Why would a person invest in a CD at 0.6% when the rate of inflation usually hovers at 3%? : personalfinance


I’m sure that 3% was just an example, as the CPI hasn’t been that high in a while, according to the BLS.

A High Yield Savings Account typically offers rates similar to CDs, but the rates change with the market. A CD will lock in whatever rate, regardless of whether the market goes up or down. Not to add to more confusion, but some CD products allow you to “raise your rate” if the market does improve, which would be in your favor.

Good luck!



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