American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
While investors may be hoping the Fed thinks twice about raising rates in September, it's a different story for savers who have been hard-pressed to find meaningful rates of return since 2008.
Even instruments like certificates of deposit, which generally offer higher rates in exchange for locking up savings for an extended period of time, have seen yields slip to historic lows—some lingering below savings account rates.
"Typically what you see is CD yields start to move up in anticipation, then that continues after the hike," McBride said. "This time around we haven't seen an anticipation move and even in response to it savers will have to shop around—a lot of banks are just going to hold the line at least at the onset."
But aside from the federal funds rate, another major factor is contributing to historically low yields that are averaging just 0.23 percent for one-year CDs. Banks are swimming in a wealth of deposits and don't have the loan demand to match. "That means it's going to take a long time before yields start going up," McBride said.
However, each bank is facing different goals and some can still take exception to the trend. As you can see from the examples here, some banks offer one-year CD rates that are lower than the annual percentage rates earned on their savings accounts while other banks still provide better CD rates.
That discrepancy in rates highlights why savers should shop around before taking the leap to lock up liquidity with a CD, said Jeffrey Tomaneng, a certified financial planner with Lincoln Investment Planning.
"If you're willing to take a look in the local market you might find smaller banks looking for liabilities on that side of their balance sheet offering a teaser rate to get you in," he said.
Still, despite the possibility of lower average rates for longer, the fact that CDs offer steady interest on risk-free, FDIC-insured principal could still make them reliable options for some savers—particularly retirees.
To his clients, Tomaneng said he advises they steer clear of CDs offering rate protection if interest rates move higher, noting that banks generally only bump rates to a fraction of where they should be.
Building a "ladder" out of CDs can help savers avoid locking in money at low rates. Savers buy CDs at staggering maturities, whether it's over several months or years. As CDs mature, savers can reinvest to benefit from rising interest rates for added flexibility.
"If you ladder CDs that mature at different intervals you'll be able to experience different rates along the way," said Christine Benz, director of personal finance at investment research firm Morningstar. She also recommends savers spread their CD purchases across banks to maximize FDIC protection, which only covers $250,000 per saver, per institution.