“Cash needed in 2 to 5 years could be invested in something like a CD that could provide more yield than a savings account but maintain relative safety,” says certified financial planner Zack Hubbard at Greenspring Advisors.
Accountįor savers who know exactly when they’ll need cash or those looking to generate income in retirement, CDs not only help diversify a broader investment portfolio, they can earn a decent amount of interest. Indeed, here is FDIC data showing average CD APYs, and below are the latest average rates on CDs, according to data from Bankrate released on May 3, which used overnight average rates of advertisers on its site.
