by ericnager on Feb 19, 2019
When you factor in taxes and inflation, 12-month CDs haven’t offered a positive real return for a decade.
Low interest rates make life difficult for people who save their money or rely on their investments for income. Twelve-month CD rates have been below 2% since 2008, and they were just 1.29% at the end of 2018. When you factor in taxes and inflation, 12-month CDs have provided negative real returns 15 out of the last 20 years and haven’t offered a positive real return since 2008.
How Inflation and Taxes Have Affected CD Return Rates