Why Investor Interest in CDs is Rising
More generous yields, access and asset protection prompt investors to look again.
Certificates of deposit have been in the doghouse for years, with rock-bottom yields leaving investors cold.
But now things are changing. Government insurance for CDs looks more appealing as stock and bond markets get shakier and yields on the most generous CDs are competing with those of U.S. Treasurys. Many experts say CDs can be a good choice for investors aiming to avoid risk, earn some interest and have ready access to principal.
“CDs are becoming very popular among investors because of high-interest yields in comparison with Treasury notes of the same maturity,” says Edith Muthoni, chief editor at LearnBonds, a bond-information website.