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Time to Move Some Cash Into CD's?

 

(@pizzaman)
Estimable Member Customer
Joined: 2 years ago
Posts: 112
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CD rates have gone up a lot in the past 7 months. Many of the big brokerage houses offer brokered CDs that pay more than traditional CDs:

https://www.marketwatch.com/story/brokered-cds-pay-more-than-traditional-cds-what-are-the-risks-and-should-you-buy-them-now-11668171598?siteid=yhoof2

If you are a client of Fidelity for example, their brokered CDs are at:

3 month 4.0%

6 month 4.5%

9 month 4.6%

1 year 4.7 %

So is now the time to buy or will CD rates continue to go up. Well, CD rates track the federal funds rate extremely closely which right now is 3.9%. The Feds are meeting one more time in 2022 and are expected to raise rates by 0.5%. This is what Forbes thinks:

https://www.forbes.com/advisor/banking/cds/will-cd-rates-go-up-in-2023/

Thoughts????


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