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Why do CD interest rates increase with longer terms?
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Why do CD interest rates increase with longer terms?
business & finance
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Jul 4, 2023
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Douglas Obrien
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Because the longer you loan someone money(even a bank) the more risk you are taking. The biggest risk of a CD is that your rate will not keep up with inflation.. . Mortgage rates are the same way, a 15 year loan has lower rates than a 30 year loan.
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Jul 7, 2023
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Julie Gleeson
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Jul 12, 2023
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Douglas Obrien
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Because to have their money tied up longer, investors demand more compensation. Otherwise, they wouldn't bother with the longer-term CDs
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Jul 6, 2023
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Jeffrey Sweeting
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