Here’s the Single Best Strategy for Investing in CDs When Rates Are About to Fall
According to the CME FedWatch Tool, analysts predict a 91.7% chance of the Fed cutting rates at its Sept. 17 meeting — and more cuts could follow. Certificate of deposit (CD) rates are already on the decline — and if interest rates fall, CD rates will likely fall even further.
That makes the next few weeks an important window for savers. To earn more on your cash while still keeping some flexibility, I recommend locking in today’s higher rates by building a CD ladder. Here’s how.
What a CD ladder is (and why it works)
A CD ladder is a way of splitting your money into CDs of different lengths. Instead of putting all your cash into one CD, you divvy it up and stagger it.
Here’s why people do it:
- CDs offer a guaranteed rate of return.
- CDs…
