Lock In Higher Returns Now - Short-Term CD Rates Beat Long-Term amid Economic Uncertainty
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Short-term CD rates are often higher than long-term ones right now because banks are hesitant to commit to long terms with an uncertain economy.
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Historically long-term CDs had better rates to entice savers to keep money deposited for longer.
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CD rates tend to follow the federal funds rate, which banks expect could drop over a long term.
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Savers should calculate potential interest earnings to decide if a short or long term CD fits their savings goals better.
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Act soon before these elevated CD rates decrease, rather than leaving money in regular low-interest savings accounts.