If you want to lock in a high rate of return on your savings, certificates of deposit (CDs) are still offering some of the best rates we’ve seen in years—but they might not stay this high for long.
The COVID-19 pandemic drove inflation through the roof, and the Federal Reserve raised rates to cool off prices—to the benefit of CD investors. Now the Fed is cutting rates again as inflation falls. There were three rate cuts in late 2024, and the best CD rates fell from highs of around 6% to less than 5% in a matter of months.
