoned in the ruling, “No final judgment occurs ….Therefore, there can be no arrest of judgment here.”
The indictment accused Chesbro of proposing, in a memo to Trump allies, “a bold, controversial strategy” to overturn the election: appoint alternate electors loyal to Trump in several states.
This proposal and at least one other memo he penned were included in the Georgia indictment as overt acts “in furtherance of the conspiracy.” The seven original counts against him stemmed from the plan to submit a slate of fake electors from Georgia.
The Fulton County election interference case against the president-elect is on hold after the Georgia Court of Appeals temporarily halted the proceedings in June. The appeals court is reviewing a trial judge’s ruling that allowed Fulton County District Attorney Fani Willis to continue prosecuting the case if special prosecutor Nathan Wade resigned. Trump and several of his co-defendants sought to remove Willis from the case after it was revealed she had a romantic relationship with Wade. Trump and others accused Willis of improperly benefiting from the relationship, an allegation she denies.
