Does a CD account interest rate lock make sense after this week's Fed meeting?
Summary
The Federal Reserve is not expected to lower interest rates soon, which means higher rates are likely to stay for now. Savers may benefit from locking in high interest rates with certificates of deposit (CDs), as traditional savings account rates are falling.Key Facts
- The Federal Reserve is unlikely to cut interest rates after its April meeting.
- High interest rates are expected to remain steady for some time.
- CDs offer a fixed, higher interest rate and protect the initial money deposited.
- Banks may raise CD rates slightly after the Fed meeting due to uncertainty.
- The next Federal Reserve meeting is not until mid-June, giving savers time to choose good CD rates.
- Traditional savings account rates are dropping, now averaging about 0.38%.
- Locking in a CD rate now could earn more interest compared to keeping money in a regular savings account.
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