Good Time to Lock in CD Rates

Good Time to Lock in CD Rates

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With it looking likely that the Fed is going to drop rates, now might be a good time to lock in decent returns with some moderate term CDs.

With many predicting that the Fed is going to lower the federal funds rate, now might be the time to lock-in a decent rate on a 1or 2 year CD.  It’s possible the mortgage crisis could deepen and if it does that would force the Fed to cut further, leading banks to reduce the rates they pay on CDs and savings accounts. 

When the stock market bubble popped in 2000, the Fed cut rates from 6.5% to a low of 1% and the yields on CDs and Savings Accounts went down with it.  The average yield on a 1-year CD was only slightly above 1% four years ago, compared with yields of over 5.5% today. 

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Today's Highest Online CD Rates

Bank Product Term Interest Rate (APY)
Gateway First Bank 1-Year 0.75% APY with $25,000 minimum
Connexus 1-Year 0.71% APY with $5,000 minimum
Banesco USA 1-Year 0.70% APY with $1,500 minimum
USAA Federal Savings Bank 3-Year 0.91% APY with $175,000 minimum
Connexus 3-Year 0.90% APY with $5,000 minimum
Comenity Direct 3-Year 0.85% APY with $1,500 minimum
Primary Bank 5-Year 1.15% APY with $1,000 minimum
USAA Federal Savings Bank 5-Year 1.11% APY with $175,000 minimum
Community Federal Savings Bank 5-Year 1.10% APY with $500 minimum

See More Online CD Rates →

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