Popular Posts

Rate Cuts at HSBC Direct, FNBO Direct - Future Rates?

POSTED ON BY

Interest rates are falling. Two major banks recently lowered their online savings account yields:

The stock market tanked today as Wall Street feared a deep recession (see article). Worries of a recession might lead the Fed to cut interest rates again at the next FOMC meeting. I'm afraid it doesn't look good for savers.

If you want to lock in rates, your best bet is a CD. The difficult question is how long of a term. If you go too short, the CD matures in a low rate environment. If you go too long, the CD is stuck at a low rate while rates rise. Just remember you typically have the option of an early withdrawal with a penalty. Make sure the early withdrawal penalty is not too severe. I've seen some CDs that have penalties as high as 30 months of interest on a 5-year CD. Look for CDs with penalties on longer terms of no more than 6-months interest.


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.