Are High CD Yields A Come-On?
Years of low interest rates have provided underwhelming options for investors seeking Certificates of Deposit (CDs) as a relatively safe component of their portfolio. Yields above 1% are hard to find and often require tying up your money for a lengthy period. Even with a laddering strategy, the poor yields may not be worth the restrictions on cash.
Federal Reserve interest rate hikes have begun. Many credit unions and Internet banks have recently released higher CD rates in the region of 1.5% APY for 12-month, 1.7% APY for 24-month, 2% APY for 36-month, and 2.6% for 60-month CDs.
Higher-yield CDs are available, often trumpeting those high yields in order to entice investors — but how can the lender afford to pay rates that are far above the norm? FINRA, the Financi...
No comments