September 1, 2023 APY

for a Three Month CD: 5.458%

for a Six Month CD: 5.47%

One Year CD: 5.40%

Two Year CD: 5.10%

why not always buy the shortest term with the highest yield?

The only reason I can think of to go long end of the curve is to lock in a good return and forget about it- knowing that rates will be FALLING over the next year or two.

what's the best strategy here?

LMCane said:

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September 1, 2023 APY

for a Three Month CD: 5.458%

for a Six Month CD: 5.47%

One Year CD: 5.40%

Two Year CD: 5.10%

why not always buy the shortest term with the highest yield?

The only reason I can think of to go long end of the curve is to lock in a good return and forget about it- knowing that rates will be FALLING over the next year or two.

what's the best strategy here?

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Think you figured it out already. IF rates drop by one percentage point across the board tomorrow, you're going to have to reinvest the 3-month CD at a much lower rate. The 2-year CD would have you locked in at the better rate for a longer time.

Thanks, it seems then it makes the most sense to lock in at a 2 year rate of 5.1%

If you are trying to lock in a higher yield over a longer period make sure you look for call protected CDs

permabull said:

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If you are trying to lock in a higher yield over a longer period make sure you look for call protected CDs

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interesting I am not familiar with that..

I just bought JP Morgan CDs for expiration 9/13/2024 at 5.5%

sounds good enough for me.

Did not know this, thanks for the heads up.

My Merrill Lynch guy stated in email that this CD I just purchased is FDIC protected

FDIC insurance has nothing to do with the CD being callable or non-callable.

Thanks for the bump on this thread.