3 CD account questions to ask after this week's Fed meeting
Summary
The Federal Reserve is very likely to keep interest rates the same in its June meeting. Many savers have been benefiting from high interest rates on certificates of deposit (CDs), which offer fixed returns above 4%. Savers should think carefully about whether to wait for potentially higher rates, which CD terms to pick, and how to spread their money across different account types.Key Facts
- The Fed meeting is scheduled for June 16 and 17, with a 99% chance rates will stay paused.
- Chances of a rate cut are just over 1%, so rates are expected to remain steady.
- Currently, many CDs offer fixed interest rates over 4%, depending on the term length.
- Waiting for higher CD rates after a possible future rate hike might result in lost interest earnings now.
- Short-term CDs (3-6 months) may be good if you expect rates to rise soon.
- Long-term CDs can lock in current high rates if you expect rates to fall later.
- Early withdrawal from CDs incurs penalties, so pick terms carefully.
- Other savings options like high-yield savings and money market accounts offer competitive rates with more flexibility than CDs.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.