Are CD accounts still valuable with interest rate cuts? Here are three reasons why they’re still worth opening.
The moment borrowers have been waiting for finally came to fruition on Wednesday when the Federal Reserve announced its first rate cut since 2020. Frozen at a range between 5.25% and 5.50% for more than a year — — the federal funds rate was lowered by half a percentage point to 4.75% to 5%. And it could fall even further this year with two more Fed meetings scheduled for November and December.
While lenders don’t follow the Fed directly, a reduction in the benchmark rate will inevitably result in lower rates for borrowers. And though that may provide some much-needed economic relief, it will also start reducing what savers have been accustomed to earning in recent years with products like and .
CDs, in particular, have been a smart option for savers over the last few years, thanks to their high, locked rates. But are they still worth pursuing now that the Fed has started cutting interest rates? That’s what we’ll break down below.
Start earning more on your money with a top CD online today.Is a CD still worth it now that the Fed has cut rates?
While a Fed rate cut may seem to make CD accounts less attractive, there’s a compelling case to be made for opening one now while the benefits are still significant.
