CD rate vs term

[ducky911]

OK finally sold my going nowhere bond fund. Going to build a cd ladder with schwab.

Rates are 1 year 2.75 2 year 3.1 3 year 3.25 5 year 3.55

With interests rates on the rise I am leaning toward just one and two year for now and stretch it out sometime in the future.

Doesn't it seem likely that 1 year cd's will be over 3% this time next year?

Thanks

Bob

 

[pb4uski]

....Doesn't it seem likely that 1 year cd's will be over 3% this time next year?....

Yes.

 

[erkevin]

Ducky-
I, too, sold my "going nowhere bond fund" (BND) a month or so ago. Took the proceeds and purchased a 1-year CD.

 

[Dtail]

Lots of opinions both ways on bond funds, but also got rid of mine around 7 months ago for a 2 yr CD Ladder.