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Is it too late to open a CD? Here are three reasons why it may not be
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After years of abnormally low interest rates thanks to the pandemic, the rate climate changed in 2022. With inflation at its worst point in decades interest rate hikes became routine, hitting a 23-year high last summer. The benchmark interest rate range between 5.25% and 5.50% hasn’t changed since then and most don’t expect it to be adjusted when the Federal Reserve meets again on March 19.
While higher rates have been problematic for borrowers they’ve been a boost for savers, resulting in surging returns on high-yield savings and certificates of deposit (CD) accounts. The latter account type has rates as high as 7% right now for select savers. But with interest rate cuts expected for later this year, many may be wondering if it’s too late to open a CD. Below, we’ll break down three reasons why it may not be.
See how much more you could be earning with a top CD account here now.
Is it too late to open a CD?
While you may have missed out on substantial returns over the last 12 to 18 months, it’s not too late to open a CD now. Here’s why:
Rates are still high
Rates on CDs are still very high, with many over 5.50% right now. Others are closer to 6%, depending on the term you choose and if you use an online bank. That’s a significant amount of money to be made simply by moving some of your funds into one of today’s top CD accounts. A CD with an interest rate of 5% could result in hundreds of dollars earned over just one year.
And that’s just for a short-term CD with a 5% rate. You may be able to find longer terms with better returns simply by shopping online, so don’t delay.
Get started with a top CD account here now.
Rates aren’t expected to drop dramatically
While many experts aren’t expecting the Fed to reduce interest rates in March, a rate cut (possibly multiple ones) is being predicted for 2024, possibly as soon as May or June. And while the Fed won’t directly dictate what lenders offer CD account holders, the returns savers can get will drop when the benchmark rate does.
That all being said, rates aren’t expected to drop dramatically. Instead, they’ll fall in small increments (think a quarter of a percentage point). And it will take many months, if not years, for that to happen. Plus, if you lock in a long-term CD rate now you’ll be set to earn that rate even if the larger rate climate drops before your CD matures.
You may be losing money
Take a look at the interest rate you’re currently earning with a regular savings account. According to the FDIC, the average return for these types of accounts is just 0.46%, which isn’t even keeping pace with inflation.
When compared to CDs, then, it becomes clear that you’re losing money. Though it may not be feasible — or even recommended — to move all of your money into a locked CD, it does make sense to stem some of the interest losses incurred with a regular savings account with a top CD instead.
Learn more about your CD options here now.
The bottom line
While savers may have missed out on big CD returns over the last 12 months, they can make up for it with a top CD now. Rates are still elevated and they’re not expected to drop dramatically even when the Fed does make its first rate cut. And compared to the minimal earnings the average savings account comes with, it becomes even clearer that the window of opportunity to earn high CD rates hasn’t closed quite yet.
CBS News
Kamala Harris will speak with “60 Minutes” tomorrow. Here’s what to know for the interview.
Voters will get the chance to hear from Vice President Kamala Harris on Monday as she presents her case for why she should be president in a “60 Minutes” election special.
For decades, “60 Minutes” has featured both Republican and Democratic nominees for presidents, but this year, former President Donald Trump backed out after previously indicating he would be on the show. Correspondent Scott Pelley, who’d been set to interview Trump, will instead travel to Arizona’s Maricopa County, home to more than 60% of Arizona’s voters and a critical battleground in a key swing state.
One thing is certain about the election; with the U.S. deeply involved in both the wars in Ukraine and the Middle East, whoever wins on Nov. 5 will become a wartime president.
What Harris will discuss
Israel’s war started one year ago after Hamas launched a surprise terror attack and correspondent Bill Whitaker will discuss the ongoing war with Harris.
Harris will also discuss the economy, immigration, her record as vice president and the differences between herself and Trump.
Democratic vice presidential candidate Gov. Tim Walz will also appear.
Whitaker joined the Democratic ticket on the campaign trail this week to gain insight into their platform’s priorities and values, and what the candidates believe voters should know.
Why Trump pulled out of the “60 Minutes” interview
Leading up to the candidate hour, Trump, through campaign spokespeople, was the first candidate to accept the “60 Minutes” request to be interviewed for the special, according to CBS News. It had been agreed that both candidates would receive equal time during the broadcast.
Trump last sat down with 60 Minutes in 2020. He walked out during the interview with Lesley Stahl. Trump referenced the incident on Tuesday night at a Milwaukee press conference when asked about his decision not to participate in the Oct. 7 “60 Minutes” election special.
“Well, right now, I went to – they came to me and would like me to do an interview, but first I want to get an apology, because the last time I did an interview with them, if you remember, they challenged me on the computer,” Trump said. “They said the ‘laptop from hell’ was from Russia, and I said it wasn’t from Russia. It was from Hunter, and I never got an apology, so I’m sort of waiting. I’d love to do ’60 Minutes.’ I do everything.”
The Republican nominee for president emphasized that he felt he was owed an apology from “60 Minutes.”
“Let’s see if they do it. I wouldn’t mind doing 60,” Trump continued. “I’ve done ’60 Minutes’ a lot.”
In a statement on Tuesday, Trump campaign communications director Steven Cheung said that Trump’s team had not agreed to an interview.
“Fake News,” Cheung said in a post on X. “60 Minutes begged for an interview, even after they were caught lying about Hunter Biden’s laptop back in 2020. There were initial discussions, but nothing was ever scheduled or locked in. They also insisted on doing live fact checking, which is unprecedented.”
Previous Trump, Harris appearances on 60 Minutes
Trump previously sat down with “60 Minutes'” Mike Wallace in 1985, Pelley in 2015 and Lesley Stahl twice in 2016, first in July of that year and then again in November of 2016. He also spoke with Stahl again in 2018 and 2020.
Harris previously sat down with Whitaker last year. She also was interviewed by Norah O’Donnell, “CBS Evening News” anchor and “60 Minutes” contributing correspondent, in 2020.
How to watch the “60 Minutes” election special
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