Now might be a good time to shift some of your investment money into Certificates of Deposit. CDs currently offer an excellent alternative to stocks because you can get almost 5.5% APR return for one year.
CDs are a good option now:
- CD Rates are high
- The Fed will probably drop rates a couple time this year
- You will have a better APR locked in while others drop
- FDIC insured
As I have mentioned before there are online savings accounts that have APYs around 5.50% so that is an option as well. However, if rates do go down, so will the APY on these savings accounts. Therefore, if you lock in a good CD rate you will be able to capture the upside of the high rates for longer. Also, if you begin to ladder some CDs now you can keep those high rates even longer and protect yourself from falling rates when the Fed makes their Fed Fund Rate cuts later in the year. Now you need to go out and find the highest yield CDs available.
Bankrate.com can give you the highest yield CD available for specific time ranges and minimums: Highest CD yields.