CD Archives

President John F. Kennedy once famously said, “life isn’t fair.” If JFK were around today, he might apply his famous phrase to the current dichotomy between Main Street and Wall Street. Last week, the U.S. Labor Department announced that the unemployment number had reached 10.2% for October — a 26 year-high. According to some economists, it could take four years before unemployment settles back down to 5% or 6%. Read more»

Last week in this space, we discussed the mindset adopted by Federal Reserve Board as they gathered to meet in Washington. Like a Formula One race car driver who wants to step on the pedal, the Fed would prefer to kick rates up, but heavy economic traffic calls for a steady speed. Read more»

It’s a tough world out there, with Americans postponing their pursuit of the American dream to hunker down until the economic storm passes — and when that happens is anyone’s guess. While we wait for a revival and focus on survival, let’s make the best of the situation by finding the best bank interest rate deals out there. BANK SAVINGS ACCOUNTS Read more»

The Federal Reserve’s Open Market Committee, the group that decides economic interest rate policy, meets today to discuss the economy, inflation, unemployment, toxic balance sheets and maybe even the ability of leprechauns to locate gold. Hey, why not? If there was ever a need for a “kitchen sink” mentality from the Fed, this is it. Read more»

If you were on a big weekend in Vegas, and you kept doubling down on red while playing blackjack, you’d be taking your chances — and maybe going home on a Greyhound bus. But betting on CDs going in the red week after week is a reasonably sure bet in the certificates of deposit sector these days. Read more»

Certificates of deposit are the Swiss army knife of Wall Street — they have lots of handy uses. One creative way to leverage your CD investment is to use it as collateral to pay down a loan. But is it a good idea to use a CD to pay down debt — and if so, what’s the best scenario to do so? Let’s take a look under the hood. Read more»

Are certificate of deposit investors souring on the Federal Reserve? Even though there are no mass protests at the Fed's front door, you have to wonder if there will be soon, as CD rates are scraping the floor largely thanks to the Fed’s determination to artificially sit on interest rates. Read more»

Investors are having a love affair with bond funds, but some fund experts, like stern parents, are urging them to take it slow. What gives? While fund companies are eager to have new cash come in, they don’t want investors to have bad experiences that could turn them off long-term. Bond funds are riskier than many investors realize, and investors who pile in today could lose money if interest rates rise. Read more»

There’s a larger theme developing right now that looms large over the bank deposit sector, one that could boost interest rates on certificates of deposit rates over the long term – but at the expense of the overall economy. It’s the alarming growth of the U.S. federal debt. Read more»