Banks are cutting rates in anticipation of Federal Reserve rate cuts. Here's what the pros say to do next.
As the Federal Reserve rate cuts near, investors will likely soon see the juicy yields on their cash start to tumble. In fact, banks have already started to slash their payouts. Last week, three online banks cut their 1-year CD rates, according to BTIG. The biggest decline came from Capital One , which decreased its CD by 50 basis points to 4.5%. One basis point equals 0.01%. Marcus by Goldman Sachs cut its rate by 15 basis points to 5% and Sallie Mae shaved 5 basis points off its CD to 5.1%.
Another thing to consider is if you want the guarantee of insurance through the Federal Deposit Insurance Corp. CDs and savings accounts are typically FDIC insured for up to $250,000 per depositor, while money market funds are not. One way to deal with the liquidity issue and lock in some yield is to do CD ladders, if you have your cash needs staked out, Benz said. For instance, you can buy 3-month, 6-month and 9-month CDs to get varying maturity dates.
Stock Markets Capital One Financial Corp Goldman Sachs Group Inc SLM Corp Synchrony Financial Jerome Powell Winnie Sun Cathy Curtis CFP Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Zelle scams prompt federal probe into whether banks are doing enough to protect customersAt least two major banks have reported that the Consumer Financial Protection Bureau is examining how they handle customer disputes about Zelle transfers.
Read more »
This bank cut the 5.25% yield on its 1-year CD. Where to find compelling ratesSeveral banks are trimming back yields on savings products well before the Federal Reserve cuts rates.
Read more »
Federal court declines to rule on Jersey City federal cannabis lawsuit, for nowNeals did give Jersey City a sliver of hope, saying the stay in this case is “pending the outcome of the state administrative proceedings and any related appeal.”
Read more »
How Trump Reshaped Federal Courts and What to Know About the Federal JudiciaryFederal judges have a substantial amount of power when it comes to decisions about Americans’ reproductive health care and more.
Read more »
Federal prosecutors: Resigned Alaska federal judge had conflict of interest in 23 criminal casesThe revelations about the compromised cases illustrate the growing fallout over former U.S. District Court Judge Joshua Kindred’s resignation.
Read more »
Resigned Alaska federal judge had conflict of interest in 23 criminal cases, federal prosecutors sayThreatening to take action, Alaska’s federal public defender’s office is expressing concern with the U.S. Attorney General’s Office after U.S. District Court Judge Joshua Kindred resigned following an investigation that revealed he had engaged in inappropriate conduct with attorneys who appeared before him.
Read more »