I have a 2-year CD that matures in about a month. I bought it in 2019 before the COVID-19 stuff happened, and it has an interest rate of 1.50% or so.

The local banks are offering insultingly low rates – .03 or .05%. Credit unions are offering .65% for 1-year and .80% for 2-year CDs. The bank-by-mail (that is, internet banks) are similar to but a little lower than the credit unions are offering.

Here’s my question:

Since (theoretically), inflation is going to pick up later this year, would it make more sense to buy a 1-year renewal and then hope that rates are up in June 2022? Or would you get the 2-year renewal now, knowing that by 2023 rates might be considerably higher?

aside: the difference in income between .60% and .80% amounts to about $2.00 per month for this investment, so either approach isn’t going to make me rich.

What’s your take on interest rates for the next couple years?