Beyond being safer than your mattress, a typical savings account doesn’t offer much these days. Rates are at a generational low and with no way to tell when or how fast they’ll rise, figuring out where to park your cash is harder than ever.
One product that might be able to provide a higher rate than a savings account with the same kind of safety and guaranteed return is a 5-year CD.
In a world where liquid savings rates are often below 1%, it’s possible to find banks that are offering 5-year CD rates at least double that, says Richard Solomon, managing director at Novantas, a banking analytics and consulting firm.
“It’s where the banks have the most room to sort of go out with higher rates,” Solomon says. “A lot of the banks do think there’s a lot of power in breaking certain thresholds — 2% is a big one.”
Read the full article at Bankrate.com…