A 4-year CD might be the answer to a question a lot of savers are asking these days: How do I get more yield without taking on more risk?
While nowhere near what they once were, yields on longer-term CDs far outstrip those on a savings account, as long as you’re willing to let your money sit for a while — or pay an early withdrawal penalty.
[…] Also, banks are increasingly offering nontraditional CDs with yields that can rise under certain circumstances, says Richard Solomon, managing director at Novantas, a banking analytics and consulting firm.
“Banks are looking at adding different forms … of nontraditional CDs, such as bump-rate or step-rate CDs,” Solomon says.
If you’re worried about falling behind if rates — and inflation — creep up after you lock in your money, these types of rising-rate CDs may be worth considering.
Read the full article at Bankrate.com…