Will CDs go up in the next year?

[jazz4cash]

Good discussion. Another thing I recently realized is that my decisions to fill rungs on my lumpy ladder are being influenced heavily by anticipation of SS at FRA. In 4 yrs my need for FI will drop noticeably. I use a bar graph that shows maturity date vs value to get a graphic image of where the holes are. I haphazardly added a bar at FRA and instantly all the gaps beyond that date became insignificant.

[dtbach]

Fed just raised rates again the other day and plan on doing it 3 more times next year. So I'd say that there should be an excellent chance of CD's going up next year.


That said, I prefer dividend stocks to CD's. They raise the dividend long term and often do splits. So I normally don't do much with CD's.

[Drake3287]

Agree, between this latest rate increase and what's projected, we're looking at 3%+ in the coming months. Certainly much better then what we had not long ago.

[Helena]

Quote:

Originally Posted by dtbach Fed just raised rates again the other day and plan on doing it 3 more times next year. So I'd s ay that there should be an excellent chance of CD's going up next year.

The interest rate on my local bank 5 year "variable CD" automatically goes up the next month every time the Fed increases the funds rate. I took the CD out about a week ago at the floor rate of 3%. Now that the Fed has raised the interest rate .25, October 1 my variable CD interest rate goes up to 3.25%. Every time the Fed raises the rate, my variable CD will automatically go up the next month. Should the Fed lower the rate, my rate will also go down... but my interest rate will never go down below the initial 3%.

Variable CD

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