eyes on
CDs
Interest rates are high right now, which means it’s expensive to get a loan (hi, mortgages) but lucrative to save. Enter: CDs, aka certificates of deposit. They’re a popular alternative to high-yield savings accounts because they’re low-risk and tend to offer decent rates. The catch? Based on your terms, you won’t be able to touch your money (without penalties) for a few months or even a few years. The reason: You’re paid a fixed interest rate on a regular basis during the CD’s term length. (Note: CDs are usually insured by the FDIC, so if you stay under the $250,000 limit, your money is safe.) Before you lock up your cash in a CD, here’s what you need to know.
Your move:
Invest money you don’t need ASAP. There are penalties for early withdrawals, so don’t tie up money you’ll end up needing during your CD’s term. Pro tip: Don’t use one for your emergency fund.
Go for shorter terms. Usually, longer term CDs have higher rates than shorter term ones. Think of it as a reward for parting with your $$$ for longer. But that’s not necessarily the case right now because a possible recession (read: potentially lower rates) is looming.
Ladder your investments. Invest your money in various CDs with different term lengths. That way, you stagger your returns and have more liquidity, which means having cash available in the short term.
for the group chat
No matter how much cold water the Fed throws onto the economy…
The job market is still flourishing.
Homeowners are “quiet quitting” the housing market…
Leaving fewer options for would-be buyers.
If you want to get the most out of your credit card…
Take advantage of alllll your perks.
The secret to multitasking?
Spoiler: There isn't one.
Highs and Lows
It’s been a rough few months for regional banks (see: several failures and rate hikes). However, their stocks are starting to rebound, including PacWest’s shares, which shot up again this morning after an 80% jump on Friday. This comes after JPMorgan Chase bought First Republic Bank last week, a move that caused several regional bank stocks to crash. Is this the end of the banking crisis? It’s too early to tell, but some experts think more rallies are in the future for regional banks.
5-minute money tip
Google your salary.
Pay transparency is finally a thing. Eight states now have laws on the books that require companies to disclose salary ranges in job postings. Plus, recruiting platforms like Handshake have seen an increase in employers posting pay ranges. So before your next job interview or one-on-one meeting with your boss, take a sec to Google your current (or potential) position. Look at what other companies are paying for similar roles and leverage that data so you’re paid what you’re worth.
Want more salary negotiation tips? We’ve got you covered.
Design: theSkimm | Photos: SDI Productions via iStock, SDI Productions via iStock
Subject Line: “They Don't Love It” by Jack Harlow
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