Can you beat 5.65% over the next five years?
It’s an innocent question, but perhaps a timely one. The FOMC meets next Tuesday to decide what comes next for interest rates. Some are predicting that that what comes next is nothing, which is to say, no rate hike. If so, the 5.65% currently offered by Raymond James Bank looks enticing.
We have mixed feelings when it comes to locking up money in fixed-income instruments these days, as our various posts over the past weeks and months suggest. But we’re also an adherent to the school of thought that the future’s uncertain, even if the end isn’t near. As such, we’re predisposed to take a good deal when we see one.
Granted, there’s been a devaluation in good deals of late, and so we’re reduced to looking for the next best thing. By that diminished standard, 5.65% on a five-year certificate of deposit looks pretty good. As we write, 5.65% from Raymond James Bank is within a few basis points of the highest-yielding CDs in the nation, according to Bankrate.com.