Long Term CD Rates
Long term CD rates typically bring in a higher yield than short term CD rates. However you should take the time to compare all certificate of deposit rates because sometimes this rule doesn’t always hold true when investing your money. Keep your money in your checking account until you find a good rate. If you want a liquid account with an interest rate you should look at our savings account rates.
If banks believe that interest rates are going to drop in the future, they’ll lower their long term rates to the point that you can get a better rate for a shorter term CD. This is why it’s always worth shopping around for your CDs. If you’re looking into an IRA, long term IRA CD rates are the way to go.
However you should take into consideration that if you get a short term CD because the rate is very close to that of a long term CD, then the rates drop across the board, you’ll be forced to renew into a lower rate CD when your certificate matures. It’s up to you to decide if you think rates are going to fall in the future or if they’re going to be on the rise. If you think they’ll fall you should go with something with a longer term.