Today's high rate climate has affected CD accounts, too. Here are four things to know right now:
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CD Rates Reflect Economic Trends CD interest rates are not static but rather fluctuate based on economic trends. When the economy is performing well, CD rates tend to be higher. Conversely, during times of economic uncertainty or recession, CD rates decrease. It is important to monitor economic indicators to understand how they may impact CD rates.
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Higher CD Rates Are Available You can find CD terms with yields above 5.0%, which is a welcome change from the post-Great Recession period of low-interest rates. Banks and financial institutions are competing to attract customers by offering higher rates on their CDs. This provides an opportunity for individuals to earn more on their investments.