Certificates of deposit, or CDs, have long been a staple in conservative retirement portfolios. They promise safety, predictable returns, and an easy set-it-and-forget-it approach for those who don’t want to weather stock market volatility. But in today’s high-inflation environment, many retirees are wondering: Is locking money into a CD still a wise move, or are you effectively losing purchasing power while thinking you’re playing it safe?
The answer isn’t as simple as yes or no. CDs can still serve a purpose, but the value they provide depends on how inflation, interest rates, and your personal financial situation interact. In this blog, we’ll unpack the risks, benefits, and hidden considerations you need to weigh before putting your money into a CD in 2025 and beyond.
