While borrowers may be hoping that the Federal Reserve will implement more rate cuts later this year, easing the cost of borrowing, today's market uncertainty has resulted in varied predictions for interest rate cuts. Should the Fed cut rates later in 2025, though, it would likely lead rates to drop on low-risk, stable investment options such as certificates of deposits (CDs) — lowering the possible returns that savers can earn on these types of deposit accounts.
Main Idea: The Federal Reserve’s possible rate cuts could lower CD returns, so the article says locking in a long-term CD now may help savers earn more on a $20,000 deposit.
Key Points:
If the Federal Reserve cuts rates, savers may earn less on CDs and other safe deposits. Households that wait could miss today’s higher yields.
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