Why Investing in CDs May Not Be the Best Choice for You
Wednesday, 15 May 2024, 09:00
Reasons to Avoid CDs at 5% Rates
CD rates are impressive, but there may be better options for your money. Here are three reasons to consider other investments:
- Stock Market Potential: Investing in the stock market can provide higher returns than CDs, with the S&P 500's historical average above 10%.
- Tax Considerations: CDs may not be tax-efficient, especially in high-tax states. Exploring alternatives like Treasury bonds can offer better tax advantages.
- Accessibility: CDs have restrictions on withdrawing funds, unlike high-yield savings accounts that offer easier access to money for emergencies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.