What could happen to CD interest rates this October? Here’s what experts think.

by Christy Bieber, CBS MoneyWatch

Certificates of deposits (CDs) have become a popular investment in the post-pandemic era and it’s easy to see why. CD rates soared as the Federal Reserve raised the benchmark interest rate to fight inflation. While high-yield savings account rates also climbed, many borrowers opted for CDs over savings accounts because savings account rates are variable while CD rates are locked in.

CDs may be losing their allure, though, as a recent Fed rate cut means there are now fewer options for CDs offering yields above 5.0%. For borrowers wondering whether to open a new CD or savings account before the Fed cuts rates again, it can be helpful to see where experts think rates will trend this October.

 

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