2324: MONDAY MASTERY - What You Need to Know About Laddering CDs by Dr. James M. Dahle
Optimal Finance Daily - Financial Independence and Money Advice
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How to Buy a CD Ladder
Some banks issue CDs that allow you to update your interest rate once or more during the term. When a CD is closed or cancelled before maturity, the investor pays a penalty in the form of losing a few months of interest. Is now the right time to buy CDs? It depends on future interest rate movements. If rates fall, you'll be better off with a bond or bond fund. But if you want an investment that will not lose principal, even if rates go up, and that will pay more than a savings account if rates stay the same or go down, a CD will fit that bill.
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