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Fidelity: Is It Time To Look At CDs?

TedTed
in Fund Discussions
FYI: Making the most of your cash?
Investors sitting on cash have faced a dilemma in recent years: They could choose stable, low-risk options and accept near-zero interest rates or even negative real returns, or take more risk to try to generate some degree of yield. Faced with an unpleasant choice, many have opted to do nothing.

“Many people may be leaving money on the table by not taking full advantage of the cash portion of their portfolios,” says Richard Carter, vice president of fixed income products at Fidelity. “They can be doing something smarter.”
Regards,
Ted
https://www.fidelity.com/viewpoints/investing-ideas/time-for-investing-in-cds

Comments

  • MarkMark
    So, I could stick my money into a 15-mo brokered CD at 0.55% or leave it in my current savings account at 0.75%. Tough choice.
  • [Deleted User]
    The user and all related content has been deleted.
  • scott
    Mark said:

    So, I could stick my money into a 15-mo brokered CD at 0.55% or leave it in my current savings account at 0.75%. Tough choice.

    You're lucky to get that much (0.75)
  • MarkMark
    @Scott - Capital One 360 (formerly ING) savings FWIW
  • msf
    The article compares the use of CDs with the use of money markets, which are mutual funds. (The writing was a little sloppy - "money market" could mean MMF or "money market account", but from the context it appeared to be referring to MMFs.)

    If you want to go with Capital One, their brick and mortar line of business pays higher interest rates, "up to" 1.25%, vs. 0.75%.
    http://www.capitalone.com/savings-accounts/
  • [Deleted User]
    The user and all related content has been deleted.
  • Old_JoeOld_Joe
    "Ted and I occasionally do this sort of thing to each other to keep things interesting."

    You too, hmmm?
  • MarkMark
    @msf - there are no brick and mortar branches in my location. Your link just takes me to the online capabilities I already use But I was intrigued.

    I know that I can do better (1.0%) at Synchrony and Ally for example if I choose to deal with opening and having another account at another place. Cash in plain savings accounts however don't sit still very long these days.
  • msf
    Best site for banking rates/info IMHO:
    https://www.depositaccounts.com/

    It will filter banks based on your state, balance required for rates, restrictions on accounts (typically credit unions), whether you need to walk into the bank to open the account. The highest money market account rate it came up with that's available in all states ("nationwide), and open to everyone is 1.25% at McGraw Hill CU. (You can join with a one-time donation of $25 to VOICE Foundation.)

    Capital One has branches in around a half dozen states; if you're somewhere else, that may explain the page that came up for you.
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