Regional banks are aggressively marketing CD investing products to attract deposits, with APYs hitting 5.25% on select terms, responding to competition from online banks and brokerage platforms. Remember, current CD rates aren’t far off their recent highs. Investors have an opportunity to secure attractive rates on both short-term and long-term certificates. By placing a larger lump sum into your CD account, you can earn substantial interest. A six-month CD can earn savers hundreds and even more than a thousand dollars in interest now, or it can earn very little, depending on your initial deposit. But with rates here still high, the fixed rate able to withstand rate changes ahead and alternative savings vehicles likely to be less profitable in the months to come, this could be a viable, short-term home for some of your money this October. With equity market P/E ratios above long-term averages, CD investing serves as a conservative counterweight. Analysts expect its role in portfolios to expand if earnings growth stalls.
