High CD Rates Could Change in 2024

Despite expected Federal Reserve rate cuts, scenarios such as rising inflation or global events could lead to an increase in CD rates.

CD rates are currently high, with some offering rates of 5.75% or higher, due to the Federal Reserve's 11 rate hikes over the last 18 months.
Experts expect the Federal Reserve to lower its benchmark rate in 2024, which could impact the rates offered on high-yield savings accounts and CDs.
Despite the expected rate cut, there are scenarios in which CD rates could rise in 2024, including a rise in inflation, an increase in home sales leading to higher rates, or global events that push up inflation.
CDs have fixed rates, which means that the rate stays the same throughout the entire CD term, making them a good option for savers in the current high-rate environment.
When choosing a CD, factors to consider include interest rate, term length, penalties for early withdrawal, financial goals, automatic renewal, minimum deposit requirement, FDIC or NCUA insurance, interest payment frequency, inflation protection, and the terms and conditions.