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What’s the CD interest rate forecast for November 2024?
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When it comes to earning interest with little risk, certificates of deposit (CDs) tend to be a good option, though they require you to commit to investing for the duration of the CD term to avoid early withdrawal penalties. The upside is that you also lock in your CD rate until the CD matures. When you qualify for a good CD rate, that’s a huge benefit as your investment is FDIC insured, so it’s very low risk, and it provides a generous guaranteed ROI.
In the post-pandemic era, rates soared as the Federal Reserve repeatedly raised the benchmark interest rate in response to record-high inflation. In turn, CD rates climbed to recent record highs, driving increased investor interest.
The Fed has now changed course, though, dropping rates by 50 basis points at the recent September meeting and signaling that further cuts are coming throughout the end of 2024 and into 2025 — with the next one widely expected to happen at the Fed’s November meeting. With rate reductions anticipated, many investors have questions about how CD yields will trend in the coming months.
Find out what today’s top CD rates are now.
What’s the CD interest rate forecast for November 2024?
We’ve talked to some experts about what to expect in November to give you an idea of where things stand.
Short-term CD rates are expected to drop
CD rates have already fallen from their highs in the post-pandemic era, and most experts believe that’s likely to continue into November — especially for certain types of CD products.
“In November, short-term CD rates are likely to continue their downward trend, as the Fed is expected to announce further decreases to their target federal funds rate at the November FOMC meeting,” says Jonathan Ernest, an economics professor at Case Western Reserve University.
Ernest points to the current movement in rates to justify his prediction, explaining that “we saw returns for most CD durations decrease in October as the Fed began a rate-cutting cycle. With markets anticipating another 25-basis point reduction in the federal funds rate in November, spurred on by slower price increases but tempered by a still reasonably tight job market, returns on investments in CDs will likely decrease as well.”
Chad Gammon, CFP and owner of Custom Fit Financial agrees, pointing to the same reason for a projected decline.
“For November, CD rates are forecasted to continue a downward trend. This lowering of rates would occur with the Federal Reserve’s rate cut and lowering inflation,” Gammon says.
Compare the best CD accounts available to you here.
Rates could move higher
Although there’s clearly reason to believe rates will drop in November and beyond, there’s no uniform consensus on this issue — especially for longer-term CDs.
“If recent market events — especially those pertaining to interest rates — have taught us anything, it’s that forecasting rates is a very difficult thing to do,” says Jeff DeLarme, CFA, CFP and president of DeLarme Wealth Management, Inc. “I wouldn’t be surprised if rates on short-term CDs moved lower in the month ahead, but I’m also not convinced they couldn’t move higher.”
Rate trends may also diverge for long- and short-term CDs, especially considering that the Fed rate cuts don’t have a uniform impact on these two related products and other factors may play a bigger role in driving the yields that long-term CDs offer.
“In my opinion, the longer the CD, the more rates are likely to be driven by supply and demand and other economic factors,” DeLarme says.
“For long-term holdings, the effect is a little less clear. We saw rates for 30-year mortgages begin to fall, but then creep back up, even after the Fed’s rate-cutting in October. Similar uncertainty may seep into the market for long-term CDs, as these returns are not as tightly correlated to changes in the federal funds rate as are short-term CDs,” Ernest says.
This uncertainty may frustrate CD investors who’ve enjoyed a long run of record-high rates. However, for those displeased by the current trends, there’s a simple solution.
“If you’re looking at purchasing a CD, locking in higher rates now is an option. Or, using a CD ladder to spread maturity dates would help with the impact of any future declines,” Gammon says.
The bottom line
The reality is that CDs remain a safe option with rates still high by historical standards. This advice is worth considering in an uncertain market. Investors can find options by checking out the best long-term CDs to open before the next rate cut so they can lock in at today’s rates and worry less about fluctuations during a time of economic uncertainty.
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Gold has had an impressive year so far, outperforming many other assets over the last several months. Throughout 2024, the price of gold has consistently broken records and reached new all-time highs, fueled in large part by economic uncertainty, global instability and investor interest, underscoring its allure as a reliable investment in turbulent times. On the eve of the U.S. presidential election, the price per ounce was sitting at $2,748, just shy of its recent peak — and up by over 33% year-to-date.
However, shortly after the election, gold’s price began to fall, dipping by about $80 to around $2,669 per ounce. This post-election plunge, which marked a three-week low, caught many investors by surprise and sparked speculation about what lies ahead for gold’s price. While some investors might be wary of the price drop, viewing it as a sign of instability, others see it as a potential entry point.
This price drop raises an intriguing question: Is now the right time to buy into gold? Given its strong upward trajectory this year, today’s lower price may offer a strategic entry point, but there are many factors to consider. Below, we’ll break down what to consider.
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Should you buy gold as the price plunges?
The short answer is yes — now could be an excellent time to add gold to your portfolio. After all, gold has historically shown resilience and an ability to grow in value over time, especially during periods of economic uncertainty. Analysts predict that demand will keep pushing prices higher, with some expecting it to reach $3,000 per ounce in the coming months. This makes today’s prices an attractive buying opportunity for both beginners and those looking to expand their gold holdings.
Beyond potential price growth, gold serves as a unique asset in a well-balanced portfolio. Gold is known for its diversification benefits, offering protection against downturns in other markets. For example, during economic crises or inflationary periods, gold often outperforms stocks and bonds. This characteristic makes it valuable in today’s environment, where lingering inflation fears, potential interest rate adjustments and global tensions have caused volatility across multiple asset classes.
Investing in gold now can serve as an inflation hedge for the future as well. While the inflation rate is currently sitting near the Fed’s 2% target rate, there’s always a chance that inflation could tick back up unexpectedly. If that happens, the cost of goods and services increases and the purchasing power of cash diminishes, but gold tends to retain its value. This hedging ability has made gold particularly appealing in recent years. So, if you’re concerned about protecting your assets from future issues with inflation, adding gold could be a strategic move.
Central banks are also bolstering their gold reserves, which could help drive demand and further stabilize prices. Central banks have been consistent buyers of gold, both as a hedge and as a way to diversify their own reserves. Additionally, the industrial sector’s need for gold — particularly in electronics and medical devices — has remained robust, adding further demand. All these factors point to a positive long-term outlook for gold, making now a favorable time to invest, especially at a lower price.
Find out what your gold investing options are here.
What gold assets make sense right now?
If you’ve decided to invest in gold, the next question to answer is: What type of gold asset makes the most sense? Here’s what you may want to consider investing in now:
- Physical gold: Gold bullion bars and coins offer a direct way to own gold without needing to rely on the market fluctuations of other investment vehicles. Bullion provides a sense of security, as it’s an actual item you can hold. However, storing and insuring physical gold can add to your costs.
- Gold ETFs: For more flexibility and convenience, gold exchange-traded funds (ETFs) are a popular option. Gold ETFs allow investors to buy shares that represent ownership in a quantity of gold without the need to manage or store physical gold. They also provide liquidity and generally come with lower costs than physical gold.
- Gold mining stocks: Investing in gold mining companies offers exposure to gold’s price performance without directly buying the metal. When the price of gold rises, mining companies typically see increased profits, which can lead to higher stock prices. However, gold mining stocks can also be volatile, as they are affected by factors such as production costs.
The bottom line
Ultimately, the decision to buy gold should align with your financial goals, risk tolerance and investment strategy, but the recent dip in gold’s price presents a unique opportunity for investors. Given its impressive performance this year and its strong long-term outlook, now could be a strategic time to buy in at a lower price point. Whether you choose physical gold, gold ETFs or gold mining stocks, each type of gold asset offers unique advantages that can enhance your portfolio. And, with its ability to hedge against inflation, provide diversification and serve as a safe haven in times of uncertainty, gold remains a wise choice for many investors.
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