Which Option is Optimal for Short-Term Cash: Bank CDs, Brokered CDs, or Treasuries?

SaveBetter No-Penalty CD (2.55% APY): Today we respond to a viewer's question about bank certificates of deposit versus brokered CDs. Here is the viewer's question: "I'd like to move some [money] to a CD - and don't understand the difference in buying a CD through my brokerage (Fidelity) - which is showing products with high rates or buying directly through a bank like the SallieMae Save Better listed in the newsletter? I feel confident in Fidelity and I'm not sure about an online bank I've not done business with/can trust?" It's a great question, In the video, I cover traditional bank CDs, no-penalty CDs, brokered CDs and short-term (1 year or less) Treasuries. Join the newsletter: ———————————— Video Resources ———————————— SaveBetter No-Penalty CD (2.55% APY): Fidelity Brokered CDs: Fidelity Treasury Bonds: ———————————— Investing Tools ———————————— My Book (Retire Before Mom and Dad): Personal Capital (Investment Tracking, retirement planning): New Retirement (Retirement Planner): Stock Rover: M1 Finance $30 Bonus (IRA & Taxable Accounts): ———————————— Credit Cards & Banks ———————————— My Favorite Credit Cards: My Favorite Online Banks: ———————————— Popular Videos ———————————— 1️⃣ How to Create a 3-Fund Portfolio: 2️⃣ How I Manage 28 Accounts in One App: 3️⃣ 7-Step Financial Checkup: #retirement #investing #robberger ABOUT ME While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money. I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom ( LET'S CONNECT Youtube: Facebook: Twitter: DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions. AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom....(read more)

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Bank CDs vs Brokered CDs vs Treasuries: Which is "Best" for Short-Term Cash? When it comes to short-term cash investments, it's important to find a reliable and secure option that offers competitive returns. Bank certificates of deposit (CDs), brokered CDs, and US Treasuries are three popular choices for conservative investors. Let's take a closer look at each of these options to determine which one is the "best" for short-term cash. Bank CDs, also known as time deposits, are offered by banks and credit unions. They provide a fixed interest rate and term, typically ranging from a few months to several years. Bank CDs are insured by the Federal Deposit Insurance Corporation (FDIC), which protects deposits up to $250,000 per account holder per insured bank. This insurance gives bank CDs a high level of security, making them ideal for risk-averse investors. The interest rates offered by bank CDs are generally lower compared to other options, but they tend to be more stable. Brokered CDs, on the other hand, are available through brokerage firms and offer a wider range of CDs compared to those offered by individual banks. When purchasing a brokered CD, investors can choose from various banks and credit unions, enabling them to diversify their investment across different institutions. Brokered CDs can offer higher interest rates than traditional bank CDs, making them an attractive option for those seeking better returns. However, it's important to note that brokered CDs are not insured by the FDIC. Instead, they may be covered by other securities such as the Securities Investor Protection Corporation (SIPC) or private insurance. US Treasuries are debt securities issued by the US government. They are considered one of the safest investments available, as the US government has never defaulted on its debt obligations. Treasuries come in different maturities, ranging from short-term to long-term. Short-term Treasuries, known as Treasury bills (T-bills), have maturities of one year or less. They are highly liquid, which means investors can easily buy and sell them in the secondary market before they mature. While Treasuries don't offer as high returns as CDs, they provide a safe and stable investment option. So, which option is the "best" for short-term cash? It depends on your priorities and risk tolerance. If preserving capital is your top concern, bank CDs are a solid choice due to the FDIC insurance. However, if you're looking for higher returns and are willing to take on slightly more risk, brokered CDs might be more appealing. If safety is your main priority, US Treasuries are an excellent option. Before making a decision, it's crucial to consider your investment goals, time horizon, and risk tolerance. Evaluate the interest rates, insurance coverage, and liquidity of each option. Additionally, consult with a financial advisor who can provide personalized guidance based on your unique circumstances. In conclusion, when it comes to short-term cash investments, Bank CDs, brokered CDs, and Treasuries all have their advantages. Each option offers varying levels of security, return potential, and liquidity. By assessing your financial goals and risk appetite, you can determine which choice aligns best with your needs and make an informed decision regarding your short-term cash investment strategy. https://inflationprotection.org/which-option-is-optimal-for-short-term-cash-bank-cds-brokered-cds-or-treasuries/?feed_id=130901&_unique_id=64e87f0b0865a #Inflation #Retirement #GoldIRA #Wealth #Investing #bankcd #brokeredcd #CD #certificatesofdeposit #nopenaltycd #treasuries #treasurybills #treasurybonds #VanguardIRA #bankcd #brokeredcd #CD #certificatesofdeposit #nopenaltycd #treasuries #treasurybills #treasurybonds