It is a well-known fact that fuel and energy costs along with food cost are not included in the inflation data that the government provides the public. However, if you ask 100 people whether or not they are feeling the effects of inflation, I’d be willing to bet that 95% of them would say yes. The reason is simple. Food and energy costs is in everybody’s wheelhouse. Consumer prices continue to rise at a blistering pace, as a result of increases of fuel and food prices. Combating inflation is always a challenge for the average consumer.
One of the things that most people can accomplish with relative ease is building a CD ladder. Inflation and interest rates generated walk in lockstep of one another. A certificate of deposit ladder takes advantage of higher rates.
The way it works is, you invest in or by several CDs that mature at six-month intervals. Now, understand you won’t get as high a rate as you will on a longer-term CD, but she will have the ability to reinvest your money at higher rates of return when the interest rates start to rise. This way you are always taking advantage of economic conditions. Investing in anything has to do with averaging your cost and total investment. Laddering a CD portfolio is a lot like dollar-cost averaging when you buy stocks. You don’t invest all your CD money at one low rate of return.
Building CD ladders may not be the most glamorous way to invest your money, but it is steady and generally very safe. In years past CD rates and online savings accounts rates of more than 3% were very common. Now you’re lucky if you can find 1%, unless you want to tie up your money for the next five years.
This does not mean that you still can’t make money, if you search for a good rate diligently. You may want to consider an Ally Bank Certificate of Deposit . You will get a certificate of deposit with the highest fixed CD rate for a fixed term, with no monthly fees daily compounded interest for maximum earnings, your investment is of course FDIC insured, and you have the ability to withdraw and receive earned interest as income if that’s what you desire.
Again the idea is with CD laddering is that you’re always in and out of CDs taking advantage of market fluctuations and using them to your advantage. this it’s an idea that is where the of further research. As always check with your financial advisor or financial planner.
- Maximize your earnings. Period.
Get a certificate of deposit with our highest fixed CD rate for a fixed term.
- Open with $0
- No monthly fees
- Daily compounded interest for maximum earnings
- FDIC insured Maximize your coverage
- Automatic renewal at maturity
- Ability to withdraw and receive earned interest as income — just let us know before the CD maturity date or by ten days after
- Your term and rate will go into effect when you make your deposit
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