4%, 5%, higher? Amid Fed rate hikes, here’s how to do the math on whether a higher CD rate is really worth it

Andrew Shilling at MarketWatch, in its Ask the Advisers column, wrote about how to do the math on whether a higher CD rate is really worth chasing as the Fed pushes yields up and banks compete aggressively for deposits. He asked me where the line sits.

My view is that savers should think in terms of a break-even point, the dollar amount where the extra yield outweighs the hassle of moving money to a new account. For me, that number sits between $25,000 and $50,000. A 0.50% rate spread on $5,000 is only $25 a year, which is not worth the hassle of opening a new account.

The takeaway is to do the arithmetic before you rate shop. A higher advertised rate means little if the balance is too small for the spread to matter. The article lays out how much money you need to make rate-shopping worth the effort.

Read the full article at MarketWatch →

Jeff Judge Managing Partner

Jeff is one of Chesapeake’s founding partners and a go-to advisor for professionals navigating complex transitions like retirement, business sales, or sudden windfalls. With nearly two decades of experience, he’s known for delivering calm, clear guidance when it matters most. Clients say working with him feels like talking to a longtime friend, if that friend happened to be an award-winning financial expert.

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