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Home - CBSNews.com | 3 CD account mistakes to avoid in today's economy

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In today’s high‑inflation, high‑interest‑rate environment, certificate‑of‑deposit (CD) accounts can earn 4% or more—far outpacing the average 0.38% on traditional savings accounts—and offer the security of a fixed rate, but savers must avoid three costly mistakes: failing to shop around, especially at online banks that can pass on lower overhead with higher rates; opting for short‑term CDs instead of locking in a longer‑term CD that, even with a slightly lower rate, yields greater returns through a longer compounding period; and depositing more money than they can comfortably leave untouched, since early withdrawals incur penalties that can erase earned interest. By comparing online options, choosing longer terms, and funding only affordable amounts, investors can protect principal, grow interest, and gain peace of mind while the broader economy stabilizes.

Read more: https://www.cbsnews.com/news/cd-account-mistakes-avoid-todays-economy/

#certificateofdeposit #onlinebank #inflation #interestrates #savers

3 CD account mistakes to avoid in today's economy

If you're considering opening a CD account in today's economy, it's critical to first know which mistakes to avoid.

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