000 in a CD for 10 years, and inflation rises over those 10 years, the buying power of that $1,000 isn’t what it was at the time of the deposit. CD interest rates increase with inflation because the bank must offer a better return to make its CDs competitive. So, buying a long-...
Differences between CDs and high-yield savings accounts CDs and high-yield savings accounts have several differences, such as:Duration CDs are intended to be used for a set duration. A 5-year CD, for example, is meant to be held for five years. At the end of the term, CDs often have...
It is worth checking around rather than just opening an account at your bank. The rates can vary widely. In late 2023, a time of relatively high inflation, rates ranged from 0.03% to above 5%. CD buyers are committing their cash for a period of time, ranging from three months to 10 y...