CDs are a good source for short-term growth and targeted use
Ascend’s new CD rates are still in the 5% range, higher than most other institutions. These are offered for a 6-month term, targeting short-term savers with a specific purpose for the funds. The CD requires an ACH deposit and is purchased through an FDIC-insured institution. Ascend charges no fee or commission on the deposit, and the account is in the purchasers name,
CDs are a decent tool for short-term savings for targeted funds, but are not recommended for long-term accumulation goals. When clients purchase CDs through Ascend Financial, most have a targeted use for the funds such as purchasing a new car, preparing for a house down payment, or for setting aside funds for a family trip. We generally recommend trying to leverage CDs for long-term accumulation since the historic trend of CD rates is very poor.
3-Year CD Average Rate — 4.51%
5-Year CD Average Rate — 3.38%
10-Year CD Average Rate — 2.73%
Using CDs for long-term accumulation is chasing a declining rate. Fixed rates peaked in 2024 and are beginning to slide again. With several more Federal Reserve meetings scheduled in 2025, it’s likely rates may decline further. For clients looking to leverage their money for long-term accumulation, Ascend offers several others that will offer a higher and features that CDs just cannot match.
Reach out to Ascend to schedule an appointment to look further into Ascend’s CD products and other options available for savings. We offer full-service financial planning strategies for individuals, retirees, and business owners.