Should You Invest Your Retirement Savings in CDs?
In 2022 and 2023, the Federal Reserve raised interest rates numerous times in an effort to cool inflation. That's resulted in higher borrowing costs for consumers, which isn't a great thing.
But on the plus side, higher interest rates mean that savers can now earn more in a CD. And that might seem like a hard opportunity to pass up.
Many banks are offering CDs with yields between the 4% and 5% mark, depending on term. And the nice thing about a CD is that your principal deposits are protected provided that you bank at an FDIC-insured institution and you limit your deposit to $250,000 (or $500,000 if there's a joint owner on your account).
Source Fool.com
