How long will US interest rates stay like this?
My savings and deposit accounts are nearing maturity, and I'm debating whether to renew them. I wonder if I should lock in for a longer term now, in case rates go down.
These days, the news is all over the place—everyone says something different—so I really don't know what's right.
9 answers
Honestly, nobody knows. I was curious about that too, so I watched three or four expert videos, and they all had different conclusions lol
At current interest rates, I think locking in for the long term is the answer. I locked into a 3-year term last year and have zero regrets now. Once deposit rates fall to around 1%, many people will regret not doing the same.
Well, I'm not so sure about that... Just because interest rates are cut doesn't mean deposit and savings rates will immediately drop sharply, and rushing to lock in for a long term doesn't seem like the best move either.
I’ve been thinking about this too, and I feel more at ease splitting it—half into short-term and half into long-term. If you go all in at once, it hurts when rates go up later and feels like a missed opportunity when they go down haha.
Does anyone have a source?
The reason the news keeps contradicting itself is that nobody's sure. So I just keep a fixed-rate product as my base and put the rest in a parking account. I'd rather take the sure thing than stress over predictions.