I'm looking at either a new issue CD(5.35%) or a Money Market(5.03%).

At this moment in time would you lock in the rate or stay liquid in the money market?

I like flexibility and liquidity. YMMV, depends on your risk tolerance and if you may need the money.

Lock in

I have noticed the better CD rates are getting shorter time period, like only 8 months.

Problem is you can't lock in very long at anything over 5%

Either one is a good just depends your and how long you want to tie up cash

The experts keep saying interest rates cuts are coming, but that still hasn't happened. Just a few months ago they were saying 3 interest rate cuts were coming in 2024, you see that hasn't happened yet.

Be very careful with CD's

I received an unsolicited post card from Edward Jones in the mail yesterday. Interest rate for 3-mo was 5.3, 6-mo 5.3 and 1-yr was 5.09. I was interested

Read the very tiny fine print. If Cds are sold prior to maturity, the investor can loose principal value and a bunch of other garbage. Yields quoted are net of all commissions.

Nope.

Living in good times right now when either choice looks good.
Others comments are right on and you likely know that.
Your possible need for the money is one factor and trying to anticipate rate changes is separate. No one knows but an informed “guess” should be better than a coin flip. I pay a guy to make those type decisions for me.

Money Market funds are probably investing in T-Bills. Cut them out of the picture. Treasury Direct's website takes some getting used to, but a 30-Day T-Bill is pretty liquid.

https://ycharts.com/indicators/1_month_treasury_rate

https://www.treasurydirect.gov/

It's horrible...I used it to buy some series I bonds and it almost not worth it. But I did eventually figure it out and it's been well worth the hassle.

Why not both...diversify?

That's Edward Jones for you. Go to an actual real bank and CD's are great. I just had one mature and got 18K for doing nothing.

This reminded me to renew mine. Think I’m going Texas Capital Bank, 5 percent.

All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.

Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access

Incorrect

They have CD up to 5 years

Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I?

Yep

Robinhood money market account at 5.25% for first 3 months, then it goes to 5%

The 5% in your example is the APY, which is annualized. So 9 months is 75% of a year. That means you would earn ~75% of the annualized 5% rate. Say you started with $10,000. At the end of 9 months, you'd get 9/12 * 5.0% * $10,000 = $375 in interest plus your initial deposit of $10,000.

Those same experts predicted a recession last year. Talking heads. I would listen to RedRanger before CNBC!!

CD for us these days. Keep a few Benjamins in a Money Market as well for easy access. 5.25% is easy money in my opinion if you have cash to sit on for a bit.

That is a great rate on the money market, but it can change very quickly.

I am recommending one year CD's for my clients, even though our 90 day CD's have a higher rate.

Happy to answer any questions anyone might have! I manage a branch of a Texas-based bank in Austin.

I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days.

I will take 5% with no risk all day long. As others have said if you have other access to money then locking in a CD for a year or two is good stuff IMO.

For money you are willing to lock up for longer a multi year fixed annuity is paying in the 6% range and that rate is guaranteed either 3 or 5 years (your choice) and all of the earnings are tax deferred until you withdraw it. No fees other than a penalty if you withdraw more than 10% in a single year.

I have placed some of my long term money into several 5 year fixed annuities at 6%.

Is there a 10k limit on t bills. ?

There is no limit that I'm aware of. I've been buying some here and there for years. A few of them are auto-renewing every week.

I don't understand why anyone would mess with CDs or money market funds when these 30-Day T-Bills are getting about 5.5% with no time commitment beyond 30 days. I have a family member that had money market funds frozen during the 2008 financial chaos. They got their money, but they had to wait.

Here are some money market fun times:
https://www.gao.gov/products/gao-23-105535

There is in an I bond, but I’ve put more than that in a 13 week T-bill recently. Another plus is you don’t have to physically go to the bank and fill out a bunch of paper, like when I bought a couple CDs last year. It can be handled on the Treasury website.