When it comes to the right financial product or service, timing is everything. And, for much of the last two years, the timing was right to open a certificate of deposit (CD) account. Whether you chose a short-term CD or a long-term CD and opted to deposit $500 or $5,000, you were able to earn a return exponentially higher than you could have just a few years earlier thanks to inflation and higher interest rates. 

But the timing surrounding a CD account opening is changing again — and savers would be well-served by making some smart moves now while they still can. 

For those who don’t yet have a CD account as well as those who still want to capitalize on today’s high rates, it makes sense to open a CD now, in the weeks before the Federal Reserve’s scheduled November meeting. Below, we’ll explain why.

See how much more you could be earning on your money with a top CD here.

Why you should open a CD before the November Fed meeting

Not sure if now is the right time to open a CD? Then consider these three factors:

Interest rates are still high

Despite the Federal Reserve’s September interest rate cut of half a percentage point, interest rates on CDs are still high at the moment, with many lenders offering rates in the 4% to 5% range. In other words, the interest rate climate has only recently started to cool and not so dramatically as to render CD rates unworthy. 

That said, today’s rates are unlikely to stay this elevated for much longer, and many may wind up looking back on October 2024 as the last time they could’ve secured a high rate during this particular economic cycle. So don’t wait for that to happen.

Get started with a high rate CD here now.

Rates could fall in anticipation of a cut

A formal rate cut will ensure that lenders lower rates on their products, both for savers and for borrowers. But that cut doesn’t need to be official for lenders to preemptively get ahead of any reductions. Rates could fall in anticipation of a cut, as they did in September for mortgage rates, before the Fed took formal action. This same dynamic could play out with CDs in the final weeks of October. Start shopping around for rates and lenders now, then, before this theoretical scenario becomes a reality. 

Multiple rate cuts now look likely

It’s been difficult to predict rate cuts this year, as many started 2024 expecting them to be issued in the spring or maybe in June. But with the first formal cut finally being issued on September 18 — the first in four years — the economy has had a chance to react. And while cuts in November and December now look likely to be just 25 basis points, that will add up to a full point reduction from where the federal funds rate was on September 1. That will reduce what you can earn on a CD if you wait to act past November. So, if you know how much you can comfortably deposit without risking an early withdrawal penalty, it makes sense to take action now, while high rate CDs are still easy to find.

The bottom line

While you could’ve opened a high-earning CD in much of 2022 and 2023, the window of opportunity hasn’t fully closed just yet. By acting now, savers can still lock in a rate between 4% and 5% — and they can do both before the Fed issues an additional rate cut in November and before lenders start pricing in that reduction into their offers. Just be sure to shop around to find a lender offering the best rates and terms and consider using an online bank, as they can generally (but not always) offer a more attractive return than banks with physical branches.