Quote:
Originally Posted by retiredguy123
I understand the concept of buying at a discount and paying capital gains rates. But, looking at the CDs available at Fidelity, you can buy a 2 year CD that pays 4.85 percent interest and then see what interest rates do in 2 years. I can't see committing money for 5 years at a lower interest rate, when interest rates are rising.
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You don't even have to go out 2 years on a CD. 3 month CD is 4.01%, 6 month is 4.55%.
Tbills are 4.39% on 3 months and 4.57% on a 6 month.