# Investing in CDs for the newbie. Barclays? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [February 4, 2024, 7:11pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099 "2024-02-04T19:11:14Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![mixdenny](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mixdenny/32/2962_2.png) [@mixdenny](https://boards.straightdope.com/u/mixdenny)\ **Post date:** [February 4, 2024, 7:11pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/1 "2024-02-04T19:11:14Z")
CD interest rates are so much higher then savings accounts right now. I have never bought any CDs before. I have been reading guides to get started. It looks like online CDs are the way to go. I am looking at Barclays 12 month CD with a APY of 5.30 which is at the top of the lists on several investment sites. In the fine print on Barclays site it states, “Fees could reduce earnings on the account.” However I don’t see anything about specific fees mentioned. As I understand it, as long as you let the CD mature there should not be any fees or penalties. What kind of risk is there? [https://www.banking.barclaysus.com/online-cds.html?cjdata=MXxOfDB8WXww&AID=15294912&PID=3842381&SID=09f7cfd0e7ef410d8f2717c1d132730c&cjevent=586b8d32c38f11ee83be03a80a82b838&refid=CJNNWRTCD2023](https://www.banking.barclaysus.com/online-cds.html?cjdata=MXxOfDB8WXww&AID=15294912&PID=3842381&SID=09f7cfd0e7ef410d8f2717c1d132730c&cjevent=586b8d32c38f11ee83be03a80a82b838&refid=CJNNWRTCD2023) ---
**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [February 4, 2024, 7:18pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/2 "2024-02-04T19:18:16Z")
A risk is that you will have an emergency need for funds so need to cash the CD immediately. Or suppose that there is a massive inflation surge and rates shoot up–but you are still only getting 5.3% on your CD. ---
**Author:** ![Twoflower](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/twoflower/32/22_2.png) [@Twoflower](https://boards.straightdope.com/u/Twoflower)\ **Post date:** [February 4, 2024, 7:33pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/3 "2024-02-04T19:33:48Z")
If there’s a chance that you might need the money, there are also high-yield online savings accounts, without the restrictions of a CD. I have savings at Ally and Capital One that are earning 4.35% right now. ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [February 4, 2024, 7:43pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/4 "2024-02-04T19:43:22Z")
Fidelity and Vanguard Treasury money market funds are just under 5%. Vanguard has their Vanguard Cash Plus Account. 4.7 APR and FDIC insured to $1.25 million. No fees. ---
**Author:** ![mixdenny](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mixdenny/32/2962_2.png) [@mixdenny](https://boards.straightdope.com/u/mixdenny)\ **Post date:** [February 4, 2024, 7:48pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/5 "2024-02-04T19:48:30Z")
I see the Vanguard high yield savings account is called a “Bank sweep”, what does that mean. Also. the interest rate is not locked in like a CD? This is money I do not need to access as I will leave enough in regular savings account for that purpose. ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [February 4, 2024, 8:04pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/6 "2024-02-04T20:04:45Z")
> **[What Is Insured Cash Sweep? - NerdWallet](https://www.nerdwallet.com/article/small-business/insured-cash-sweep)** > > Insured Cash Sweep accounts distribute funds across a network of partner banks so that you don't exceed the $250,000 covered by FDIC insurance at any one bank. > Insured Cash Sweep accounts offer a solution by placing your deposits, in $250,000 increments, across a network of FDIC-insured banks. Combined, those partner banks can provide several million dollars in FDIC coverage. ---
**Author:** ![OldOlds](https://avatars.discourse-cdn.com/v4/letter/o/a3d4f5/32.png) [@OldOlds](https://boards.straightdope.com/u/OldOlds)\ **Post date:** [February 10, 2024, 5:33pm UTC](https://boards.straightdope.com/t/investing-in-cds-for-the-newbie-barclays/997099/7 "2024-02-10T17:33:48Z")
I’m a little late to this party, but here goes: Fidelity’s money market is paying 5% right now. Of course, if rates come down the MM will come down faster than a CD (since the CD is fixed for its duration) but are very liquid. Fidelity also makes it very easy to buy a CD ladder. One year ladders are currently at 5.08%, and you have 1/4 of your money maturing every three months (if a 1 year ladder) and you can always stop the auto-roll.