CD account moves savers should make with inflation rising again
Summary
Inflation has started rising again, which is affecting interest rates on savings accounts called certificates of deposit (CDs). Savers can benefit from higher CD interest rates now, but they should carefully choose the right rates and terms to protect and grow their money.Key Facts
- Inflation rose recently due to higher oil prices linked to the war with Iran.
- The Federal Reserve delayed interest rate cuts, and rate hikes might happen again.
- Current CD rates above 4% can help savers keep up with or beat inflation.
- Savers should compare multiple CD offers instead of accepting the first high rate they find.
- Longer-term CDs offer higher rates and protect funds with fixed rates for longer periods.
- Early withdrawal from a CD can cause penalties that reduce earned interest.
- Keeping CD deposits at a moderate level helps savers avoid losing money if early withdrawal is needed.
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