They Say Rates Are Falling: Should I Switch My Savings/Deposits Now?
I got a text from my bank about my deposit maturing, and the rate for renewing it is definitely lower than last year. There's also news that a rate-cut cycle has started.
So I'm not sure whether I should lock it in for the long term now, or put it in a high-yield savings account and wait. I'd like to hear your thoughts.
10 answers
Once the rate-cut cycle begins, rates on parking accounts start creeping down first. By then, it's already too late to switch. I think you're better off locking in whatever you can now.
I'm in the same boat, and I'm finding the comments helpful. ㅠ
Well, that's a bit too definitive. It's risky to lock everything into long-term deposits just because rate cuts have started. Have you thought about how people who locked in 1%-range time deposits for five years back in 2020 must feel now, seeing 5% rates? The post also seems to judge based only on the news—have you checked your own financial plan or each bank's preferential rate conditions?