Are CDs Still a Good Investment in 2024?

In today's uncertain economic climate, many people are looking for safe and reliable ways to grow their money. Certificates of deposit, or CDs, have long been considered a solid investment option for those seeking a guaranteed return on their savings. CDs can pay better rates than standard savings accounts and offer a guaranteed rate of return in exchange for locking up your money for a set period of time.

CDs are appealing for many reasons: they're relatively safe investments, offer stellar APYs, and come in a variety of different term lengths. This flexibility allows investors to choose a CD that aligns with their financial goals and timeline. However, CD rates may be lower than they were a month ago. But read on to see why you should still consider opening one.

Rates on CDs skyrocketed in 2023, but will the trend continue into the New Year and beyond? Our forecast explores where CD interest rates may be headed and what factors could impact their trajectory. Certificates of deposit have some of the highest interest rates among bank accounts, with the best rates reaching 5% and above.

A certificate of deposit is a type of savings account with a fixed interest rate and term. CDs are a safer investment than stocks and other riskier assets, making them an attractive option for those looking to protect their principal while earning a competitive return. CD rates have fallen slightly, but they're still a good choice in certain scenarios. Find out whether CDs are the best choice for your financial situation.

CD interest rates are high in 2024 — higher nationally, on average, than they've been in more than a decade, according to Forbes Advisor. This presents a compelling opportunity for investors to take advantage of competitive CD rates and grow their savings over time. The Fed began aggressively cutting interest rates on Sept. 18, as targets to tame inflation are being met. Economists expect rates to remain low for the foreseeable future, making CDs an attractive option for conservative investors.