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Marketplace All-in-One

CDs are having a hot moment right now

Marketplace All-in-One

Marketplace

News, Business

4.51.4K Ratings

🗓️ 6 August 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

In the midst of recent market volatility, many investors are seeking safe havens for their money. Cue the handy-dandy certificate of deposit, which is currently giving guaranteed returns of 4% or 5% at many financial institutions — but that may change when the Federal Reserve cuts interest rates. Also: a look at Japan’s market rebound, cash prizes that come with Olympic medals and the Justice Department’s antitrust case against Google.

Transcript

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0:00.0

Stock indicators are pointing to a higher opening on Wall Street after the Monday mess.

0:07.0

I'm David Brancatchio in New York, S&P and NASDAQ futures are up about 1% with just over an hour and a half to go before markets

0:15.0

open officially. I see London down slightly but Frankfurt up to 10% now. The

0:20.4

big rebound after the big drop was in Japan today where the Nikk

0:24.4

index regained all but 3% of its 13% drop that started the week. Here's the

0:30.3

BBC's Mariko Ooy.

0:31.6

The Nikki 225 almost recouped, all the losses it suffered yesterday, ending the day more

0:38.8

than 10% higher after falling 12.4%. You know yesterday was the biggest

0:44.5

point fall on record and today we had the biggest daily rally in

0:48.6

history so extreme volatility and definitely not for the faint-hearted. There's a sigh of relief

0:55.1

but it also confirms the view of Sam analysts who were saying yesterday that

0:59.3

fundamentals are strong. Don't sell in panic because Japanese companies are doing well and the

1:04.7

economy is quite resilient as well. Indeed financial advisors here often warn

1:10.3

us not to make money decisions in the heat of battle. Yet the Associated

1:14.0

Press reports many customers had trouble logging into for instance their

1:17.5

Vanguard, Schwab, and Fidelity online accounts yesterday, a day the S&P fell 3%.

1:24.6

Now beyond stocks, a commerce spot for money is a classic.

1:28.1

The certificate of deposit, a CD at the bank, leave money for a set time and it comes back with a bit of interest.

1:34.0

At a time of falling interest rates in America, let's get an update from Marketplace's

1:38.1

Kimberly Adams.

1:40.1

Certificates of deposit give guaranteed returns if you promise to leave your money in the bank or

1:45.2

credit union for a set period of time, usually three, six, nine months, maybe one to three years.

...

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