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CD account interest forecast for spring 2024: Here’s what experts predict
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Inflation and elevated interest rates continue to weigh on the U.S. economy. The Consumer Price Index reports inflation increased 3.2% year-over-year in February, a slight increase from the 3.1% bump in January.
Consequently, the Federal Reserve, which in December suggested three interest rate cuts in 2024, paused rates for the sixth time in the last seven meetings. Many economists now anticipate a delay in rate cuts until later in the year or when there is evidence that inflation is moving toward the Fed’s 2% target rate.
While the delay in interest rate cuts is bad news for borrowers, it could benefit savers. Interest rates on deposit accounts like high-yield savings accounts and certificates of deposit (CD) have soared in this high-rate environment. Many of the best CD accounts have interest rates of 5% or greater.
So what impact will rising inflation and stagnant interest rates have on CD account rates this spring?
Find out the top CD rates you could earn right now.
CD account interest forecast for spring 2024: Here’s what experts predict
We consulted several financial experts to get their take on the possible scenarios that could play out this spring. Here is what they said:
CD account interest rates will rise further
At last week’s Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell reiterated the committee still aims to reduce interest rates three times in 2024. This development, along with the Fed’s decision to leave the interest rate unchanged for now run counter to the idea that CD rates could rise.
“It is unlikely that CD rates will continue to rise in the immediate future. Typically, when the Fed halts its interest rate hikes, banks have less incentive to raise the rates they offer on deposit accounts, including CDs. This is because the cost of borrowing money does not increase further, reducing the need for banks to attract additional deposits with higher rates,” says Brian Seymour, CEO and founder of Prosperitage Wealth.
Explore your best CD rate options online now.
CD account interest rates will stay the same
Some financial experts, such as Osman Ulhaq, chief strategy and growth officer at OneAZ Credit Union, anticipate CD rates will remain steady, at least as long as the federal funds rate does the same.
“Our prediction is that share certificate or CD rates will remain steady in the short term and then decline towards the end of the year,” says Ulhaq. “Though inflation rates are rising, and it is often thought that rates mirror inflation, that is not always the case. The Fed decided in its March meeting to keep interest rates the same, but we’re still predicting that over the next year, the Fed will lower rates, which will cause us to see a decline in share certificate rates.”
CD account interest rates will drop
Economists and rate-watchers widely agree that interest rates will likely drop in 2024 if the Fed follows through on its goal of cutting interest rates multiple times during the year.
“CD rates will most likely drop and drop substantially in 2024,” says Robert Johnson, professor of finance at Heider College of Business at Creighton University. “The biggest reason is the likelihood of Federal Reserve rate cuts later this year.”
Johnson points to CME Group’s FedWatch Tool, which predicts Federal Reserve interest rate decisions based on the future contract prices of the fed funds. “Today, according to the CME’s FedWatch Tool, the consensus of market participants is that in December of 2024, the target Fed funds rate will be a full 75 basis points lower than today. This will translate into lower CD rates. My advice to CD investors would be to lock in higher rates today and to not anticipate higher rates in the near future.”
The bottom line
CD interest rates are currently high, with some online banks offering CD rates from 5.50% to 5.75%. Still, it’s essential to only deposit an amount you don’t anticipate needing before your CD term’s maturity date. “When deciding if a CD is right for you and your saving goals, it’s important to consider foreseeable expenses and when you may need those funds,” says Steve Goodman, managing director and head of product and consumer banking at Chase. “With a CD, the money typically isn’t immediately accessible without penalty if you need to access it early.”
So, consider choosing a CD term that aligns with a specific savings goal. For example, if you plan on putting a down payment on a home in three years, a 36-month CD might be a suitable term to park your money and earn a higher yield until you need the funds.
Some residents east of Atlanta were evacuated while others were told to shelter in place to avoid contact with a chemical plume after a fire at a chemical plant.
Rockdale County Fire Chief Marian McDaniel told reporters that a sprinkler head malfunctioned around 5 a.m. Sunday at the BioLab plant in Conyers. That caused water to mix with a water-reactive chemical, which produced a plume of chemicals. The chief said she wasn’t sure what chemicals were included.
A small roof fire was initially contained, but reignited Sunday afternoon, Sheriff Eric Levett said in a video posted on Facebook as gray smoke billowed into the sky behind him. He said authorities were trying to get the fire under control and urged people to stay away from the area.
People in the northern part of Rockdale County were ordered to evacuate and others were told to shelter in place with windows and doors closed. Sheriff’s office spokesperson Christine Nesbitt did not know the number of people evacuated.
The federal Environmental Protection Agency and the Georgia Environmental Protection Division were both on site, county Emergency Management Director Sharon Webb said. The agencies are monitoring the air “to give us more of an idea of what the plume consists of.”
McDaniel said crews were working on removing the chemical from the building, away from the water source. Once the product is contained, the situation will be assessed and officials will let residents know whether it is safe to return to their homes, she said.
An evacuation center was opened at Wolverine Gym in Covington.
Washington — Sen. JD Vance and Minnesota Gov. Tim Walz will face off on Tuesday in the first and only vice presidential debate of the cycle, as the two candidates look to prop up the Republican and Democratic tickets with fewer than 40 days until Election Day.
The debate, hosted by CBS News at the CBS Broadcast Center in New York City, will be moderated by “CBS Evening News” anchor and managing editor Norah O’Donnell and “Face the Nation” moderator and CBS News chief foreign affairs correspondent Margaret Brennan.
Here’s what to know about how the candidates are preparing for the debate:
How JD Vance is preparing for the VP debate
The Ohio Republican has been preparing for the debate for more than a month, a source directly involved told CBS News, including with “murder board” sessions with a small team that includes Vance’s wife and his advisers, along with senior Trump adviser Jason Miller.
Among Vance’s main focuses during the preparation has been studying Walz’ debate style and policy record, the source said, noting that Vance will attempt to highlight what he sees as the Minnesota governor’s left-wing views during the debate.
Vance told reporters last week that his plan is to break down what the Trump-Vance administration would do to make “life better” and connect that to policy.
“So, we’re studying up as much as we can on the issues that matter to the American people, and I’m looking forward to it,” Vance said.
House Majority Whip Tom Emmer, a Minnesota Republican, is standing in for Walz during Vance’s debate prep, four sources familiar with the preparations told CBS News. Emmer and Walz have deep roots in Minnesota and are close in age.
Emmer told ABC’s “This Week” on Sunday that he’s known Walz for decades and has spent the last month working to “get his phrases down, his mannerisms.”
“My job was to be able to play Tim Walz so JD Vance knows what he’s going to see,” Emmer said.
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How Tim Walz is preparing for the VP debate
Walz has been preparing for the debate with a close team of advisers, a source familiar with the preparations told CBS News. Some of the people involved also helped Vice President Kamala Harris take on former President Donald Trump, among others, like a long-time aid to Walz who worked with him during his bids for governor.
For Walz, whose name recognition was until recently limited outside of Minnesota, the focus is on continuing to introduce himself to the American people, according to the source. He’ll also work to highlight Harris’ vision for the nation’s path forward.
“You’ll hear me talk like I have about things that impact Americans, making sure they have the opportunity to thrive, making sure that we’re being factual in how we talk about that,” Walz told MSNBC’s Rachel Maddow of the debate earlier this month. “And so I’m looking forward to it. I’ll work hard, that’s what I do.”
During debate prep, Transportation Secretary Pete Buttigieg is standing in for Vance, a campaign official familiar with the preparation told CBS News. The former mayor of South Bend, Indiana, also assisted Harris during her debate prep in 2020, and is close in age to Vance.
When and how to watch the presidential debate
Debate coverage on CBS News 24/7 begins at 4 p.m. ET, with the debate getting underway at 9 p.m. ET on Oct. 1.
The 90-minute debate will be streamed on CBS News 24/7 and Paramount+ across all available platforms and CBSNews.com. The debate will also be simulcast across other broadcast and cable networks.
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Actor John Ashton, best known for his role as the by-the-book detective in the “Beverly Hills Cop” franchise, has died, his publicist Alan Somers confirmed to CBS News on Sunday. He was 79.
Ashton died Thursday in Ft. Collins, Colorado, after a battle with cancer.
“John was a loving husband, brother, father, and grandfather who will be deeply missed by all who knew him,” a statement said.
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Ashton was born in Springfield, Massachusetts on Feb. 22, 1948, and raised in Enfield, Connecticut. He received a Bachelor of Arts from the University of Southern California.
Throughout his 50-year career in show business, Ashton appeared in nearly 100 movies after making his debut in 1973’s “The Psychopath.”
He was probably best known for his role as Det. Sgt. John Taggart in the first two installments of the “Beverly Hills Cop” series alongside Eddie Murphy and Judge Reinhold. He reprised his role in 2024’s “Beverly Hills Cop: Axel F.”
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Other film credits include “Some Kind of Wonderful,” “She’s Having a Baby,” “Midnight Run,” “Little Big League” and “Gone Baby Gone.”
On television, he played Willie Joe Garr on several episodes of “Dallas” and made an appearance on such shows like “Columbo,” “Police Squad!” “Hardball” and others.
“John devoted his career to honing his craft and bringing characters to life on the screen. His presence will be greatly missed,” Somers said.
Ashton is survived by his wife Robin Hoye, three children, three step-children and a grandson. He also leaves behind two sisters and a brother.
“John leaves behind a legacy of love, dedication, and service. His memory will forever be treasured by his wife, children, grandchildren, as well as his brother, sisters, his extended family and all who loved him,” Somers said. “John’s impact on the world will be remembered and celebrated for generations to come.”
The family requests any donations in Ashton’s memory be made to Pathways Hospice Care
Residents in Georgia ordered to evacuate or shelter in place after fire at chemical plant
Israeli airstrikes kill dozens across Lebanon as Hezbollah confirms a 7th top commander was killed
Residents told to evacuate or take shelter after Georgia chemical plant fire