CD Ladder vs High Yield Savings - How To Build a CD Ladder Savings Strategy
16.3 هزار بار بازدید -
4 سال پیش
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CD Ladder vs High Yield
CD Ladder vs High Yield Savings Account - Which is the best place for your savings in 2021? Even with record low interest rates, a CD Ladder may still be the best savings strategy for your money. High Yield Savings accounts are the more popular option right now, but are high yield savings accounts better than CD Ladders for your emergency fund?
💰 INVEST WHERE I INVEST - M1 FINANCE💰 : https://m1finance.8bxp97.net/YgxeBr
0:00 - Intro
01:03 - What Is a CD?
01:35 - What is a CD Ladder?
03:33 - Why Build a CD Ladder?
05:22 - 10 Year Treasury vs 5 Year CD
06:20 - What about Inflation?
07:05 - CD Ladder or High Yield Savings Account?
08:10 - Who is a CD Ladder right for?
09:27 - CDs for Large Purchase Savings
11:15 - Where to Find the Best Interest Rates (Not Sponsored!)
Music in all my videos via Epidemic Sound: https://www.epidemicsound.com/referra...
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Follow me on social media and let's invest together!
Instagram: Instagram: jay.fairbrother
Facebook: Facebook: JayRFairbrother
Twitter: Twitter: jayfairbrother
In this video we'll discuss: What is a CD (Certificate of Deposit), how interest earned in savings accounts used to outpace inflation!, what is a CD ladder, how to build a cd ladder, and whether a cd ladder in 2020 is still a good option for your money.
We've been in a low interest rate environment for many years now. With falling interest rates, earning interest on your short term savings becomes difficult. A high yield savings account vs a cd ladder is one of the options for a savings strategy that will earn the most interest. A high yield savings account is completely liquid, while a certificate of deposit only lets you access accrued interest before the maturity date. Both CDs and high yield savings accounts are FDIC insured to $250k. And the interest earned both on a cd ladder and a high yield savings account is 100% passive income.
The 10 year treasury yield is commonly used as the "risk free rate" and the current interest on a 5 year cd is almost double this rate with NO risk for balances less than 250,000! This makes a certificate of deposit a decent option for short term savings yields. And if you build a cd ladder you can protect yourself from changes in interest rates and inflation by always having a set amount of principal reaching maturity at the intervals you choose.
A high yield savings account is the best place for your emergency fund and 6-12 months of savings. But if you have cash beyond this you want to keep safe buying a certificate of deposit or building a cd ladder is a great option.
#cdladder #highyieldsavingsaccount #certificateofdeposit
DISCLAIMER: Jay Fairbrother, including but not limited to any guests appearing in his videos, are not financial/investment advisors, brokers, or dealers. They are solely sharing their personal experience and opinions; therefore, all strategies, tips, suggestions, and recommendations shared are solely for entertainment purposes. There are financial risks associated with investing, and Jay Fairbrother’s results are not typical; therefore, do not act or refrain from acting based on any information conveyed in this video, webpage, and/or external hyperlinks. For investment advice please seek the counsel of a financial/investment advisor(s); and conduct your own due diligence.
AFFILIATE DISCLOSURE:
This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Jay Fairbrother is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. However, this DOES NOT impact my opinions and comparisons. Thanks for your support!
CD Ladder vs High Yield Savings - How...
💰 INVEST WHERE I INVEST - M1 FINANCE💰 : https://m1finance.8bxp97.net/YgxeBr
0:00 - Intro
01:03 - What Is a CD?
01:35 - What is a CD Ladder?
03:33 - Why Build a CD Ladder?
05:22 - 10 Year Treasury vs 5 Year CD
06:20 - What about Inflation?
07:05 - CD Ladder or High Yield Savings Account?
08:10 - Who is a CD Ladder right for?
09:27 - CDs for Large Purchase Savings
11:15 - Where to Find the Best Interest Rates (Not Sponsored!)
Music in all my videos via Epidemic Sound: https://www.epidemicsound.com/referra...
WATCH NEXT:
✅ Beat Inflation with Your Savings with I-Bonds - I Bonds Explained - EVERYTHING You Ne...
✅ How To Build a T-Bill Ladder (And Why You Need One!) How To Build A T-Bill Ladder 2024 (An...
✅ 4 I Bonds Strategies You NEED to Know - 4 Unique I Bonds Strategies You NEED ...
✅ Treasury Bills Explained - Everything You Need to Know About T-BIlls Everything You Need To Know About T-B...
Follow me on social media and let's invest together!
Instagram: Instagram: jay.fairbrother
Facebook: Facebook: JayRFairbrother
Twitter: Twitter: jayfairbrother
In this video we'll discuss: What is a CD (Certificate of Deposit), how interest earned in savings accounts used to outpace inflation!, what is a CD ladder, how to build a cd ladder, and whether a cd ladder in 2020 is still a good option for your money.
We've been in a low interest rate environment for many years now. With falling interest rates, earning interest on your short term savings becomes difficult. A high yield savings account vs a cd ladder is one of the options for a savings strategy that will earn the most interest. A high yield savings account is completely liquid, while a certificate of deposit only lets you access accrued interest before the maturity date. Both CDs and high yield savings accounts are FDIC insured to $250k. And the interest earned both on a cd ladder and a high yield savings account is 100% passive income.
The 10 year treasury yield is commonly used as the "risk free rate" and the current interest on a 5 year cd is almost double this rate with NO risk for balances less than 250,000! This makes a certificate of deposit a decent option for short term savings yields. And if you build a cd ladder you can protect yourself from changes in interest rates and inflation by always having a set amount of principal reaching maturity at the intervals you choose.
A high yield savings account is the best place for your emergency fund and 6-12 months of savings. But if you have cash beyond this you want to keep safe buying a certificate of deposit or building a cd ladder is a great option.
#cdladder #highyieldsavingsaccount #certificateofdeposit
DISCLAIMER: Jay Fairbrother, including but not limited to any guests appearing in his videos, are not financial/investment advisors, brokers, or dealers. They are solely sharing their personal experience and opinions; therefore, all strategies, tips, suggestions, and recommendations shared are solely for entertainment purposes. There are financial risks associated with investing, and Jay Fairbrother’s results are not typical; therefore, do not act or refrain from acting based on any information conveyed in this video, webpage, and/or external hyperlinks. For investment advice please seek the counsel of a financial/investment advisor(s); and conduct your own due diligence.
AFFILIATE DISCLOSURE:
This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Jay Fairbrother is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. However, this DOES NOT impact my opinions and comparisons. Thanks for your support!
CD Ladder vs High Yield Savings - How...
4 سال پیش
در تاریخ 1399/06/07 منتشر شده
است.
16,320
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