CD Rates Are Rising, But Treasurys Are Still The Better Investment

Summary

  • Bank CD rates are finally climbing toward reasonable levels. How long has it been since we have seen 3% for a 3-year term?
  • But across most short-term maturities, U.S. Treasurys offer better yields, ultimate safety and freedom from state income taxes.
  • Bond funds are taking a hit as rates rise. Investing in U.S. Treasurys with a buy-and-hold strategy is a safer way to respond to rising risk.

Read my full analysis on SeekingAlpha.com

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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