The Federal Reserve just raised rates for the first time since 2023, but that doesn’t necessarily mean retirees should wait for CD rates to climb. Some one-year CDs were already paying more than 4% as of September 18, creating a different question: Is the guaranteed return available today good enough for money you know you won’t need?
Retirees who have been watching certificate-of-deposit rates just received an unexpected reason to take another look. On September 16, the Federal Reserve raised its benchmark interest-rate range by a quarter percentage point, reversing the direction of the rate cuts Americans saw in 2024 and 2025. That doesn’t guarantee every bank will immediately increase its CD rates, but it changes the calculation for savers who were worried that attractive yields were about to disappear. As of September 18, some competitive CDs were still paying around 4% or more, substantially above the national averages offered across the market. Is now the time to lock in a CD? Here’s what you need to know.
