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Personal Finance and Investing

surfered

(5,864 posts)

7. Current CD rates range from 4% to 4.6% for 3 months to one year

Reply to Mr. Scorpio (Original post)

Wed Oct 16, 2024, 04:58 PM

Oct 2024

Tell your friend he’s forgoing at least $400 per year in lost interest.

He should consider “laddering” his ten grand into several CDs like 3 month, 6 month, and one year maturities. This way every 3 months, he would have access to some money if needed. If not needed, then reinvest it another CD.

A banker should be able to explain this to him. Good luck and good on you for helping your friend.

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I've got a friend with ten grand sitting in a regular savings account doing nothing [View all] Mr. Scorpio Oct 2024 OP

There are still some CDs with good rates available if they are risk averse. we can do it Oct 2024 #1

That is exactly what we just did. nt Ferrets are Cool Nov 2024 #12

Is that the only money he has? If so, it marybourg Oct 2024 #2

Nah.... get it in a HYSA. Happy Hoosier Nov 2024 #11

10K is good starting point to starting for multigraincracker Oct 2024 #3

At 75 I'll keep my $ in savings Lebam in LA Oct 2024 #4

Cash is a demand on future consumption bucolic_frolic Oct 2024 #5

I'm very skittish and don't like risk - at all MaryMagdaline Oct 2024 #6

Current CD rates range from 4% to 4.6% for 3 months to one year surfered Oct 2024 #7

Yup. The OP should ask his friend if he likes free money! A HERETIC I AM Oct 2024 #8

Capital One has some high interest savings accounts nearly as good as CDs. nt CoopersDad Oct 2024 #9

Having an emergency fund in cash is a good idea... Happy Hoosier Oct 2024 #10