![]() ![]() Hedge your savings: Deposit rates are up across the board.“A prudent CD investor may want to ladder their investments across multiple terms so that market timing doesn’t significantly impact their repricing investment upon maturity,” Garcia says. Build a CD ladder: Alternatively, you can consider putting your money in a CD ladder, which allows you to take advantage of long-term CD rates while maintaining some liquidity in the short term.Sticking with terms of six to 18 months will let you take advantage of today’s high rates but allow you to move your money elsewhere (without paying early withdrawal penalties) if rates fall. Plus, predicting what CD rates will look like in the next few years is impossible, so avoiding locking in your money for too long is a good idea. So, short-term CDs (e.g., no longer than two years) will yield the best. Stick with shorter terms: Garcia notes that we’ve experienced a prolonged inverted yield-curve environment, meaning short-term rates are higher than long-term ones.Whether CD rates increase or decrease, you can still use today’s rates to maximize your savings. ![]()
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