My extensive experience in the personal finance sector has led me to delve deeply into the world of certificates of deposit (CDs) over the past year. The surge in interest around this topic is not surprising, especially considering that the Federal Reserve’s series of interest rate hikes in 2022 and 2023 pushed CD rates to exceed 5%. This is a significant deviation from the norm. However, with recent cuts in the benchmark rate, including one in September and another this month, we may see a decline in these rates.
In light of the recent media frenzy and the prevailing urgency to secure high-rate CDs while they last, I’ve made a conscious choice to resist the hype. Instead of chasing after these high rates, my focus has shifted to making contributions to my brand-new retirement account, which is an essential step for my financial future. Here’s the rationale behind my decision.
Navigating Life’s Challenges: Why Retirement Investing Can Be Overlooked
How did I find myself opening my very first retirement account at 40 years old? Throughout my earlier career, I earned just enough to cover my bills and debts, leaving no surplus for investments. Moreover, I lacked access to any employer-sponsored retirement plans or matching contributions, making it nearly impossible to prioritize retirement savings during those years.
In 2021, I transitioned careers and began to increase my income in this new field. However, my initial focus with this newfound earning potential was not on investing. I prioritized paying off debt and saving for a home. In 2022, I accomplished my debt repayment goal, and earlier this year, I successfully purchased my first home. This progress has finally positioned me to start investing for retirement, which I began just last summer.
Top High-Yield Savings Accounts to Explore in 2024
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American Express® High Yield Savings 
APY 4.00%
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Member FDIC.
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APY 4.00%
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Min. to earn $0 |
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Capital One 360 Performance Savings 
APY 3.90%
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Member FDIC.
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APY 3.90%
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