Tag: CD ladders
It’s Time to Purchase a Certificate of Deposit: The Magic of High-Yield CD Reinvestment
I just received an email from Discover (where I have my high-yield savings account) offering me 5.20% interest on a 12-month certificate of deposit. It’s been a long time since CD yields were this high, and I fear they won’t last much longer. I personally have a higher risk tolerance than most, so CDs aren’t…
Make a 5-Year Commitment: Treasury Notes vs Certificates of Deposit
Certificates of deposits used to be one of the safest investments in town. However, we had a troubling turn of events in March 2023. Three large banks failed in about a week: Silvergate Bank, Silicon Valley Bank (SVC), and Signature Bank. Silicon Valley was the 16th largest bank in America (by deposits). These bank failures…
Investing for Interest 111: CD Ladders vs. Treasury Ladders
Do you prefer saving over investing? Do you want to maximize the rates on your high-yield emergency fund? The Federal Reserve has said that interest rates will be “higher for longer,” meaning that savers can earn a respectable amount of interest income. But which route will you take for your savings allocations? There are many…
Middle-Class Investing 105: Start with Savings & Interest
Becoming a big-time investor doesn’t start with buying dividend stocks and real estate. First, you must appreciate every dollar you earn. The purpose of every dollar you earn is to earn more dollars. That’s right; your money makes you money. The first place we can start earning income from our money is in the banks.…
