Mosied over to the bank to roll over a CD in my aunt’s trust account. The “banker” kept trying to get me to take the longer term CD, at a lower rate. He kept insisting that interest rates are trending down, will soon be back down below 2%. I reminded him what would happen if all the tariffs are enacted, to inflation, and interest rates. He wasn’t impressed. I don’t recall anyone trying to push me into a longer term, lower rate, CD before.
Steve
I do the same for my mother. One problem I’ve been running into lately, CDs getting called early because of falling interest rates. While on an individual basis amounts to a few dollars, for the banks over 100,000s CDs it adds up. So now I make sure the CDs aren’t callable. Just one more thing.
Also with preferreds, some are callable and some aren’t.
DB2
They (especially JP Morgan) have been selling callable CDs for a tiny rate bump of 0.05%. That means the buyers are selling them an option for a measly 0.05%. I will never be one of those buyers. If I’m going to sell that option, I want way more than 0.05%. But apparently they still find plenty of suckers that are willing to give them that option almost for free.