Are CDs a Good Investment in 2024?

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 certain types of bonds, making them a popular choice for risk-averse investors looking to grow their savings over time. While CD rates have been rising steadily, they may offer lower yields than other types of investments. Are they a good option to maximize your returns in 2024?

Rates on CDs skyrocketed in 2023, but will the trend continue into the New Year and beyond? Our forecast explores where CD interest rates are headed and whether it's worth locking in your money for a fixed term. Mapping out plans to build your savings can be challenging, especially when interest rates fluctuate. A certificate of deposit (NASDAQ:CD) is a good alternative if you're looking for a secure and predictable way to grow your money.

The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, but we can help you make informed decisions about your financial future. CD rates are very high right now, but that doesn't mean that you should be putting all your money into them. Find out why CDs may not be a good fit for every investor and what other options you may want to consider.

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 could be a good time to take advantage of these rates, especially if you're looking for a low-risk investment with guaranteed returns. Yes, if you need access to the money soon (or aren't sure when you'll need it). Often, the choice between a short-term or long-term CD comes down to your financial goals and risk tolerance.

Delve into IRA CDs, their potential for stable growth, tax advantages, and considerations before investing. Learn how to secure your retirement with this unique investment option. With the right strategy, CDs can be a valuable addition to your investment portfolio. Consider the pros and cons carefully before deciding if CDs are the right choice for you in 2024.