with Stock market returns Assam and its consequences Inflation Still being felt across the country, many Americans are eagerly exploring new ways to grow and (hopefully) protect their money. It can take many forms Refinancing Shoring up surgery More. It could mean opening up to those who already have money in the bank Certificate of Deposit (CD) account This can be done by transferring money from an existing account to a CD or simply closing an account and using that money to fund a CD instead.
But is a CD worth opening now or is there a better way to protect your money? Below we’ll explore three times when a CD is worth opening.
Start by checking today’s CD interest rates to determine if it makes sense for you or use the table below to explore some local options.
3 times a CD it’s worth
Here is worth opening a CD three times.
When interest rates are high
When a Increase in interest rates Not great for home buyers or those looking to refinance, it’s generally favorable for those looking to open a CD or a High Yield Savings Account. So interest rates are what they are. March 2023 is a great time to open a CD. Interest rates on these accounts currently range from about 3.5% to 4.5% or more, depending on the lender and other factors. Compare that to the 0.33% you could earn with a traditional savings account, and it’s clear that a CD is worth opening now. You can start here or use the table below to explore your local offers
When you want to protect your money
When you put your money in a CD you can’t touch it without penalty until the term you agreed to expires. While this may not be great for those who are used to constant withdrawals it may be worth it as a last-ditch effort to protect your money. By locking it for a certain period of time you know it will be protected without interruption (and thanks to interest). Given that it can be used as an option to keep it accessible, CDs are a worthwhile way to protect your hard-earned money.
When you can afford to leave it untouched
Although it’s generally worth opening a CD when interest rates are high and you want to protect your money, it’s really worth it when you can keep it untouched. A CD is not worth opening if all the money in your account needs to be accessible as cash or to pay bills. You pay a penalty for withdrawing it early – reducing both your bottom line and the potential interest you could earn (and compound over time). But if you can afford to leave it untouched for the duration, a CD is probably worth it.
Accounts like high-yield savings and CDs are generally worth pursuing in the current rate environment. For those looking to open a certificate of deposit, it’s usually worth it to act when interest rates are high and when you’re looking for a safe way to protect your account. It’s also worth it for money that you’re already used to leaving undisturbed in the bank Explore your CD options online today and start earning more interest now!
MoneyWatch: Managing Your Money
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