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2 CD account types to avoid this week (and 2 to open right now)

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It may be a good idea to lock in today’s interest rates with a long-term CD. 

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Considering the state of the economy and the elevated interest rates financial institutions currently offer on deposit accounts, you may consider opening a certificate of deposit (CD). Some experts expect interest rates to fall soon with recent inflation reports showing cooling price growth in the United States. And, with the next inflation report expected July 11, now may be the time to act.

Since CDs are fixed-rate savings vehicles, you can use them to lock in today’s high rates. And, depending on the type of CD account you open, you can lock in those rates for months or even years to come. 

But, while opening a CD may be a good decision in today’s economic climate, these accounts aren’t all equal. In fact, there are a couple of types of CDs you should avoid this week. Find those, and a few that you should open, below. 

Lock in today’s high returns with a long-term CD now

2 CD account types to avoid this week (and 2 to open right now)

Given the current interest rate environment, one in which short-term CDs pay more than their long-term counterparts, you may be tempted to choose short-term options. But, those are precisely the CDs you should probably avoid right now. 

“I would favor a longer-term CD vs. shorter-term CDs, due to the current economic environment,” explains Al Faber, CFP, senior wealth advisor at the financial planning firm, Woodson Wealth Management. “The Federal Reserve has indicated that they are more likely to decrease short-term rates, rather than increase rates in the next year or two.” And, short-term CDs don’t lock in today’s high interest rates for long enough. 

Here are some specific CD terms you should avoid this week:

3-month CDs

3-month CDs can be enticing at the moment. Some leading accounts offer APYs over 5%. But, opting for one of these accounts could be a bad idea. If you open a 3-month CD this week, your account will mature in October. And, unless you want to be penalized, you’ll need to leave your money in the account until then. But, that could pose some interest rate risk. 

Recent reports showed cooling inflation in the United States. And, if that cooling continues, the Federal Reserve could cut interest rates soon. If that happens before your CD expires, and you plan on rolling your money into another account, you may be forced to accept a lower interest rate on your savings at that time. 

Opt for long-term CDs over their short-term counterparts now

6-month CDs

6-month CDs may pose more interest rate risk than their 3-month counterparts. Many experts argue that the Federal Reserve will cut interest rates at least once this year. And, if you opt for a 6-month CD this week, your account won’t mature until January 2025.

So, if these experts are right, and you opt for a 6-month term, the risk of having to renew your CD at a lower interest rate than currently available rates upon its maturity is high. So, you shouldn’t let the high returns these accounts provide coerce you into opening one right now. 

2 CD account types to open right now

Although opening a short-term CD, like one with a 3-month or 6-month term, should be avoided now, long-term CDs are appealing ways to save

“A long-term CD will continue to earn interest at the locked-in rate for a longer period without being affected by decreases in interest rates, giving you a stable ROI,” explains Aaron Cirksena, founder and CEO of the financial planning firm, MDRN Capital.

Here are two CD account types you should consider opening immediately:

3-year CDs

Today’s leading 3-year CDs offer APYs as high as 4.60% or higher. Since CDs come with fixed interest rates, taking advantage of a 3-year term means you’ll earn today’s high rates for years to come. In fact, if you opened one of these accounts today, you’d be locking in today’s strong returns until July 2027. 

5-year CDs

Returns on 5-year CDs are impressive, too. Some financial institutions currently offer APYs as high as 4.80% on these long-term savings vehicles. And, if you open one today, it won’t mature until July 2029. 

Since interest rates are cyclical, and the current upward cycle seems to be ending, a 5-year CD can help you lock in today’s returns at their peak and enjoy them regardless of what happens with rates over the next half-decade.  

Open a 5-year CD to lock in today’s rates now

The bottom line

The Federal Reserve is expected to cut interest rates relatively soon. So, short-term CDs, like those with 6-month terms or shorter can be risky. When they mature, you may need to accept lower rates on future savings vehicles. Instead, opt for long-term CDs, like those with multiple-year terms, as these lock in today’s high rates for years. Compare today’s leading long-term CDs here



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Undersea cables cut or damaged, and European governments hint at possible Russian sabotage

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Two undersea cables carrying internet data deep in the Baltic Sea have been damaged, European telecommunications companies have said, drawing warnings from European governments of possible Russian “hybrid warfare” targeting global communications infrastructure. 

The foreign ministers of Finland and Germany said in a joint statement on Monday that a cable connecting the two countries had been cut and that the incidents had raised suspicion of possible sabotage. 

“A thorough investigation is underway. Our European security is not only under threat from Russia’s war of aggression against Ukraine, but also from hybrid warfare by malicious actors,” the ministers said, without blaming any particular entity for the possible sabotage.

Fiber optic network of the company GlobalConnect
A file photo shows a fiber optic cable being pulled ashore by a cable-laying ship in the Baltic Sea, in Sassnitz, Germany, Nov. 29, 2023. 

Stefan Sauer/picture alliance/Getty


The Finnish company Cinia confirmed Monday that its submarine cable between Finland and Germany was damaged. The cable is about 730 miles long and connects telecommunications networks in central Europe to Finland and other Nordic countries.

“The details of the fault are yet not known and are currently being investigated,” the company said in a statement on its website. 

Swedish company Arelion confirmed to CBS News on Tuesday that one of its cables was also damaged. 

“We can confirm that one of our subsea fiber cables — the one between Gotland, Sweden and Šventoji, Lithuania — is damaged. The issue was detected on November 17, and we currently do not know what caused it as we have not been able to examine the cable,” Arelion spokesperson Martin Sjögren told CBS News.

“Arelion is in contact with Swedish authorities and the Swedish Armed Forces regarding the incident. The cable will be repaired over the next few weeks depending on weather conditions,” he said.

Audrius Stasiulaitis, a spokesperson for the Swedish multinational telecom company Telia, which uses and operates the Arelion cable, said the firm believed the cable was physically damaged.

“We can only speculate on what has happened, but as far as we see, it is not affected by equipment failure and we presume it’s physical damage,” he told CBS News over the phone on Tuesday. 

The damage to the cables comes after reports over the past year that Russia may be targeting key infrastructure connecting Nordic countries. 

An April 2023 joint investigation by the public broadcasters of Sweden, Denmark, Norway and Finland found that Moscow was operating a fleet of suspected intelligence vessels in Nordic waters as part of a Kremlin campaign potentially aimed at targeting underwater cables and wind farms.

There have been attacks on European infrastructure since Russia launched its full-scale invasion of Ukraine 1,000 days ago. 

In September 2022, the Nord Stream 1 and Nord Stream 2 pipelines, both designed to carry natural gas from Russia to Germany under the Baltic Sea, were damaged by explosions.


U.S., European Union accuse Russia of sabotaging Nord Stream pipelines

03:36

Both Ukraine and Russia denied any involvement in the explosions. In August, German media reported that prosecutors had issued an arrest warrant for a Ukrainian man over the pipeline attacks. 

Sweden and Finland have both joined the NATO military alliance over the past two years, as the war in Ukraine fuels concern about Russia’s possible intentions, and just this week, both countries updated their war preparation guidance and published online booklets for citizens to prepare for the eventuality of a war or other crisis.



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Trump win fuels discussion of Israel annexing the West Bank. Here’s what that means.

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In the wake of former President Donald Trump’s re-election, Israel’s far-right minister of finance suggested the country would look to annex the occupied West Bank in 2025. Here’s what you need to know:

What is the West Bank?

The West Bank is an area of land on the west bank of the Jordan River, which is part of the former British-mandated territory of Palestine. It is surrounded by Israel on three sides — the north, west, and south — and it borders the country of Jordan on its east, across the river.

After the departure of British forces in 1948 when the modern state of Israel was created, Arab forces entered and retained the West Bank, and the city of Jerusalem was divided into two sectors: the Israeli west and the Jordanian east.

During the Six-Day War in 1967, Israel occupied the West Bank and established a military administration there. Israel claimed East Jerusalem as part of its own territory, but fighting between the Israelis and the region’s Palestinian inhabitants — who live with significant restrictions on their movement and other aspects of life under the decades-long occupation — has continued.

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A map shows Israel and the Palestinian territories of Gaza and the West Bank, and Israel’s borders with neighboring nations Lebanon, Syria, Jordan, and Egypt’s Sinai Peninsula (not labelled) to the southwest.

Getty/iStockphoto


Hamas, designated a terrorist organization by the United States and Israel, decisively won a 2006 West Bank parliamentary election over the Western-backed Fatah faction, led by Mahmoud Abbas, which had been administering the Palestinian Authority. The Hamas victory brought sanctions and boycotts by the U.S., the EU and Israel of the new, Hamas-led joint Palestinian leadership.

In 2007, Abbas dissolved the Hamas-led administration in the West Bank and created an emergency cabinet that favored Fatah. The power struggle between the two Palestinian factions led to a split between the West Bank and Gaza, with Western powers supporting the Fatah-administered West Bank diplomatically and economically, while blockading the Hamas-run Gaza Strip.

How could U.S. policy change during the second Trump administration?

The longstanding position of the United States has been support for a two-state solution to the conflict between Israelis and Palestinians, meaning the creation of an independent state of Palestine alongside the independent state of Israel. Most iterations of this policy envision a future Palestinian state made up of the West Bank and East Jerusalem, as well as Gaza.

Trump’s previous administration bucked tradition, but did not flat-out reject a two-state solution. Trump moved the U.S. embassy from Tel Aviv to Jerusalem and offered a plan that would have cemented Israeli control over the entire city. It also would have protected Israeli settlements in the West Bank, which are illegal under international law, while moving toward Palestinian self-rule.

President-elect Trump’s pick to serve as the next U.S. Ambassador to Israel, former Arkansas governor and Baptist preacher Mike Huckabee, has never supported a two-state solution.

In an interview with The Associated Press when he was running to be the Republican presidential nominee in 2015, Huckabee said that, if elected, his administration would formally recognize the West Bank as part of Israel.

“I feel that we have a responsibility to respect that this is land that has historically belonged to the Jews,” Huckabee told the AP.


What the Mike Huckabee pick could signal for the West Bank

02:14

In a podcast interview earlier this year, Huckabee said that there “isn’t such a thing” as Palestinians, describing himself as an “unapologetic, unreformed Zionist.” He voiced similar views during his campaign in 2008.

Israel “is an extraordinary oasis in a land of totalitarianism surrounded by tyranny,” he said on the podcast earlier this year.

Florida Sen. Marco Rubio, Trump’s pick for Secretary of State, has repeatedly voiced support for the Israeli government’s response to Hamas’ brutal Oct. 7, 2023 attack.

“Although the Biden-Harris Administration has publicly backed Israel’s right to defend itself, it has also undercut Israel’s maneuverability, leading to a schizophrenic policy towards the region,” Rubio said in a letter to current Secretary of State Antony Blinken in August.

Voicing his objection to U.S. sanctions against individuals alleged to be supporting “extremist settler violence” against Palestinians in the West Bank, Rubio wrote that, “Israel has consistently sought peace with the Palestinians. It is unfortunate that the Palestinians, whether it be the Palestinian Authority or FTOs such as Hamas, have rejected such overtures. Israelis rightfully living in their historic homeland are not the impediment to peace; the Palestinians are.”

Israel’s far-right government says it’s preparing for annexation of the West Bank

Some of those who do not support the creation of an independent Palestinian state do support Israel’s annexation of the West Bank, including members of the current far-right Israeli government led by Netanyahu.

Netanyahu’s Likud party is currently part of a coalition, formed to keep Netanyahu in power, with radical right-wing nationalist parties such as the Religious Zionist Party.

Netanyahu, who has spoken out against the creation of a Palestinian state, committed to pursuing the annexation of the West Bank in Likud’s coalition agreement with the Religious Zionist Party.

“The people of Israel have a natural right to the Land of Israel,” the agreement says. “In light of the belief in the aforementioned right, the Prime Minister will lead the formulation and promotion of a policy within the framework of which sovereignty will be applied in the West Bank, while choosing the timing and considering all national and international interests of the state of Israel.”

Bezalel Smotrich, the Israeli finance minister who’s a member of the Religious Zionist Party, said he believed Israel could work with the incoming Trump administration to promote annexation of the West Bank.

“I am convinced that we will be able to work closely together with President-elect Trump and all members of the incoming administration, to promote the common values and interests of the two countries, to strengthen the strength and security of the State of Israel, to expand the circle of peace and stability in the Middle East out of strength and faith and on the basis of recognition in the unquestionable historical belonging of the whole Land of Israel to the people of Israel,” Smotrich said on social media.

Israeli settlements and smaller outposts in the West Bank are illegal under international law. They’re also seen as a barrier to a potential two-state solution, because the more Israeli Jews live in the occupied territory, the less likely it seems that Israel would ever abandon control of the land for it to become part of a Palestinian state.


A look at Palestinian life in the Israeli-occupied West Bank

03:15

A Pew Research Center survey carried out in the summer found Israelis divided on the potential security risks and benefits of continued settlement expansion, with 40% of respondents saying they help make Israel more secure and 35% saying they hurt security. The survey found 21% of Israelis didn’t believe settlement expansion would have any significant impact on security.

Some Israeli activists believe their government is taking advantage of the country’s collective grief after the Oct. 7 attack to push an agenda in the West Bank that doesn’t have broad public backing.

“In Israel, there’s very little public criticism or any sort of public debate on what is going on in the West Bank,” Sarit Michaeli, international advocacy lead for the Jerusalem-based rights group B’Tselem, told CBS News of the situation post-Oct. 7 attack. “Israelis are furious. They’re angry. They’re hurt. They’re traumatized, and this collective trauma has been exploited by our government to push forward policies that most Israelis don’t necessarily agree with in the West Bank.”

In June, the Israeli body that governs the West Bank transferred many powers over the territory from Israeli military officials to civil ones, who work under Smotrich.

Since the Oct. 7 Hamas attack, the monitoring group Peace Now says it has documented at least 43 new illegal outposts in the West Bank, mostly on farmland. Dozens of new roads have been paved to facilitate the establishment of these outposts, the group said.

What would it mean if Israel does annex the West Bank?

In 2020, Tel Aviv University’s Institute for National Security Studies (INSS) analyzed what Israeli annexation of the West Bank could actually entail. They looked at three possible scenarios, with Israel either taking full security and administrative control of a portion of the Palestinian territory, or just preventing future evacuation of existing Israeli settlements.

In all three of the scenarios examined, Israeli sovereignty would not necessarily be applied in full to Palestinians in the area. If it were to be, Palestinians would live under the jurisdiction of the State of Israel and, under Israeli law, would be entitled to request citizenship.

Israeli soldiers are stationed next to a house that was
Israeli soldiers are seen next to a Palestinian family’s house that was burned by Jewish settlers in the town of Beit Furik, east of Nablus, in the Israeli-occupied West Bank, Nov. 16, 2024.

Nasser Ishtayeh/SOPA Images/LightRocket/Getty


The INSS said annexing West Bank territory would make it harder for future Israeli governments to give up that land as part of any deal to create a Palestinian state.

“In actuality, annexation means tying the hands of future Israeli governments that would be willing to transfer territories for a political settlement,” the INSS report said.

One senior Palestinian politician in Gaza recently told CBS News that regardless of what changes Israel ushers in under the new leadership in Washington, it would not end the Palestinian people’s decades-long fight for a state of their own.

“We will struggle for our rights,” Mustafa Barghouti, a doctor in Gaza and the leader of the Palestinian National Initiative party, told CBS News. The Palestinian National Initiative party champions a unified democratic government for both the West Bank and Gaza.

“It will take time. We will suffer. We know that. But what’s the alternative? To cease to exist? It’s ethnic cleansing. We cannot accept that,” Barghouti said.



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Bird flu reaches Hawaii, the last state that had escaped it

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Authorities in Hawaii are warning residents who attended a local pet fair to watch for symptoms of avian influenza after a local flock of ducks and other birds tested positive for the H5N1 virus that has fueled a global outbreak of infections.

Officials suspect wild migrating birds are likely to blame for the first known infection of a flock in Hawaii, which had been the last state in the country with no reported cases in poultry or wild birds during the current outbreak. 

Sequencing done by the U.S. Department of Agriculture’s national lab in Iowa confirmed the infection, federal officials announced Monday. 

The specific genotype of the virus that infected the birds is known as A3, said Lyndsay Cole, a spokesperson for the federal Animal Plant Health Inspection Services. 

This is different from the B3.13 genotype that has been fueling this year’s unprecedented outbreak on dairy and poultry farms and suggests the virus spilled over into the flock in Hawaii from migrating wild birds.

Investigators have not turned up any links so far between the flock and imported animals or travel, a spokesperson for Hawaii’s Agriculture Department said. The island has “strict importing regulations for birds and other animals,” the spokesperson said.

All the infected birds were housed at the same site, though investigations are ongoing to root out other potential cases. The birds were also not symptomatic until several days after the fair, the state Health Department said, lowering the risk to humans.

“As the birds were not showing signs of infection at the time of the fair, the likelihood of spreading H5N1 to humans is low. However, out of an abundance of caution, DOH recommends that individuals who attended the fair and touched a duck or goose monitor for influenza-like illness (ILI) and conjunctivitis,” the state said in a release

A quarantine order was issued for the property where the birds lived and all will be required to be “depopulated and the premises cleaned and disinfected,” the state Agriculture Department said. An order was also issued to prevent any animals from being moved in or out of the site.

At least 10 birds, which included ducks, a goose and a zebra dove, had been reported dead at the property on Nov. 12. Samples from the dead birds were sent to be tested for the virus.

Closely watching for human cases

Confirmation of the infected flock in Hawaii follows a detection of the virus in the area from wastewater samples collected by the state earlier this month.

Health officials around the country have been closely watching for signs of H5N1 spreading in their communities amid mounting cases in humans across North America.

At least 53 cases have been confirmed across seven states so far this year, the federal Centers for Disease Control and Prevention (CDC) says. Most are linked to the B3.13 version of the virus that has been infecting workers at dairy farms and nearby poultry farms in recent months. None of them are known to have been severely ill.

Health officials in Canada announced this month that they had detected a case of H5N1 bird flu in a critically ill hospitalized teenager. That patient had been infected by the D1.1 genotype of H5N1, which is related to another ongoing poultry outbreak in British Columbia, the Canadian province where they lived.

Experts say the virus that infected the teenager does appear to have some worrying mutations, which might explain why the case was more severe.

“The preliminary sequence from the H5N1 human case in British Columbia has been posted and it is not good news,” Scott Hensley, a professor of microbiology at the University of Pennsylvania, posted on Nov. 16.

Genetic sequencing data from human cases so far in the U.S. have not found any signs of the virus mutating to spread more efficiently between humans or to be significantly more dangerous, the CDC says.

But the agency also recently found evidence that several cases had been asymptomatic and gone undetected during the outbreak so far, prompting stepped up testing recommendations.



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