Connect with us

CBS News

4 things to know about CD rates right now

Avatar

Published

on


gettyimages-1437707163.jpg
CD accounts offer a great way to grow and protect your money right now but the long-term forecast is unclear.

Getty Images


Borrowers hoping for some imminent relief were disappointed this week after the latest report from the Bureau of Labor Statistics showed inflation higher than expected in January. While that 3.1% rate was lower than December’s 3.4%, it’s still holding steady and significantly higher than the Federal Reserve’s target 2% goal. Higher inflation means elevated interest rates and, with inflation inconsistent, rates will stay put, meaning continued pain for those looking for mortgages, credit cards and other credit products.

However, there has been one major benefit of today’s rate climate: higher rates on savings accounts. For much of the last year, it’s been a great time to open a certificate of deposit (CD) account. That said, to get the most from one of these accounts now, it behooves savers to understand some key components of today’s CD rate environment. Below, we’ll detail four of these considerations.

Ready to get started? See how much more you could earn with a top CD here now.

4 things to know about CD rates today

Here are four important things about today’s unique CD rate climate.

Rates are high

CD rates today are high. How high, exactly, will depend on the amount you deposit, the term of your account and the lender you choose. But it’s not difficult to find a CD with a rate of 6% or higher right now. Some savers may even qualify for an account with a 7% interest rate. 

That’s a significant amount of interest that can be earned simply by transferring funds from one account type to another — resulting in hundreds of extra dollars earned each year. Compared to the minimal 0.47% that can be obtained with a regular savings account, it’s clear that you’re losing money by not moving some of your funds into a top CD now.

Get started with a high interest-earning CD account online here.

Rates will stay elevated a bit longer

The forecast for CD rates toward the end of 2023 was unclear, with many hoping for a cut to the benchmark interest rate as soon as March. And while that cut may still come this year, it’s unlikely to be next month after this week’s disappointing inflation report. 

As a result, rates on CDs will likely stay elevated a bit longer. This gives savers more time to explore their options, ideally locating a CD with the best mix of rates and minimal (or no fees). But remember that the longer you wait, the more time will pass without earning today’s high CD rates, so it’s smart to move relatively quickly.

Short-term CD rates are a bit better than long-term ones

In a reversal from historic trends, the best CD rates right now are being offered on short-term CDs (12 months or less) versus long-term ones. While long-term CDs generally reward savers with more money in exchange for locking their money away for an extended period, that’s not the case right now. 

The volatile rate environment has instead left short-term CDs with elevated rates and long-term CDs with rates slightly lower. While both are high compared to recent years, the very best CD rates right now will generally be found with short-term accounts so keep that in mind as you hunt for the best account.

The long-term forecast is unclear

As mentioned, there was much discussion about the future of CD rates toward the end of last year as inflation finally seemed under control and rate cuts looked imminent. But that forecast is murkier now following two consecutive disappointing inflation reports. 

And while the Fed hasn’t increased rates since last July, they haven’t cut them either. This is good news for CD account holders who can still earn a nice return right now — and are unlikely to see a dramatic rate cut affect their earnings long-term either.

Learn more about today’s CD options here.

The bottom line

in today’s unique rate environment, savers need to be a bit more diligent about where they store their money. CDs are one great option, thanks to significantly higher rates. And those rates are expected to stay high for at least a few more months. But rates on short-term CDs are generally better than long-term ones right now, something savers should keep in mind as they search for the best account. They should also know that the long-term CD rate forecast is unclear, meaning that now could be an opportune time to take advantage and start earning more interest.



Read the original article

Leave your vote

Continue Reading

CBS News

Former Trump national security adviser says next couple months are “really critical” for Ukraine

Avatar

Published

on


Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.

McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.

With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022. 

Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.

1732468274686.png
H.R. McMaster on “Face the Nation with Margaret Brennan,” Nov. 24, 2024.

CBS News


McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”

“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”

McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.

“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said. 

On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”

McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.

Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.

More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.” 

Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”



Read the original article

Leave your vote

Continue Reading

CBS News

Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments

Avatar

Published

on


Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments – CBS News


Watch CBS News



Democratic Sen. Chris Van Hollen of Maryland, who last week backed Sen. Bernie Sanders’ bill to block U.S. sending arms to Israel, told “Face the Nation with Margaret Brennan” that President Biden ” is not fully complying with American law” on sending arms to Israel.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use”

Avatar

Published

on


Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use” – CBS News


Watch CBS News



Rep.-elect Sarah McBride, the first openly transgender person to be elected to Congress, tells “Face the Nation with Margaret Brennan” that as Republicans have sought to put forward a bathroom ban in the Capitol, she “didn’t run for the United States House of Representatives to talk about what bathroom I use.”

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.