Signs You Shouldn't Rush to Open a CD Even Though Rates Are Above 5%
Sunday, 28 April 2024, 12:30
4 Signs You Shouldn't Open a CD Even Though Rates Are Above 5%
CD rates are high, but that doesn't mean everyone should have one. Watch for these four red flags that suggest a CD could be a bad financial move for you:
- You don't have an emergency fund: Start by building your emergency fund in a high-yield savings account.
- You already have a lot of money invested into CDs: Consider diversifying your investment portfolio with options like T-bills.
- You haven't maxed out your 401(k) match yet: Prioritize maximizing your employer match before considering a CD.
- You have a lot of high-interest debt: Pay off high-interest debt before investing in a CD.
Make informed decisions about your investments based on your financial situation and long-term goals.
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.