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Have short-term CD rates peaked? Here's what experts say

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Short-Term CD Rates,Experts,Inflation

Thanks to inflation and the Federal Reserve's moves against it, interest rates are high. For consumers with savings and certificate of deposit accounts (CDs), that has meant abnormally high APYs — and interest earnings — for much of the last two years. The trend has impacted all CD terms, but short-term CDs, in particular, have seen rates skyrocket. In fact, short-term CD rates have actually been higher than those on long-term ones — the opposite of how CDs traditionally work. This won't last forever, though. And with the Fed indicating rate cuts could be coming soon, the days of sky-high short-term CD rates may be numbered as well. That's why it's important to know what experts have to say about short-term CD rates. Are you considering opening a CD now? See what short-term rate you could lock in here today.

Thanks to inflation and the Federal Reserve's moves against it, interest rates are high. For consumers with savings and certificate of deposit accounts , that has meant abnormally high APYs — and interest earnings — for much of the last two years.The trend has impacted all CD terms, but short-term CDs, in particular, have seen rates skyrocket. In fact, short-term CD rates have actually been higher than those on long-term ones — the opposite of how CDs traditionally work.

Short-term CD rates could drop by summerMost likely, experts say, short-term CD rates will hold steady around their current range and then start dropping by late summer. 'CD and other deposit account rates typically move up or down with changes to the Fed funds rate,' says Chris Cucci, senior vice president of Climate First Bank.

 

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