Those who were hoping for some relief from inflation were left disappointed this week after the latest report from the Bureau of Labor Statistics showed January inflation rising 3.1% year over year. While that was an improvement from the 3.4% rise shown in December, it was still a disappointing result, especially considering the Federal Reserve’s target 2% goal. 

It also put off — at least for now — any talk of imminent rate cuts. While hope was high that cuts could come as soon as March, it now looks more likely that May will see the first reduction — if inflation cools down enough by that point.

Against this backdrop, many borrowers have limited options due to higher costs for loans. Savers, however, are still in a prime position to earn great returns, at least for the foreseeable future. With this in mind, there are some timely moves those considering a certificate of deposit (CD) account may want to make with inflation still hot.

Start by exploring your CD account options here to see how much more you could be earning.

3 CD moves to make with inflation still hot

Here are three important CD moves to make while inflation is still high.

Get started

If you don’t have a CD set up right now, then the first thing you should do is get started. Whether it’s a short-term or long-term CD is not as important as just opening an account. After all, the average interest rate on a regular savings account right now is just 0.47% while CD rates go as high as 7% for some qualified savers. 

This means you’re losing money by leaving your funds untouched in a regular account. Of course, it makes sense to shop around to find an account with the best combination of a high rate and no fees, but even most standard CD accounts — whether online or with your existing bank — will offer better returns for a longer time than a regular savings account can. So don’t wait much longer.

Get started with a top-earning CD here right now.

Consider laddering accounts

An understandable concern in today’s CD market surrounds rates, specifically the timing of opening an account with today’s APYs. Should savers instead wait for the opportunity to open an account with an even higher one or should they just proceed right now? Those with these concerns should do both, actually, by laddering accounts so that they expire at different times. 

So, for example, consider opening 3-month and 6-month CDs simultaneously. This can do two things. It will let you immediately earn today’s elevated rates but it won’t lock up your money forever, allowing it to expire relatively quickly, at which point you could (in theory) reinvest it with an account at a higher rate. Just don’t wait for that ideal time because it may not ever present itself.

Mix up account types

CDs are arguably better than savings and high-yield savings accounts because they have higher rates than those latter two account types — and those rates will be locked for the full CD term, regardless of what happens in the overall rate climate. That said, it can be difficult to leave all of your money untouched in a CD (you’ll have to pay an early withdrawal penalty to access it early). 

So consider mixing up your account types. Specifically, it may be worth opening both a CD, with its fixed, locked rate, and a high-yield savings account with its competitive rate and freedom to access your funds without penalty.

Learn more about your high-yield savings account options online today.

The bottom line

Stubborn inflation doesn’t have to be fully problematic. There are still ways to take advantage, namely with a high-interest-earning account like a CD. Of course, to earn today’s high CD rates, you’ll need to get started with at least one account, but it may make sense to open two with different expirations. This will allow you to earn today’s high rates while being positioned to earn high rates in the future, as well. And, consider mixing up your funds between a CD and a high-yield savings account, the latter of which can still bring in big returns while still allowing you the same access to your money that a regular savings account does.