CD

Edard_Flanders

I was thinking the same thing. I was actually going to say go get a CD if you really want safety. But I don't consider that to be an investment. You can either be safe from market risk or safe from the risk of inflation out pacing earnings, but you can't really be safe from both at the same time.

autumnbreeznleaves

We have to support these young bands. The AI music that pops up on YT is crap. These bands have a hard time finding venues to play to get a following and people are too cheap to pay for music anymore. Well if you don't wanna pay then you are the product. I like buying CD's of my faves. If the bands get $1 per CD that's gotta be worth about 10k streams or more to them.

RoomLord

If I want to listen to music, I'll just open up Napster and burn a CD, thank you very much. 

visionarymind

Dang, looks like another bigly 🩸🔴 session Time to buy a CD & collect this 4.5% yield 😪

NewSeaworthiness8814

In 13 years when your daughter is 18, you’ll both really really really wish you had invested that money in a broad market index fund like VTI instead of a CD. She’s not turning 18 tomorrow; invest the money

Soda_Pressed13

CD isn’t doing anything for your money, arguably losing value after taxes and inflation. Need to invest in high quality assets to make any ground.

AllCapNoBrake

Imagine where you'd be had you just put that into a 12-month CD.

IceCreamforLunch

Right now my investments are zero bonds, about 5% cash (HSA/CD), about 25% investment real estate, and the rest is stocks. The vast majority of my stocks are in S&P, total market, and ex-US international index funds. I've been increasing my international allocation in earnest for the past few years and I've been working on increasing cash for the last year. If we got hit by a >50% downturn right now my plans to retire early next year would go on hold. I'd dump most of the \~3 years of living expenses that I've built up in cash into the market and wait however long it takes for a recovery. If we get hit by a >50% downturn mid-next year when I've already retired then I'll cut expenses (pare the vacations way down, keep my current vehicle longer, etc), take over managing the rental portfolio to increase that cash flow, and probably look for a little supplemental income to make my cash last longer and put off selling any of my investments for as long as I can.

ivotebolsheviklite

Correct. When I was 16, I was placing orders for my dad over the phone. He made a killing off my “stock tips” which were basically me identifying what was good and what wasn’t. I told him not to listen to my mom and buy Amazon in the early 2000’s when I bought some CD’s and had them shipped to my dorm. She kept being scared about putting her card online - but credit cards always had fraud protection, it’s just that people didn’t talk about it much. If he had put in 1k, that would be worth between 100k and 250k today. But naw…. He listened to my mom.

TreGet234

My mom has a phat CD expiring in january. That will go straight into silver.

dljmonkeyboiz

I hate it when my CD player keeps skipping

Sea_Local2557

the interest you get will be worse than what market pays so if you have cash lying around do CC or put cash into a CD or equivalent like box spread based on your tax requirements if you are low on cash but have healthy buying power then do short put also, with volatile name i always buy some insurance to limit my max loss, eg buy a longer dated put while rolling shorted dated puts

Ok-Meeting-3150

put it in a CD and wait 150 years

SoRedditHasAnAppNow

When I was growing up we had our encyclopedia on CD!

RadioBusiness

My 401ks are only one portion of my portfolio I DCA over that into larger funds like fxaix but I do like having the target date as more of a set it and forget it someone else is worrying about the risk allocation of this professionally managed piece That will probably change in the future but right now between work, kids, and managing my other money like index CD emergency savings putting that chunk into something target based feels easier

AlphaYou_net

No, and Tbill fund already does what a rate rise needs. Bills mature in weeks, so the yield resets itself as rates go up. A CD locks the old rate in, which is great if rates fall and annoying if they keep climbing IMO check state tax on the interest. Bill interest is exempt from it and a bank account isn’t

Patient_Idea5538

i agree you don’t want to be hauled into a blame‑game if he takes any risk, but you can still give a safety‑first outline. point him to a low‑risk mix—say a 70/30 bond‑to‑ETF split, a CD ladder, or a high‑yield savings account—so he learns to keep capital safe without needing you to pick a specific fund for him.

therealjerseytom

I actually like using T-bills for my emergency fund, usually a ladder of four of them, 25% each. At the moment I'm doing 8-week, spaced 2 weeks apart. I like that because it allows my money market position to be uninvested slush and spare cash (to invest, to spend on some discretionary purchase, whatever), while the E-fund is "locked up" in those individual securities. Given how liquid they are and having 25% of your whole E-fund maturing every 2 weeks, availability of the money doesn't wind up being a concern (unlike a CD). Alternatively, I've thought about parking it all in SGOV to have that clear demarcation versus the money market.

No_Action8197

nah nothing is locked in with an index fund. you get whatever the market does, so if the S&P does 15% you get roughly 15% minus a tiny fund fee, and if it drops like 2022 you eat that too. when people say investing at 5% they usually mean thats the return theyre assuming for planning, like a conservative guess for retirement math. or theyre mixing it up with a CD or treasury where the rate actually is fixed. your edit is basically right, the phrasing is just sloppy

FillMySoupDumpling

I was looking to buy a home when my lease is up. There are small sweet spots when it’s financially “worth it” but so far, those have been few/far between in my area.  I have the money in a few places ordered by general liquidity:  - most in HYSAs - some in these private short term notes giving me 6 percent - essentially like a CD but less liquid than one - some in a REIT paying 10% or so. This is the least liquid, but is liquidatable if needed. 

IceCreamforLunch

I'm approaching early retirement so I've been increasing cash quite a bit. I've started building a CD ladder with some of it. I may start doing TIPS when I have enough that the longer timeline works for me.

Spare-Dingo-531

Buying a CD or a money market fund is basically investing in US dollars. Also, you can stake crypto and get interest on your cryptocurrency, just like you can with USD in a money market fund.

Lost_Gur_4323

No. With an index fund you get whatever the index does, minus a tiny fee. If the S&P 500 returns 15% this year, an S&P 500 fund returns about 15% (minus something like 0.03%). If it loses 18% like in 2022, you lose about 18%. Nothing is locked in. When people say "at 5%" about index funds, they usually mean one of three things: 1. An assumption for planning. To project "what will $10k be worth in 20 years," you have to plug in some return. 5% is a conservative guess and 7–10% is more optimistic. It's an input to a calculator, not a promise. 2. How much they contribute. "I put 5% in the S&P 500" often means 5% of each paycheck goes into their 401k. 3. They're actually talking about a fixed-rate product. A CD, a Treasury bill, or a high-yield savings account really can pay a set rate, like 5% for a year, no matter what stocks do. People sometimes mix the two up. The basic trade-off: fixed-rate stuff gives you certainty and a lower expected return, while stock index funds give you no guarantee in any single year but historically higher long-run averages (around 10% a year nominal for the S&P 500 over long periods, with plenty of negative years along the way). That's why money you need within a few years usually goes in the fixed-rate bucket, and long-term money goes in the index fund.

obee1can

Don’t you dare! You got a baby on the way. CD ladders are your only way out.

IntrepidFig1609

Thank you. I’ve been a diversified investor since 1995. About three years ago… I gradually shifted to 50/50 laddered CD’s, and dividend utilities (with a touch of AI ETF’s). Around a 2.3 mil portfolio. No debts for many years. I’ve never been bond or treasury smart. 🙈

CanaryUmbrella

this sub will be talking CD rates in about 5 years.

str8losing

until that correction hits then it's the CD bros turn

interpreterdotcourt

I have very little in CDs (just no penalty ones) and I think one locked in CD ladder set to open up every 3 months. yes I have the Tbills to avoid income tax in my state. quite a bit in some 4.5% HYSA (marcus but it's a hustle to get referrals only 3 months rn .. that was basically my question I only plan on doing this for a couple months , then diving into the market.

Infamous_Ad8730

SGOV is easy in and then out of anytime so you aren't locked in like a CD or T bill.

mightysockelf

Those are not all the same vehicle. If you invest into a traditional CD, you'll have early withdrawal penalties if you decide to get out before maturity. If you buy a short term secondary, you risk price fluctuation. T-Bills are fine, but the short term ones sometimes are no better than a brokerage money market or HYSA, and they'd only benefit you if you're in a state where you'd otherwise pay taxes on investment returns. If you're wanting to stay ahead of inflation on a higher amount of money, a 4%+ HYSA is fine for a year or two until taxes on interest pull it under. A higher interest Treasury will work for maybe a few years.

likamuka

Does anybody have a spare AOL CD left with preferably more than 100 min left?

Crayshack

If you are expecting a major purchase like that, have a seperate investment account dedicated to saving for that. Focus on low risk investments that might not have as much growth, but have low volatility and won't respond to a market crash. Bonds, CDs, HYS, certain commodities, etc. The sort of stuff you might have a small amount of as a form of diversification in a growth focused account now becomes the primary investment strategy. I have an account that I have labeled "Housing Fund." It's nominally for me eventually making a down payment on a house, but it also could be tapped for something like a car or other major expense that isn't an emergency. I have that mostly in a CD ladder with the next largest chunk in a Federal Bond ETF. I do have some in an S&P 500 ETF, but it's a relatively small portion of the account. Because I expect to tap most of this money within the next 5-10 years, the account is tuned more towards stability than growth while still seeking enough growth to beat inflation.

mrmrssmitn

Pay to let somebody else do it for you. You have a minor investment problem so commit some money per month to it and walk away. A bank CD looks genius next to your current results. However, you have a major gambling problem, decide what you want to do.

space_nick

Seriously dude this is a “you” problem. You clearly stink at investing. Put your paycheck in a fucking CD and you’ll be fine

aputhehindu

1: stop doing this 2: start saving as much as you can. Yes 401k/IRA in a controlled mutual fund. Yes, HYS or CDs or Money Market. 3. After you build up a base of non 401/IRA savings, re-enter the market with a real strategy. Index funds at first with maybe 50% of your MM/HYS/CD funds, but continue contributing to that low risk side of house for now. 4. You have a gambling addiction so I don’t want you EVER touching 0DTE again or day trading or doing risky degen shit. I want you to become addicted to MAKING MONEY, not burning it. 5. When the moment feels right and you feel in control of the aforementioned gambling problem. Start putting more of that low risk income generating money into the market. You’re young, and you’d be crazy not to take a little more risk, but stick to GROWTH, stick to ETFs or stick to things you have a passion for. Do not invest in get rich quick schemes. 6: Do think long term. Do hold positions for 1 year or more. Since we are now making money, you will need to pay taxes when you exit a position. Long term gains (>1 yr) pay less tax than short term gains so it’s better to take the long position and be patient. 7: You didn’t screw up that bad. You will make this money back fast. Just need to take a moment and really consider what you can have if you stick to a safe savings plan, not what you could have had if you did x at y time with z money… 8: I believe in you. This was a wake up call. This post was self acknowledgement in a real problem. That is the first step- this list is everything that comes next. You got this

drummer820

Smart plan under the circumstances man, take profits, throw a lot of it into a CD or HYSA and rest easy. If you are gonna retire in the next year or two it would be insanely risky to be deep into equities in this climate. If there’s a crash you can buy back in cheaper

p0rc0r0550

I envy you guys so much. I just started my career as an infrastructure engineer right out of uni and I had to know cloud computing, Linux, k8s, software engineering, systems design, CI/CD, observability and networking(some more in depth than others) and a couple of days ago someone said that "when I started at AWS as a SWE intern, I didn't know what ACID was). Mf what?

AndrewFromAnnuity

If cutting taxes matters most, the type of account you hold this in makes a big difference. Treasury bill funds aren’t taxed by your state, which helps in a high tax state, will CD interest get taxed by both your state and the IRS every year. You could also compare a fixed annuity, because it keeps the same rate for several years and you don’t pay tax on the interest until you take it out. Taking money out early usually means a fee, though, and before age 59.5 the IRS adds a 10% penalty too. Treasury bills for cash you might need soon and a fixed annuity for money you won’t touch for years could work well together.

DoYouKnowBillBrasky

A - If you pay PMI on your mortgage, put $ to that to get under PMI B - In current conditions, put the rest in CD and DCA into an HIGH QUALITY ETF (3k-5k per month) C - All in Intel...If you don't get the joke, it's a good one.

Top-Woodpecker6696

I looked into this for Projekt CD Red before Cyberpunk 2077 came out. Never followed through (stock is listed in an overseas exchange) and then it ended up collapsing when it didn’t meet sales expectations. Which is all to say, seems too obvious.

RonaldWRailgun

Piracy has existed and has been popular in the modern form for as long as high speed Internet existed. In different forms even before then (when you had to trade CD Roms or even floppies with your friends). Movies are still being made. Metallica is still making new albums. The industry will be fine.

kingallison

Suitability and risk tolerance. How old are you? How much money do you have to invest? Can you afford to lose that money? It's pretty simple. If you have enough money that you don't need to use soon and find stocks that you think will increase in value over your time horizon, it probably makes sense to invest in stocks. If you're older and can't risk losing money for the reward of maybe getting substantially higher gains in stocks, it makes more sense to invest in bonds. It's also common to mix between both. Sideline money always in at least HYSA or Money Market, bonds are fine too. Bonds are also not the same as CD's. You can sell them if you change your mind. I'm 35 and am heavily allocated to stocks over bonds. But when I'm not buying stocks, my uninvested dollars are either in Money Market, SGOV, or short term bonds.

BadMoonRosin

People act like bonds are a CD. Whatever the current interest rate is, that's the return you're getting on your investment. Simple as that. The reality is that most retail investors can only really participate in the bond market via mutual funds and ETF's. And that's not a static investment at a fixed interest rate. That's an investment whose principal goes up and down inversely to what interest rates are doing. In other words... I'm not rushing into bonds, because it looks like rates are heading higher. Meaning that all but the shortest-term funds are going to be losing value in the near term.

b30

I would have to see evidence that this is a widely accepted reason. Here today in 2026 artists are struggling to sell physical albums. According to the RIAA, 82.3% of recorded music sales is streaming, 9.1% vinyl, 2.7% CD, etc. You think in 2026 file sharing is still the main problem? What file sharing platforms are the mainstream using these days to rip off artists?

jdsmn21

And how upset would you be if that $8700 was now $7500 after 6+ months. If you’d be upset - find a CD or HYSA

Gierling

At that point he would have been smarter to buy CD's with it.

Wide_Financial

With that money you are set for life. Buy a modest house and put the rest on CD. You're retired and nothing will take it away from you unless you die or a meteor hit earth.

Facebook_Lawyer_Gym

I'm not sure if it's worth you time, but bills/bonds have some advantages over CD's. Bonds will offer a little more interest than CD's typically can and they can be bought and sold on the secondary market without losing interest (Some CD's will penalize you for early withdrawal.) It's also easy to ladder bonds with a click of a button through platforms like Fidelity.

ZjY5MjFk

Treasuries aren't hard to understand, it's just like a CD, but issued from the government. You can buy them from most brokerages either secondary or though auction or get them on treasurydirect.gov (official government web site). Spend 20 minutes googling and you'll understand the basics of treasuries. I would also suggest looking at ibonds though treasurydirect. These are non-marketable bonds and only personal (citizens) can buy them. There is a limit of $10K/year, but they can at times give favorable rates. But they are a bit more confusing then normal treasuries.

elk33dp

ItS tHe PrINcIpLE. If OP called the broker he could probably get an answer and sort it out. Honestly it could be anything ranging from: 1) not have the exercise option on the app due to low volume/niche product, 2) Etrade forgetting some idiots will want to exercise it at a loss and need their "burn my cash" button enabled. 3) Limited functionality on the platform if OP is trying to do it on mobile. Schwab doesn't let you access their CD+Bond page on mobile. Desktop only for all of it so I couldn't buy or sell brokered CD's on mobile if I wanted to.

__redruM

SGOV would give you better tax advantage without worrying about banks playing games with CD rates. But if you live in a state without income taxes it wouldn’t matter. SGOV is currently paying 3.71%

Defiant-Fee-7550

Loading my Girls Gone Wild Spring Break edition CD into the goon machine ...😏👍

IntrepidFig1609

At 73 , I’m heavily into laddered CD’s, with dividend utilities for equities. About 50/50 I never really understood bonds, treasuries, etc. like I should. I figure CD’s are totally safe (at least inflation matching). My thinking is bonds, etc wouldn’t get me that much more gain. Am I wrong? I did my heavy equity investing until about 70.

InternalAd853

There is an Etrade Bank (Morgan Stanley?) offering a 4.75% CD, not bad. I like having a US Treasury Direct account, there are 5% things, various Notes (like a 1-7 year CD), kinda fun to play with. Zero risk 5% is fairly easy these days. Equity, stocks, the recently discounted HESM looks interesting, buys at $32 or so yield close to 10%, reported on a 1099. Stuff like ARLP (the MLP world) can pay 10%, Fed tax deferred. Just stuff that can be considered, lots of "stuff" out there!

LionRivr

First off, most of cryptocurrencies are outright scams. The ones that aren’t scams are either failed startups, or failing startups with hopes and dreams. Bitcoin is neither of those. At this stage, some argue it is “digital gold”. I would argue it, just not here, since Bitcoin is not an “investment” in the eyes of many people here. Secondly, only buy something you actually understand. And it seems like you don’t understand it at all. To be fair, the short-term volatility risk and past association with criminal activity still gives a bad taste to most people who do not actually understand bitcoin. Also many argue the “intrinsic value”, or that it is not a “physical” asset. Which is weird, in a world where many things are digital, and a world where people are willing yo pay thousands for pokemon cards, or millions for a painting. In certain spaces, Bitcoin is slowly gaining credibility as a “hedge” against monetary debasement. In general, cash is trash due to inflation. Currency will always inflate. So your options are generally: \- Real Estate \- Stocks (individual or indexes) \- Gold/Silver \- Treasury Bonds/Bills \- CD’s or high yield savings accounts All decent options, but there are pros and cons for each. If your goal is to time the market, stay away from Bitcoin. Nobody knows anything and there are far too many risks to consider if you don’t understand what you are buying.

The_Last_Crusader

Not every espp plan is structured the same when it comes to discounts and purchase period lengths. A plan that offers purchasing at a discount against the lower value of the stock priced at time of enrollment vs the day of purchase usually will give you a better return than a 6 month CD.

Thin-Weight-6264

yeah 4.3% is quoted as an annualized rate. For a 6‑month bill you’d actually earn about half that over the period – roughly 2.15% on your principal. If you’re only hoping to earn a few hundred bucks over six months, a CD at \~4.1% is pretty close and generally easier to order. Just remember Treasury interest is state‑tax‑free, so the after‑tax draw is a bit higher than a regular CD.

StatingObviousFacts

u/CD274 iono

browhodouknowhere

You're actually an idiot... All the information available and you choose stupid. Should of bought a CD

TimeTravelingChris

He has 10,000 AOL minutes on CD.

Low_Plastic363

It's the peak of nasal whinecore. They must have lost their All 4 One CD.

AllCapNoBrake

Actually one could argue it would be less since you're no longer able to write-off the interest....for me it's 2.25%, which I can get greater returns via a bank CD.

TheInsaneOllie

Yes, get a CD instead. You can’t currently get 5% returns without any risk in the bond market

TechnicalLeg841

A 20yr bond is a specific bet that interest rates will stay flat or go down. Sure it can be sold, but if interest rates rise by say an additional 1% in those 6 months, the value of the bond has decreased by about 10%. OP seems to be better served by answer like: A) Preserve capital with a CD or SGOV or 6 month bond (and settle for 4%ish range), or B) Purchase bond funds or individual bonds with longer durations and slightly higher rates (4.5-5%) *if you think interest rates will stay flat or drop in 6 months*, with a major risk that rising interest rates could cause a loss of 5%-10% of the value

RomanticFastball80

You're overcomplicating this a bit. Individual bonds held to maturity do lock in the rate, that's the whole point. The bond funds you mentioned fluctuate because they're constantly buying and selling bonds to maintain a target duration, so the price moves with interest rate changes. For a 6 month parking spot just buy a treasury bill directly on Fidelity or Vanguard. The rate you see when you purchase is what you'll get at maturity, no surprises. A CD works too but treasuries are more liquid if you need to bail early, and you skip state income tax on the interest.

Lucky_Platypus341

Brokerages like Fidelity also allow fee-free purchases of bonds and is a MUCH better platform than TreasuryDirect. Fidelity also allows you to set up bond/CD ladders to roll forward without a gap if you prefer. I-bonds are the only reason I can think of to use TreasuryDirect.

KweenieQ

I would buy a CD. Also look at the secondary bond market for discounted issues that mature about when you need the cash back. (An outside chance, but looking costs only a few minutes of your time.)

awohio1

If you don't think you will be withdrawing it before 6 months, a 6 month CD is about as easy as you can get. Fidelity has a variety of 6 month CDs earning 4.3%. To get 5% rates, you need to have a longer term than 6 months. 2 year CDs earn about 5%. Treasuries need to have a 5 year maturity before you get up into 5%. A short term bond fund like FSHBX shouldn't have much volatility, and it is currently yielding 4.75%. FXNAX and FTBFX are total bond market funds and include longer term bonds which do have more volatility.

greytoc

I'm not a fan of CD's - I prefer to use a target maturity fund. What duration are you seeking? Most bond funds are usually target duration funds - like FXNAX and FTBFX. If you want to lock in a rate - you need a target maturity fund. There are currently a few investment managers that offer target maturity bond funds. These include: * Blackrock's iBond products * Invesco's Bulletshares products * SSgA myIncome products * one other that I can't remember These target maturity products only go out 5 years unfortunately so if you want more duration - you have to buy the treasury or bond yourself. Most brokers like Fidelity and Schwab have fixed income services and you can just buy them online. 5 year target maturity tresury funds are currently around 5%.

tech01x

A lot of this depends on your tax situation. HYSA is obviously straight up income, taxed at ordinary income progressive rates. You might want to lower your taxes by seeking investments that have tax equivalent yield, but lower taxation. Stuff like SGOV. Or you might take a small portion of that and expose it to principal loss (even if it is temporary) like municipal bonds of your state (completely tax free) or TLT. Of course, HYSA interest rates adjust relatively quickly to changes in interest rates, so if you believe these interest rates won’t stay here, and will drop, then things like CD ladders and treasury/municipal bonds might make sense. Especially if you don’t expect to have to pull from all of this all at once.

Douglas_Fresh

"Though reverse engineering is allowed" lol. WTF is going on? We are essentially talking about mass theft. And if this is how we want to look at it, then everything is essentially worthless. What happened to the days of "you wouldn't download a car" I mean, this is exactly the same as ripping a CD and then burning it onto a blank disk, de-construction and re-construction. There will be laws against this, and I think soon. Just because AI can does not mean it should.

Piano-bandit

Anyone good at squeeze stocks, what's going on with $CD

spacecityjason

Go buy CD’s or Treasury Bills/Notes. Higher rates there and still no risk.

OpenLinez

I just did another CapOne CD at 5.4% (11 months fixed). And just for the hell of it, I put direct deposit from a monthly royalty account into X Money and it's 6%. Of course it's promotional but nobody asks if your money came from a promotional rate.

Over-Computer-6464

HYSA and CD rates take a month or two to adjust to rate changes. That is why in 2020 I sold a lot of treasuries and bought CDs. The CDs remained at higher interest rates for a month or two after treasury rates dropped in March/April 2020.

skychief99

I'll check that out after installing AOL from this cool CD I just got in the mail.

sharp315

1. set aside emergency funds in a CD or HYSA 2. open a taxable brokerage account and invest what you can in VOO 3. later, once you have income, you can open an IRA account and sell down your taxable positions to contribute to the IRA. try to maximize your IRA contributions each year.

FractalFunny66

There is no one right answer because the stock market IS now divorced from the economy and I have no idea how to tell what to do. I did what you did with SOME of my money. Basically, the best rule of thumb is the old saying: Don't put all your eggs into one basket. Put half the money into the stock market. Put 1/4 into fine gold or diamond jewelry or other hard valuable collectibles that appreciate over time. Put 1/4 into a high yield CD and pay attention when it renews so you get the highest rate each time it renews. You are doing very well for someone who is so young.

ConsistentMidnight57

Out of those, treasuries is best for short term and bonds for long term. Hysa for extremely short term/liquid. Never a CD.

Jubenheim

This sub is likely infested with bank bots trying to astroturf legit investment discussion CDs have almost never, in their entire lives, ever been a better investment than treasuries. There have been few exceptions in the past, especially when bank accounts weren’t so shit, but trying to chase a CD that gives 4.2% (which I doubt exists for anything larger than a small bank) when treasury yield rates are already higher AND sellable on the open market is fucking stupid. There’s no reason to lock your money with a bank with a CD (aka, a Certificate of Depreciation) ever. When the day comes they beat treasuries again, sure, I guess, but I can’t remember the last time they were meaningfully better.

Jubenheim

That’s foolish to think. Not “trusting where the dollar is going” is not a reason to forgo investing in treasuries. Unlike a CD, you’re not locked in for years, you’re allowed to sell your treasuries on the open market, and you also make higher percentage gains, which are locked in at purchase. Why would you trust a random bank over the government of the country? You realize if the country fails, your CD will ALSO fail?

ConsistentMidnight57

Huh? What do you think a CD is? The bank buys a treasury with your money and gives you a rate less than what they get and pocket the rest. Buying directly is a better choice. Also if the dollar dies then all currency dies.

ConsistentMidnight57

Instead of a CD just buy the treasuries directly. Not only do you get a better yield, but you're also exempt from state tax.

AllCapNoBrake

Imagine what you would have had if you had just put that into a CD or Treasury Bond https://preview.redd.it/qgw1iibyfhth1.png?width=399&format=png&auto=webp&s=f48cbc1e7c93c325fa1a68d01fb74e2942bd3b9e

Onnimation

How about you lock in a CD rate at 4.6% with 200k? That will generate you close to $700/month. My local bank offers me 4.6% "managers special"

Fluid_Description842

If you like this kind of action, wait til you here about the fantastic returns on CD's

graygarden77

If you have 41,000 in Ohio savings account, that’s nice but you’d be better to have that in a higher yielded situation like a CD which is risk free or an index find, which is not risk free, but which can results in higher gains. If it was me I would keep 12,000 -15,000 cash and then split the rest between CDs and investments.

Arnab_Goswami_RTV

Whats a CD

fomoandyoloandnogrow

Jokes on you. Flip phones are back, next come CD’s

anonymous_ghost-1

Most people here don't know much about Walkman or Minidisk. Portable CD plater was a bitch when you where out running.

PHL1365

I was just evaluating strategies on how to invest that cash. Just wanted to get something a little bit better than SGOV or CD rates. In the meantime I was evaluating how to create a medium term bucket inside my IRA. Google basically said I don't need one.

Illustrious-Swan-638

Well I put in 10 percent of my salary in 401k, the Vanguard 2065 Retirement Trust Fund. So roughly 7700 a year there, I plan on splitting my CD up when it matures in February. 5000 in bonds 10,000 in the S and P 500 Index 6000 in a 529 plan for my nieces and nephews I also have a house, worth roughly 215,000 with the principal amount owed being 175,000 So on a passive year, about 7700, on an active year, like 20,000?

SmallCapsOnly

Not even as niche as that. A 7 year fixed annuity right now guarantees 6% annual compounding interest in a tax deferred status that yields an annual compounded return of 7.19% annually by the end of the 7 years. It’s basically a glorified CD and many states have state based protection of a fixed annuity up to $250,000 including interest similar to FDIC insurance if the annuity company were to default or go out of business.

Famous-Cream-8221

Daaamn NKE imagine being an employee with RSUs and company stock bc you believed.. better off in a 2% bank CD lol

SouthofCentralCoast

Yes to USFR. I just checked Morningstar and over the last 9 years on a price of around $50 it's moved around 30 cents. That's including the 2019 Covid crash. I've had this and BIL, and my direct objective with these is something better than a bank and I can withdraw at any time (unlike CD).

KweenieQ

I like the Roth idea as well. While those funds are still captured in the trad IRA, RMDs are subject to taxation as ordinary income, even equity growth that in a taxable account would be taxed as a capital gain instead. So VOO in a trad IRA might not be the best asset location. Ironically, you'd do better with CD or bond positions. VOO would be better in a Roth (up market) or taxable (down market) account. My inherited IRA contains a dividend stock, a bunch of CDs, and Treasuries. I always have the coming year's RMD in the sweep account and/or slated to mature when I need it.

BakerXBL

You’ll make less than a CD as banks don’t leave free money on the table.

SomePolack

Literally watched a 1-yr CD at 4.5% sell out in real time today Someone bought $80k at once lmao

SomePolack

You can already get 2-yr CD’s at 5%

Onnimation

I see why my bank tried to offer me a 4.6% manager special CD rates when I went in today 💀