Expectations that the Federal Reserve would cut its benchmark interest rate yet again became a reality on Wednesday when the Fed did just that, issuing a 25 basis point reduction. That brings the federal funds rate to a range between 4.25% and 4.50%. The move was the third such reduction made by the Fed this year and has brought the rate down a combined full percentage point from where it was in early September. But it came after two recent inflation readings showed that rate increasing, so the forecast for additional rate reductions in 2025 is now unclear.

Against this backdrop, savers who were able to capitalize on an elevated rate climate via certificate of deposit (CD) accounts may be pondering their next move. Whether they have a current account approaching maturity or are considering a new one, it helps to know which type to open in today’s evolving rate climate. Below, we’ll break down what to consider (and what to avoid) now that the Fed’s cut rates yet again.

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Which CD account should you open now that the Fed’s cut rates again?

The decision surrounding which CD account to open right now is a personal one, depending on your financial circumstances and your ability to keep your money untouched for the full CD term (or length). That noted, on the surface, it may be tempting to open a short-term CD now. A 3-month CD or a 6-month CD, for example, has a rate of 4.50% now. 2-year CDs, meanwhile, have rates of 4.25% while 3-year and 5-year CDs have the same. So if your goal is to earn the highest rate, a short-term CD account can accomplish that goal. But if you’re looking to earn as much interest as possible – which most savers are – a long-term account is the better option.

Let’s use $10,000 as an example. That amount deposited in a 6-month CD now will result in $222.52 earned upon maturity. But that same amount in a 2-year CD would leave you with $868.06 earned and $2,313.47 in a 5-year account. And that wide discrepancy in returns isn’t the only reason to open a long-term CD now.

With three Fed rate cuts already issued in 2024 and others likely for 2025, returns on all CD accounts, no matter the term, will continue to decline. But that won’t be a concern with a long-term CD since interest rates on CDs are fixed – the rate you open the account with will remain the same one your account matures with. Not only will this allow for predictable returns but it will allow your money to grow undisturbed, regardless of any Fed rate activity during that period. And considering that CD rates were barely above 1% in 2020 or 2021, locking in today’s still attractive rates for the long term can be beneficial for a wide swath of savers.

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What about high-yield savings accounts?

In recent years, high-yield savings accounts, which had rates comparable to the top CDs, were considered a good alternative. These accounts operate like traditional savings accounts do but at much higher interest rates. And while they’re still relatively high, the rates on these accounts are variable and liable to change as the interest rate climate evolves. That means additional reductions in line with the Fed’s actions, even if they don’t fall by the same proportion. So, if you want to maintain access to your funds, which CDs won’t allow, then a high-yield savings account could still be worth exploring. But if you’re able to leave your money in a CD for the long term, that’s arguably the better way to both protect and grow your savings.

The bottom line

Action taken by the Fed will require both borrowers and savers to be nimble in their approach. For many, this could mean moving a portion of their funds into a long-term CD account to both exploit today’s high rates – and maintain them in the face of additional rate cuts to come. Others, however, may be better served by using a high-yield savings account instead. No matter your situation, however, it’s important to have at least some money in a high-earning account now. With rate changes inevitable, it makes sense to earn as much interest as possible while you still can.

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Seed oils are making headlines, prompting fears around whether they can negatively affect your health. 

Earlier this week, a study published in the journal Gut led to headlines likening seed oils to colon cancer fuel — but already some experts have said the headlines are misleading. 

For a fuller picture of seed oils, here’s what to know. 

What are seed oils?

Unlike other vegetable oils, which are derived from the fruit of a plant, seed oils are derived from the seed of a plant. For example, sunflower oil is made from sunflower seeds, making it a seed oil, whereas olive oil is made from whole olives, the fruit of the plant. 

Some seed oils like sesame, for example, can also be fragrant and add flavor to a dish or dressing, making them popular in some kitchens.

What health risks do they pose?

“Based on the evidence we have, seed oils don’t pose any health risks,” Kristina Petersen, associate professor of nutritional sciences at Penn State University, told CBS News. “In fact, when you look at the evidence, it shows that intake of seed oils, instead of fats like butter and other animal fats, actually improves blood cholesterol levels and lowers risk of diseases like heart disease (and) Type 2 diabetes.”

Dr. Steven Shamah, director of endoscopy at Lenox Hill Hospital, told CBS News, “everything in moderation.”

Like all oils, seed oils contain fat, which is important for a balanced diet but in certain quantities. But the type of fat, saturated or unsaturated, is also important. 

Saturated fats — found in meat, dairy and coconut — can raise both “good” and “bad” cholesterol levels, making limited intake recommended. The American Heart Association recommends that no more than 5% to 6% of your daily calories come from saturated fats.

Seed oils are rich in unsaturated fats, which can include both monounsaturated and polyunsaturated fats. Research suggests these fats may decrease “bad” and raise “good” cholesterol. 

These oils are also high in the omega-6 fatty acid linoleic acid, which, while essential for bodily functions, should be balanced with omega-3 fatty acids, Shamah said. 

“Linoleic acid, commonly found in seed oils in small amounts, is beneficial; however, in large amounts, puts significant stress on many forms of beneficial bacteria in the microbiome,” Shamah said, adding overconsumption can be common in modern diets because seed oils are in many processed foods.

Why do some people consider seed oils bad for your health?

Seed oil critics say linoleic acid, a omega-6 fatty acid found in these oils, breaks down into toxins when used for cooking, causing numerous health issues including inflammation, a weakened immune system and contributing to chronic illnesses.

While linoleic acid can be converted into arachidonic acid in the body, experts say this is not cause for concern. 

Petersen said these claims of “toxic by-products” are common on social media, but clinical trial data shows markers of inflammation don’t change when people eat the omega-6 fatty acid linoleic acid. Plus, only a small percentage (about 0.2%) of omega-6s is converted to arachidonic acid, according to Massachusetts General Hospital. 

Dr. Christopher Gardner, a professor of medicine at Stanford University School of Medicine in California and a nutrition scientist at the Stanford Prevention Research Center, also told the American Heart Association earlier this year that this argument around omega-6 fatty acids is flawed. While omega-6 can be pro-inflammatory, the amount of inflammation it’s associated with has not been shown to be harmful.

“Omega-6 is a polyunsaturated fat the body needs but cannot produce itself, so it must get it from foods,” Gardner said. “Polyunsaturated fats help the body reduce bad cholesterol, lowering the risk for heart disease and stroke. The American Heart Association supports the inclusion of omega-6 fatty acids as part of a healthy diet.”

People may not realize how much seed oils they’re eating because of the many processed foods that contain them. But instead of demonizing seed oils, Gardner argues the real concern should be overeating ultra-processed foods, which can have negative health impacts due to high levels of other ingredients like high-fructose corn syrup, sugar and sodium.

List of widely used seed oils

Commonly used seed oils include:

• Canola
• Corn
• Sunflower
• Pumpkin seed
• Chia seed
• Sesame
• Peanut
• Grapeseed
• Soybean

List of widely used oils that aren’t seed oils

Common oils that aren’t derived from seeds include: