Short Term CD Rates
When investing in a CD you want to take advantage of the best investment rates possible. The interest rates that are offered can help you decide in short term vs long term CD rates. If you’re looking at CDs for IRAs, the best IRA CD rates are probably longer term rates.
The biggest advantage of a short-term certificate of deposit is that your money is locked in for a short amount of time. Because of the higher liquidity of short term CDs, interest rates are typically lower one shorter terms. They still beat out keeping your money in a checking account or savings account.
What can help you make the decision on short term vs long term CDs is what kind of interest rate environment there is. When banks are unsure as to where interest rates are going to go in the future, they may offer better short term CD rates. When banks are confident in future rates, they’ll typically offer better long term CD rates.