Money Management

CD rates are higher today than they’ve been in over two decades. But that could change in 2024. Find out why December might be the right time to get a CD. 

Taylor Swift may be Time magazine’s person of the year, but for people with savings, 2023 has undoubtedly been the year of the CD. If earning fixed income is your jam, then today’s top-paying CDs are your bread and butter, with APYs getting closer to 6% on short terms.

It’s been a great year to have extra savings, but if you haven’t capitalized on certificates of deposit yet, December might just be the best month to start. Here’s why.

Rates are high, but they might not stay this way for long

The biggest reason to lock in a CD now is that it’s very, very likely that CD rates will drop sometime in 2024.

To understand why, recall that CD rates are tied to the federal funds rate, which is currently sitting at a range of 5.25% to 5.50%. The Federal Reserve has gradually been hiking rates up to this range since March 2022, with almost no end in sight. Its tone changed significantly, however, in its December 2023 meeting, during which it signaled that rate hikes might be over. In fact, 17 of the 19 Fed policymakers now believe rates will be lower at the end of 2024 than they are today. This is in line with the continued decrease in annual inflation, as well as in the Fed’s last three decisions not to raise rates.

With the majority of Federal policy makers lacking confidence in continued rate hikes, it’s safe to say the CD party is almost over. In fact, I would even venture to say that short-term CD rates have already passed their peak. To give you some perspective, here’s how the national yield on a 3-month CD has changed since January 2023.

Based on this data, short-term CD rates very likely peaked in September 2023 and have since been slowly falling. Since banks, credit unions, and other CD providers base rates on what the Fed predicts, it’s very likely we’ll see these rates continue to fall going into 2024. That would make now the right time to lock in a CD, if you know one is right for you.

You might squeeze more interest out of a CD with a longer term

Right now, short-term CDs — like those with a 12-month term — offer higher interest rates than CDs with longer terms. This reflects the expectation that the federal fund rate will fall sometime in the future. Banks want to keep rates competitive, but if they’re paying high interest for two to five years, they could end up losing money.

Even if they don’t have the highest APYs, long-term CDs could also be a smart move right now. You’ll lock in an elevated rate for several more years, and you won’t have to worry about rates falling in 2024. This is especially true if you have savings that will just sit in a savings account anyways. As long as you don’t need that cash, you might as well lock in the higher rate while it’s still here.

Of course, you could also open multiple CDs. In fact, now might even be the best time to build out a CD ladder, combining short and long terms. This could give you more liquidity and ensure you’re never more than a few months away from accessing money in a CD. Some CD terms you might want to add to your rungs include:

6-month CDs12-month CDs18-month CDs2-year CDs3-year CDs4-year CDs5-year CDs

All things considered, if you know a CD is the right savings product for you, I wouldn’t hesitate to open one. While no one can predict the future, all signs are pointing to lower CD rates in the near term. Check out today’s top-paying CDs and lock in a high rate before they change.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Amazon is a Christmas shopping procrastinator’s best friend. Take a look at five great gift ideas for nearly any budget. 

I don’t like to think of myself as a last-minute shopper, but the evidence proves otherwise. I’m usually trying to think of a creative gift just a week or two before Christmas and kicking myself for not coming up with ideas sooner.

If you find yourself in the same situation, welcome to the club. Here are some quick gift ideas that won’t disappoint.

1. Kindle Unlimited subscription

2. Razor A5 DLX scooter

3. Columbia women’s waterproof hiking boots

4. Men’s Michael Kors watch

5. Samsonite 3-piece luggage set

All items on this list can be found on Amazon, and most should fit into nearly any Christmas budget. Remember that the best way to manage your Christmas shopping is to plan out what you want to spend ahead of time so you don’t put a strain on your personal finances.

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As an Amazon Associate I earn from qualifying purchases.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Target. The Motley Fool has a disclosure policy. Read More 

Now is a great time to make financial resolutions for 2024. But make sure you’re ready to commit. See why it pays to remain all-in on your goals. 

We’re well into the holiday season rush, and the new year is almost upon us. For many of us, now is the time to decide what financial resolutions we want to commit to in 2024. You’re not alone if you hope to make positive money changes next year.

Research from The Ascent shows that 67% of Americans plan to set New Year’s financial resolutions. Are you ready to make significant financial changes? You can do it! Going all in can be the best strategy. Find out what can happen when you commit to New Year’s money goals.

Your positive changes become habit

When you’re fully invested in making financial changes, your actions become part of your normal routine. As you continue to make consistent changes, your new behaviors will become a habit, which makes progress easier.

Building good financial habits can help you make lasting, lifelong changes, which is excellent news because that’s the ultimate goal.

You will improve your future

Putting in all that hard work now can make a huge difference later. By remaining dedicated, you can improve your financial future — and, ultimately, your life.

Paying off debt, improving your credit score, or building a sizable emergency fund are some ways you can improve your financial future so life is much less stressful down the road. It pays to remain dedicated.

You’ll see challenges as a problem-solving opportunity

When you set a goal but aren’t super committed, it’s too easy to give up when things get challenging. But by fully committing to your financial goals, you’ll see roadblocks as an opportunity to problem-solve. You’ll want to find a way through the challenge to reach your end goal.

Another benefit is that problem-solving skills can help you in other areas of your life.

You’ll feel motivated to keep going

When you’re fully committed, you’ll feel more motivated to continue your journey. It’s essential to stay motivated. Otherwise, you may feel discouraged, make excuses, or give up altogether.

You’ll feel even more invested in the outcome as you progress further toward your goals.

Now is the time to make money goals

2024 will be here before you know it, but it’s not too late to plan for the upcoming year. Now is the ideal time to decide what changes you want to make and what financial resolutions you will work toward next year. Don’t wait until the first few days of 2024 — or you may continue to delay.

Not sure what goals you want to work on? Some ideas include:

Building an emergency fundIncreasing your investment contributionsReducing your spendingBoosting your incomePaying off credit card debtSaving up for a down payment to buy a home

These are just a few suggestions. You can pick a big goal or several small ones. If you’re unsure what goals to set, review your finances to see what areas you could improve upon. Choosing a goal that you can seriously commit to can allow you to be more successful.

Need some help? Check out our free personal finance resources for additional guidance.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Even if you wait until the last minute to go holiday shopping, you can find unique presents that won’t break the bank. Check out these unique gift ideas. 

Now that we’re deep in the holiday season, you may feel stressed about all the gifts you still need to buy for your favorite people. I have some news that may ease your mind: It’s not too late to find gifts they will love. But you may be overthinking what to buy, resulting in further procrastination.

Here’s a collection of underrated gift ideas for last-minute shoppers like you. We’ve included options that fit every budget because the thought matters most, not the dollar amount spent.

1. Gas station gift cards

Gift cards are frequently given as presents during the holiday season. But at least in my experience, I’ve typically received gift cards for coffee shops, restaurants, and retail stores. However, a gas gift card is more unexpected — and it will likely be appreciated.

No one looks forward to filling up their gas tank. With this perfect gift item, you can make covering the next gas fill-up less stressful for someone on your holiday shopping list. This is also a great last-minute option because many retailers have gas station gift cards for sale.

2. A stocking full of toiletries

We all regularly use toiletries like toothpaste, deodorant, and shampoo. It can be frustrating having to run to the store at the last moment to stock up on essentials like this when you unexpectedly run out. Most of us have been there at some point in our lives.

If you’re looking for stocking stuffer–friendly gifts, why not buy your special someone a collection of their go-to toiletries so they’re set for a while? This present will make their life easier and save them a trip to the store. Plus, this is a budget-friendly idea. You may need to do some research ahead of time to figure out what their favorite products are — many people are particular about them!

3. A AAA membership

Nothing is worse than dealing with a flat tire or dead battery on a busy day. Why does it seem like car problems like this always happen when we least expect them? This holiday season, you can prepare your favorite person with the perfect gift — a AAA membership.

This may be an uncommon gift to receive during the holidays, but your recipient will thank you later when they need roadside assistance. Other little-known perks of a AAA membership include travel discounts and homeowners insurance discounts — so your loved one can also save money.

You can gift a membership through the AAA website. Prices vary by region and plan — but you can expect to spend at least $50 to buy a membership for one driver.

4. Give the gift of convenience — like grocery delivery

You probably have someone on your shopping list who lives a busy life with limited extra time to handle chores. Maybe that special someone is in grad school or works a job with long hours. Why not treat them to a service that will make their life more convenient and less stressful? One example is an Instacart+ membership. This paid membership offers savings on service fees and free delivery on eligible grocery delivery orders of $35+.

You can gift a three-month ($29), six-month ($59), or twelve-month ($99) subscription directly through Instacart and have it delivered by email — so it’s an ideal last-minute option.

5. Socks

I don’t know about you, but I’ll never turn down more socks. No matter how organized I try to be, I lose socks and end up with mismatched pairs. Socks are a practical gift, and it can be fun to shop for them. So why not get a few pairs for your best pal? You can buy them in just about any big-box or department store (or online), and this affordable gift won’t leave you with an empty bank account.

It’s not too late to shop

Your family’s holiday gathering may be quickly approaching, but that doesn’t mean it’s too late to shop. Don’t be afraid to get something out of the ordinary — your present will be more appreciated than you know. And remember, it’s the thought that counts.

But as you shop, keep your personal finances in mind. Avoid overspending beyond your means. The last thing you want to deal with in the new year is a credit card debt problem.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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The holiday season can feel overwhelming, but there is still time to buy amazing presents. Check out some cool presents that can be had for under $50. 

You’re in the right place if you’re still looking for the perfect holiday gifts for your friends and family. You may think your loved ones already have it all, but I can suggest some unexpected finds that they will love. If you have limited extra funds this holiday season, no problem. You can find great gifts for less than $50. Here are a few underrated gifts that won’t break the bank.

1. TONOR 12-inch Ring Light with Stand and Phone Holder: $49.99

2. Trekking Through History: The Family Board Game: $44.95

3. Verilux® HappyLight® Alba LED therapy lamp: $44.99

4. GARDENCUBE Hydroponics Indoor Garden: $47.99

5. Lyty Stainless Steel Electric Kettle with Thermometer: $42.90

Don’t neglect your budget

It’s not too late to buy great gifts. As you finalize your holiday shopping, don’t ignore your budget. You can find incredible presents that your favorite people will love without overspending. Having to crawl out of credit card debt at the start of the new year is not a situation anyone wants to get into. For additional tips, check out our free personal finance resources.

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As an Amazon Associate I earn from qualifying purchases.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy. Read More