A portion of our investment portfolio includes a 5 year CD ladder. One of our laddered CDs is maturing in about 2 months. The current falling rate environment has me second guessing my plan to renew maturing CDs to a new 5 year term.
I had hoped we had seen the end of the extremely low CD interest rates from previous years but this recent FED cut and another cut expected in the near future has me questioning locking money up for 5 years. Especially when the yield between a 1 year CD and 5 year CD can be so little.
But who knows... a 5 year CD in October at say 2.5% might be the best available rate for 5 years if the FED continues to cut and we enter a new period of falling rates to stimulate a slowing economy and a possible recession.
If you have a laddered CD plan... How committed have you stayed to your plan and renewed as scheduled and accepted the yield as it averaged over the life of the ladder?
I had hoped we had seen the end of the extremely low CD interest rates from previous years but this recent FED cut and another cut expected in the near future has me questioning locking money up for 5 years. Especially when the yield between a 1 year CD and 5 year CD can be so little.
But who knows... a 5 year CD in October at say 2.5% might be the best available rate for 5 years if the FED continues to cut and we enter a new period of falling rates to stimulate a slowing economy and a possible recession.
If you have a laddered CD plan... How committed have you stayed to your plan and renewed as scheduled and accepted the yield as it averaged over the life of the ladder?