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4 things to know about CD rates right now
Borrowers hoping for some imminent relief were disappointed this week after the latest report from the Bureau of Labor Statistics showed inflation higher than expected in January. While that 3.1% rate was lower than December’s 3.4%, it’s still holding steady and significantly higher than the Federal Reserve’s target 2% goal. Higher inflation means elevated interest rates and, with inflation inconsistent, rates will stay put, meaning continued pain for those looking for mortgages, credit cards and other credit products.
However, there has been one major benefit of today’s rate climate: higher rates on savings accounts. For much of the last year, it’s been a great time to open a certificate of deposit (CD) account. That said, to get the most from one of these accounts now, it behooves savers to understand some key components of today’s CD rate environment. Below, we’ll detail four of these considerations.
Ready to get started? See how much more you could earn with a top CD here now.
4 things to know about CD rates today
Here are four important things about today’s unique CD rate climate.
Rates are high
CD rates today are high. How high, exactly, will depend on the amount you deposit, the term of your account and the lender you choose. But it’s not difficult to find a CD with a rate of 6% or higher right now. Some savers may even qualify for an account with a 7% interest rate.
That’s a significant amount of interest that can be earned simply by transferring funds from one account type to another — resulting in hundreds of extra dollars earned each year. Compared to the minimal 0.47% that can be obtained with a regular savings account, it’s clear that you’re losing money by not moving some of your funds into a top CD now.
Get started with a high interest-earning CD account online here.
Rates will stay elevated a bit longer
The forecast for CD rates toward the end of 2023 was unclear, with many hoping for a cut to the benchmark interest rate as soon as March. And while that cut may still come this year, it’s unlikely to be next month after this week’s disappointing inflation report.
As a result, rates on CDs will likely stay elevated a bit longer. This gives savers more time to explore their options, ideally locating a CD with the best mix of rates and minimal (or no fees). But remember that the longer you wait, the more time will pass without earning today’s high CD rates, so it’s smart to move relatively quickly.
Short-term CD rates are a bit better than long-term ones
In a reversal from historic trends, the best CD rates right now are being offered on short-term CDs (12 months or less) versus long-term ones. While long-term CDs generally reward savers with more money in exchange for locking their money away for an extended period, that’s not the case right now.
The volatile rate environment has instead left short-term CDs with elevated rates and long-term CDs with rates slightly lower. While both are high compared to recent years, the very best CD rates right now will generally be found with short-term accounts so keep that in mind as you hunt for the best account.
The long-term forecast is unclear
As mentioned, there was much discussion about the future of CD rates toward the end of last year as inflation finally seemed under control and rate cuts looked imminent. But that forecast is murkier now following two consecutive disappointing inflation reports.
And while the Fed hasn’t increased rates since last July, they haven’t cut them either. This is good news for CD account holders who can still earn a nice return right now — and are unlikely to see a dramatic rate cut affect their earnings long-term either.
Learn more about today’s CD options here.
The bottom line
in today’s unique rate environment, savers need to be a bit more diligent about where they store their money. CDs are one great option, thanks to significantly higher rates. And those rates are expected to stay high for at least a few more months. But rates on short-term CDs are generally better than long-term ones right now, something savers should keep in mind as they search for the best account. They should also know that the long-term CD rate forecast is unclear, meaning that now could be an opportune time to take advantage and start earning more interest.
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Sen. Tammy Duckworth says Pete Hegseth is “flat-out wrong” about women in combat roles
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Sen. Duckworth says Trump defense secretary pick is “flat-out wrong” about women in combat roles
Democratic Sen. Tammy Duckworth said Sunday that Pete Hegseth, President-elect Donald Trump’s pick for defense secretary is “flat-out wrong” in his view that women should not serve in the military in combat roles.
“Our military could not go to war without the women who wear this uniform,” Duckworth said on “Face the Nation with Margaret Brennan.” “And frankly, America’s daughters are just as capable of defending liberty and freedom as her sons.”
Trump tapped Hegseth, a former Fox News host and Army veteran who served in Iraq and Afghanistan as his pick to head the Defense Department earlier this month. The 44-year-old has drawn criticism for his stance on women in combat roles, along with his level of experience.
Duckworth, who in 2004 deployed to Iraq as a Blackhawk helicopter pilot and sustained severe injuries when her helicopter was hit by an RPG, outlined that women who serve in combat roles have met the same standards as men, passing rigorous testing. She said Hegseth’s position “just shows his lack of understanding of where our military is,” while arguing that he’s “inordinately unqualified for the position.”
“Our military could not go to war without the 220,000-plus women who serve in uniform,” Duckworth said. She added that having women in the military “does make us more effective, does make us more lethal.”
Hegseth has also drawn scrutiny amid recently unearthed details about an investigation into an alleged sexual assault in 2017. Hegseth denies the allegation and characterized the incident as a consensual encounter. The Monterey County district attorney’s office declined to file charges as none were “supported by proof beyond a reasonable doubt.” His lawyer has acknowledged that Hegseth paid a confidential financial settlement to the woman out of concern that the allegation would jeopardize his employment.
Duckworth, an Illinois Democrat who serves on the Armed Services and Foreign Relations Committees, said it’s “really troubling” that Trump would nominate someone who “has admitted that he’s paid off a victim who has claimed rape allegations against him.”
“This is not the kind of person you want to lead the Department of Defense,” she added.
The comments come after Trump announced a slew of picks for top posts in his administration in recent days. Meanwhile, one pick — former Rep. Matt Gaetz for attorney general — has already withdrawn his name from consideration after he faced intense scrutiny amid a House Ethics Committee investigation and a tenuous path to Senate confirmation.
While Duckworth acknowledged that she’s glad her Senate Republicans “held the line” on Gaetz and also elected Sen. John Thune as leader over a candidate favored by many in Trump’s orbit, she said she’s “deeply concerned” her Republican colleagues will green light Trump’s nominees.
“From what I’m hearing from my Republican colleagues on everything from defense secretary to other posts, it sounds like they are ready to roll over for Mr. Trump,” Duckworth said.
But Duckworth didn’t rule out supporting some of the nominees herself during the Senate confirmation process, pledged to evaluate each candidate based on their ability to do the job, and their willingness to put the needs of the American people before “a retribution campaign for Mr. Trump.”
Meanwhile, a CBS News poll released on Sunday found that 33% of Americans say Hegseth is a “good choice” for defense secretary, including 64% of Trump voters. But 39% of Americans said they hadn’t heard enough yet about the pick. More broadly, Americans generally say they want Trump to appoint people who’ll speak their minds and who have experience in the field or agency they’ll run.
Sen. Rand Paul, a Kentucky Republican who also appeared on “Face the Nation” on Sunday, said he believes that Hegseth can run the massive Defense Department, despite his lack of experience managing a large organization. Though he did not address Hegseth’s comments about women in combat roles, Paul said he believes the “vast majority of people” support leaders who are picked based on merit, citing Hegseth’s criticism of the Pentagon for what he says has been a move away from merit-based hiring and toward hiring based on “racial characteristics.”
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Israeli strike kills Lebanese soldier as Hezbollah fires at least 185 rockets at Israel
Hezbollah fired at least 185 rockets and other projectiles into Israel on Sunday, wounding seven people in the militant group’s heaviest barrage in several days, in response to deadly Israeli strikes in Beirut while negotiators pressed on with cease-fire efforts to halt the war.
Meanwhile, an Israeli strike on a Lebanese army center killed one soldier and wounded 18 others on the southwestern coastal road between Tyre and Naqoura, Lebanon’s military said. Israel’s military expressed regret and said the strike occurred in an area of combat against Hezbollah, adding that its operations are directed solely against the militants. The strike was under review.
Israeli strikes have killed over 40 Lebanese troops since the start of the war between Israel and Hezbollah, even as Lebanon’s military has largely kept to the sidelines.
Lebanon’s caretaker prime minister, Najib Mikati, condemned it as an assault on U.S.-led cease-fire efforts, calling it a “direct, bloody message rejecting all efforts and ongoing contacts” to end the war.
“(Israel is) again writing in Lebanese blood a brazen rejection of the solution that is being discussed,” a statement from his office read.
The strike occurred in southwestern Lebanon on the coastal road between Tyre and Naqoura, where there has been heavy fighting between Israel and Hezbollah.
Hezbollah began firing rockets, missiles and drones into Israel after Hamas’ Oct. 7, 2023, attack out of the Gaza Strip ignited the war there. Hezbollah has portrayed the attacks as an act of solidarity with the Palestinians and Hamas. Iran supports both armed groups.
Israel has launched retaliatory airstrikes since the rocket fire began, and in September the low-level conflict erupted into all-out war, as Israel launched waves of airstrikes across large parts of Lebanon and killed Hezbollah’s top leader, Hassan Nasrallah, and several of his top commanders.
Hezbollah fired a total of around 160 rockets and other projectiles into Israel on Sunday, some of which were intercepted, the Israeli military said.
Israel’s Magen David Adom rescue service said it was treating two people in the central city of Petah Tikva, a 23-year-old man who was lightly wounded by a blast and a 70-year-old woman suffering from smoke inhalation from a car that caught fire. The first responders said they treated three other people in northern Israel, closer to the border, including a 60-year-old man in serious condition.
It was unclear whether the injuries and damage were caused by the rockets or interceptors.
Israeli airstrikes early Saturday pounded central Beirut, killing at least 20 people and wounding 66, according to Lebanon’s Health Ministry.
Israeli attacks have killed more than 3,500 people in Lebanon, according to Lebanon’s Health Ministry. The fighting has displaced about 1.2 million people, or a quarter of Lebanon’s population.
On the Israeli side, about 90 soldiers and nearly 50 civilians have been killed by bombardments in northern Israel and in battle following Israel’s ground invasion in early October. Around 60,000 Israelis have been displaced from the country’s north.
The Biden administration has spent months trying to broker a cease-fire, and U.S. envoy Amos Hochstein was back in the region last week.
The European Union’s top diplomat called for more pressure on both Israel and Hezbollah to reach a deal, saying one was “pending with a final agreement from the Israeli government.”
Josep Borrell spoke Sunday after meeting with Mikati and Lebanese Parliament Speaker Nabih Berri, a Hezbollah ally who has been mediating with the group.
Borrell said the EU is ready to allocate 200 million euros ($208m) to assist the Lebanese military, which would deploy additional forces to the south.
The emerging agreement would pave the way for the withdrawal of Hezbollah militants and Israeli troops from southern Lebanon below the Litani River in accordance with the U.N. Security Council resolution that ended the 2006 war. Lebanese troops would patrol the area, with the presence of U.N. peacekeepers.
Lebanon’s army reflects the religious diversity of the country and is respected as a national institution, but it does not have the military capability to impose its will on Hezbollah or resist Israel’s invasion.