There's a principle called laddering. Is it kind of appropriate to think about it the same way? Yes, exactly. So it's a little trickier nowadays because in normal times you go further out with a bond or a treasury or a CD, you earn a little bit more interest. The peak is, the sweet spot nowadays is about one year, maybe two years. But still you could buy six months, one year, two year to get hopefully a little bit higher interest rate.
The Federal Reserve has raised interest rates 10 times since 2022. But you probably wouldn’t notice those hikes in a traditional savings account. Dylan Lewis caught up with Robert Brokamp to discuss: - How banks benefit from your inertia, and how that costs you - Ideas for managing cash for the next few weeks, months, and years - Money market funds paying more than 4%, and the caveats to understand before utilizing those accounts - Who can benefit from I Bonds and less-liquid savings vehicles Website mentioned: https://www.fool.com/the-ascent/ Host: Dylan Lewis Guest: Robert Brokamp Producer: Ricky Mulvey Engineer: Rick Engdahl
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