CD deposit amounts vary based on individual financial situations and goals, according to experts. Contrary to the fixed amount mindset, consider how long you can tie up your money without penalties. Steven Conners advises looking at income towards retirement investments first. Teresa Greenip emphasizes building an emergency fund before investing in CDs.
To choose the right amount, experts recommend considering three priorities:
1. Building an emergency fund that covers 3-6 months of living expenses.
2. Evaluating upcoming expenses and life circumstances to determine a “safe-to-lock” amount for your CD deposit.
3. Balancing CDs with other savings tools, like high-yield savings accounts or money market funds.
Experts warn about the importance of debt management and reviewing the fine print before opening a CD account. Compare offers from several banks, and speak with your financial advisor to ensure it fits into your overall savings strategy.
Source: https://www.cbsnews.com/news/how-much-should-you-deposit-in-a-cd-right-now-heres-what-experts-say