Bank offering 4.9% APY on 14 month CD (30 y.o.)

[zams]

I've abided by one principle with my investing throughout my twenties - build an emergency fund, then stay the course with steady investment into mutual funds and ETFs.

But when things like a 4.9% CD come up, I don't know how to react - especially considering the uncertainty of the economy right now. At what point does it make sense to go with the high-interest CD over the mutual funds/ETFs? At 30, am I still young enough that the long-term gains in the stock market would be dumb to pass up?

 

[chesed73]

@zams

At what point does it make sense to go with the high-interest CD over the mutual funds/ETFs?

When the money is needed in less than 5 years.

 

[lovinjesus4ever]

@zams Right now you can do better with a TBill, because you pay no state income tax, so I would not lock in a 14mo bank CD right now personally.

 

[resjudicata]

@zams 3 month T Bill after tax New York equivalent yield is exactly 5% right now. T Nills are not subject to local and State taxes. The normal yield is 4.688%. The 5% is better to compare to CD interest.

And I am only locking it up for 3 months. The Fed is slated to continue to raise rates for the next several months. So the T Bill rate is likely to be higher.