Certificates of deposit (CDs) have long been a favored savings tool for those seeking safety and predictability in their investments. These interest-bearing accounts have been even more popular in recent years though as the high-rate environment offered savers an enticing opportunity to earn big interest on the money they deposited. But the economic environment is shifting now that inflation is cooling and the Federal Reserve has slashed its benchmark rate twice in response, which has led CD rates to experience a decline. 

Even with this downward trend, though, CDs continue to offer compelling returns compared to historical averages, particularly when measured against the near-zero rates that characterized much of the previous decade. For perspective, it’s still easy to find CD rates above 4% right now, but savers were fortunate to find CD rates above 1% as recently as 2021, making today’s rates notably attractive even after recent declines. When you factor in the other benefits of investing in a CD, like getting a fixed, locked rate for the entire term, it makes sense to consider investing in CDs as part of your broader investment strategy.

Still, this evolving rate environment presents both challenges and opportunities for strategic savers, leading to some hesitation for those considering locking their funds into one of these accounts. But while the natural instinct might be to shy away from CDs as rates decline, it’s important to understand how far CD rates have actually fallen this year — as well as the enduring benefits of these financial instruments.

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Here’s how far CD rates have dropped this year

To illustrate the change in CD rates that has occurred so far in 2024, let’s look at the average CD rates from January 2 as well as today’s averages (according to Bankrate data).

6-month CD rates

• Average 6-month CD rate on January 2: 5.50%
• Average 6-month CD rate today: 4.85%

Total percentage drop: 11.81%

1-year CD rates

• Average 1-year CD rate on January 2: 5.66%
• Average 1-year CD rate today: 4.50%

Total percentage drop: 20.49%

3-year CD rates

• Average 3-year CD rate on January 2: 4.75%
• Average 3-year CD rate today: 4.20%

Total percentage drop: 11.57%

5-year CD rates

• Average 3-year CD rate on January 2: 4.60%
• Average 3-year CD rate today: 4.35%

Total percentage drop: 5.43%

As illustrated above, the decline in CD rates has varied by term, with 1-year CDs seeing the most significant drop. These shifts can largely be attributed to the broader economic adjustments, such as market responses to Federal Reserve interest rate policies. Lower rates often indicate a cautious market, signaling that economic growth may be slowing or that inflationary pressures are easing, both factors that banks consider when setting CD rates. Still, even with these adjustments, CDs offer some of the most attractive yields for secure savings accounts.

Open a CD and lock in today’s top rates now.

Why you should still open a CD now

CDs are still an excellent option for conservative investors or anyone looking to secure a stable return without market exposure, even at today’s lower rates. Here’s why:

• Guaranteed returns and safety: CDs provide a fixed, guaranteed return on investment, regardless of market fluctuations or future rate cuts. This stability is particularly appealing during uncertain economic times when other investments may present more volatility. For many, this peace of mind alone makes a CD worthwhile, especially when saving for short- to medium-term goals.
• Higher yields compared to savings accounts: Even with this year’s rate drops, CD rates remain higher than most standard savings or money market accounts. For example, a 1-year CD today offers an average rate of 4.50%, while the average savings account rate is currently just 0.45%. This spread can make CDs a better choice for funds you don’t plan to access for the term length, giving your money a chance to grow at a higher rate.
• Predictability for financial planning: With CDs, you know exactly what your return will be at the end of the term. This predictability helps with budgeting and financial planning, making CDs ideal for earmarked funds such as emergency savings, future down payments or anticipated large expenses. 
• Potential tax benefits on longer terms: The potential tax advantages can also help enhance overall returns on longer-term CDs. While CDs are subject to income tax, tax-advantaged accounts like IRAs often allow CDs to grow tax-free until withdrawal. This option can be particularly appealing for long-term savers, as it lets returns accumulate more efficiently, effectively offsetting some of the recent rate drops.

The bottom line

While this year has seen a decline in CD rates across all terms, the value proposition of CDs remains strong, especially for those prioritizing safety, fixed returns and ease of financial planning. Even with the rate reductions, CDs can offer higher yields than regular savings accounts and the security of knowing your investment is FDIC-insured up to the standard limit. As the economic landscape continues to evolve, it’s worth considering the potential for future rate shifts, but locking in a CD today can still provide benefits for savers seeking reliable, stable returns on their cash.

The price of gold is coming down again. Seemingly on a never-ending record-breaking path throughout all of 2024, the price of the precious metal has declined in recent days. After hitting a new high of $2,776.10 per ounce on October 29, the price has since declined by almost 6% to $2,611.53 as of November 12. And that cost could continue to decline as additional economic factors come into consideration.

While a declining asset price, on the surface, may dissuade investors from getting started with gold now, upon closer examination this new price point provides an appealing entry point. But investors, whether veterans or beginners just considering gold now, will need to take a smart and strategic approach to capitalize on this price drop. Below, we’ll break down three ways to take advantage of gold right now.

Start by exploring your top gold investment options here.

How to take advantage of gold’s declining price

Ready to buy into gold now? Here are three possible ways investors can take advantage of gold’s declining price.

Explore your different options

Gold doesn’t just come in the form of bars and coins. There are also gold IRAs, gold ETFs, gold futures and gold stocks. Each has its own set of pros and cons and each will respond differently to a declining price. But you won’t know which offers the best deal right now until you’ve done some preliminary research on all of these types. 

Additionally, some of these require more advanced knowledge of the gold investing landscape than others – and will mandate more work to benefit from a price drop. So start your gold investing journey by exploring all of these types now to better improve your chances of success.

Learn more about gold IRAs online now.

Invest more than you may have planned to

A price point hovering close to $3,000 per ounce may have understandably discouraged an expansive investment. But now, with gold dropping, you have an opportunity to get in at a cheaper price point. This may mean investing more than you may have planned to if you had got started with gold earlier this fall. 

Fractional gold, for example, may have been the only way you could have afforded to add gold to your portfolio previously this year. Now, however, you may be able to invest in a bit more. Just remember to limit your gold to no more than 10% of your overall portfolio to avoid crowding out other, income-producing assets like stocks and bonds. 

Remember what gold can (and can’t) do

A declining gold price could cloud investors’ judgment, particularly after the record run the metal has been on all year. To take advantage of gold now, however, it’s critical to remember what gold can (and can’t) do for your portfolio. It can diversify it and help hedge against inflation – both now and in the future. 

It can’t, however, be relied upon as a steady income producer, notwithstanding this year’s record price surge. And it can’t be the only way you invest, either. Instead, it should be one significant component of a wider, diversified portfolio – even as the price continues to decline.

The bottom line

A falling gold price offers investors a reprieve from a record-price run. To take advantage of this likely momentary price decline, however, gold investors should begin by exploring all of their potential gold options now to better determine which one is right for them. They may also benefit by investing in a larger amount now versus what they may have pursued earlier this year during the price rise and they should always keep in mind what gold can and can’t realistically do for their portfolio. By understanding these three factors now, both beginners and savvy investors can position themselves for long-term gold investing success, even through the inevitable rises and falls in the price. 

With cost-effective borrowing options rare in recent years, one alternative has surfaced as more advantageous for homeowners: accessing their home equity. Whether via a home equity loan or a home equity line of credit (HELOC), both products offer homeowners an effective way to access their accumulated home equity without having to refinance. And, right now, the amount of money that can be tapped into is large, with the average home equity amount hovering close to $330,000 and likely to rise even further as home prices continue to grow. 

So accessing this money with a home equity loan, which comes with a fixed (and lower) interest rate compared to a HELOC, makes sense for many borrowers. The timing, however, needs to be carefully considered. Specifically, is it worth opening a home equity loan now or are borrowers better served by waiting for interest rates to decline further into 2025? That’s what we’ll break down below.

See what home equity loan rate you could qualify for here.

Should you open a home equity loan now or wait until 2025?

There’s a compelling case to be made for opening a home equity loan now versus waiting until the new year. Here’s why:

Interest rates are already lower than many alternatives

If you need money now, then this is likely your best option. That’s because interest rates on home equity loans, averaging around 8.40% right now, are already much lower than some popular alternatives. Average credit card interest rates, for instance, just hit a record, surpassing 23%. 

Personal loans, meanwhile, are much lower at around 13% – but that’s still more than four points higher than home equity loans. And that difference could prove to be worth thousands of dollars when spread out over a 10 or 15-year repayment period. Understanding the drawbacks of the alternatives, then, it makes sense to lock in a home equity loan rate now, before it has a chance to change in 2025.

Get started with a home equity loan online now.

There’s no guarantee that rates will decline much further

The price of gold was on a record rise all of 2024 … until it wasn’t. Mortgage rates had plunged to a 2-year low in September … until rising more than a point in October. As these two recent developments demonstrate, the economy and financial markets are constantly evolving. And while inflation and home equity loan interest rates, specifically, could continue to decline in December and into 2025 there’s no guarantee that they will. 

And as homebuyers recently experienced, they could even rise, perhaps by a prohibitive margin. Monitoring this dynamic, then, many potential home equity borrowers may be better served by locking in a low home equity loan rate now – and refinancing it should rates drop significantly in the future. 

Waiting delays a major tax deduction

While the interest rate you pay on any product is a critical consideration, it may not be quite as important for home equity loans if you use it for IRS-eligible home repairs and improvements. That’s because the interest you pay on these loans is tax-deductible if used for specific home projects. 

Waiting to secure the loan, then, will delay this potentially major tax deduction, leaving homeowners stuck with the interest until they can deduct it from their 2025 return – which they’ll file in 2026. Acting now, however, could potentially reduce your 2024 tax bill, even with just seven weeks left on the calendar. 

Learn more about your home equity loan interest tax deductions here.

The bottom line

For some homeowners, waiting until 2025 to formally apply for a home equity loan makes sense. For others, however, it’s more beneficial to act now. Interest rates on this unique product are already much lower than popular alternatives and there’s no guarantee that rates will fall much further anyway. Plus, by acting now, homeowners can position themselves to potentially benefit from a major interest deduction on their taxes. Still, home equity loans are largely cheaper because the home in question is used as collateral. So borrowers will need to take a strategic approach to this loan type, no matter if they apply now or at a later date in 2025.