A “CD Tsunami” Is Coming: Are You Ready?

HerMoney with Jean Chatzky

Jean Chatzky Her Money

Investing, Entrepreneurship, Business

4.8 • 1.3K Ratings

🗓️ 16 September 2024

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

CDs (Certificates of Deposit) often get dismissed as "your parent's savings plan"—safe but, let's be honest, a little boring. But in today's high-interest-rate environment, they're making a strong comeback as a smart choice for short- and medium-term savings. With inflation cooling and the Fed expected to cut rates soon, these great rates won’t last forever. Joining us today is banking veteran and CEO of CD Valet, John Blizzard, to break down what CDs are, who should consider them, and whether now is the perfect time to invest. Chapters: 00:00 Introduction 03:14 How To Find the Best CD Rates 05:21 Retail CDs vs. Broker CDs 09:12 Locking in High CD Rates in a Decreasing Interest Rate Environment 11:24 CDs: A Savings Option for Savvy Savers, Retirees, and Event Savers 13:26 Shopping Around and Being Aware of CD Rollover Options 16:24 Considering Digital Capabilities When Opening a CD Takeaways CDs are a long-standing investment option that offer higher interest rates than savings accounts. Finding the best CD rates can be challenging as many community banks and credit unions are not searchable on popular rate comparison websites. With interest rates expected to decrease, now is a good time to lock in high CD rates. Savvy savers, retirees, and event savers are the primary audience for CDs. Shopping around for the best rates and being aware of CD rollover options are crucial. Have a question for us? Write to us at [email protected]. While you’re at it, join the HerMoney community! For the latest episode drops and financial news-you-can-use, subscribe to our newsletter at Hermoney.com/subscribe! Interested in learning more about investing alongside hundreds of other women? Join us every other Monday night on Zoom and learn more at investingfixx.com. Thank you to Gainbridge® for supporting the HerMoney podcast. Gainbridge® created ParityFlex™, a multi-year guaranteed annuity, to offer women security and flexibility at a time when they need it the most—retirement. Learn more about ParityFlex™ here. The HerMoney with Jean Chatzky podcast is sponsored by Edelman Financial Engines. The podcast team and its host are neither employees nor clients of EFE, however, the show does receive fixed compensation and is a paid endorser and therefore has an incentive to endorse EFE and its planners. To learn more about the sponsorship, please visit PlanEFE.com/HerMoney. Use promo code HERMONEY at the link below to get an exclusive 60% off an annual plan at https://incogni.com/hermoney. Grab the exclusive NordVPN deal ➼ https://nordvpn.com/hermoney and get extra subscription time. Try it risk-free now with a 30-day money-back guarantee. Thanks to NordVPN for sponsoring our show. Please contact [email protected] if you would like to advertise on our podcast, and to learn more about Airwave, head to www.airwavemedia.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You're listening to an airwave media podcast.
0:06.0	Her money is proudly sponsored by Edelman Financial Engines.
0:10.0	When you think about your financial plans, are you diversified?
0:14.3	After the year we had in 2022, it is a really good question.
0:20.7	Is it time you rebalanced or made other adjustments? Help make sure your
0:25.0	investing strategy is right for you. Visit plan EFE.com slash Hermani to
0:30.6	schedule your complementary wealth checkup.
0:36.6	Hey everyone, I'm Jean Chatsky.
0:38.1	Thank you so much for joining me today on her money.
0:41.2	Today, we're going to talk about CDs. No, not the CDs you used to listen to in the car. Am I showing my age or burn playlists on for your friends. I'm talking about certificates of deposit.
0:55.8	Today's gonna be a primer all about what these things are who should buy them and if now because the Fed is expected to embark on a
1:06.7	string of rate cuts is the best time to buy them. Look CDs sometimes get a bad rap as your parents savings vehicles.
1:15.8	They're generally considered safe investments, which makes them boring to some, but they
1:20.8	could be a really good option for your short and medium term savings,
1:26.1	especially right now with interest rates still hovering at levels that truthfully we haven't seen in years.
1:34.8	With inflation cooling and the Fed expecting to cut rates
1:37.8	when they meet later this week,
1:39.2	we know these amazing rates won't last forever,
1:42.4	which means you need strategy.
1:45.3	And if you're listening to this and you already have a CD
1:48.8	that will be maturing soon, well, you're not alone,
1:52.4	we are headed for what market rate calls a
	...

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