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Are CDs Going Extinct?

Tuesday, June 11, 2013 - 6:55 AM
For the last fifty years, CDs have been a stable part of an investor’s portfolio. Risky money went into stocks, less risky into bonds, and the money a person didn’t want to lose went into CDs. For retirees, CDs often comprised a significant percent of a saver’s portfolio.

But with interest rates at record lows, and the average rate on a 12-month CD at 0.36% according to BestCashCow data, one has to wonder if CDs have lost their place. The answer seems to be, yes.

Are CDs Going Extinct?
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,527
1. Tuesday, June 11, 2013 - 10:16 AM
I agree with the article that CDs will always be around for certain people such as myself.  When rates go up, we will always prefere CDs.  We just have to ride out the waves until things turn back around as they eventually will.  We have to understand that they have to have some type of safe investment for the young who are just beginning to save (hopefully).  The future is a big ? mark for all of us.
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135