As of August in 2018, everything I'm reading is projecting rising interest rates for a while.
Assuming that this is what happens, is it better to deposit money into a shorter-term CD (at a lower interest rate now) with the expectation of redepositing into another CD later (at a future higher interest rate) or to deposit into a longer-term CD (at a higher interest rate now)?
I'm curious if there's any existing advice on something like this since I could otherwise fairly easily calculate the future interest rate required to make it worthwhile.
As an example, say a 4-year CD is currently offering 2.65% APY and a 2-year CD is currently offering a 2.5% APY. Over 4 years, the former would gain ~11%. Over 2 years, the latter would gain ~5%. Redepositing the 2-year CD into another 2-year CD would require a 2.79% APY. In other words, I'd have to expect interest rates to rise by ~11.6%, or ~0.2 points, over two years for it to make sense.