The benefits of opening a CD could soon be waning. Here's why you should open one before the November Fed meeting.
When it comes to the right financial product or service, timing is everything. And, for much of the last two years, the timing was right to open a certificate of deposit account. Whether you chose a short-term CD or a long-term CD and opted to deposit $500 or $5,000, you were able to earn a return exponentially higher than you could have just a few years earlier thanks to inflation and higher interest rates.
Rates could fall in anticipation of a cutA formal rate cut will ensure that lenders lower rates on their products, both for savers and for borrowers. But that cut doesn't need to be official for lenders to preemptively get ahead of any reductions. Rates could fall in anticipation of a cut, as they did in September for mortgage rates, before the Fed took formal action. This same dynamic could play out with CDs in the final weeks of October.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Laughter and Humor 101Why we laugh, why we don’t, and why it matters
Read more »
'Substantial majority' of Fed members backed jumbo rate cut in Sept: Fed minutes'Substantial majority' of Fed members backed jumbo rate cut in Sept: Fed minutes
Read more »
Citi sees Fed cutting rates by 50 bps in NovemberCiti sees Fed cutting rates by 50 bps in November
Read more »
Don't expect September jobs report to be decisive for Fed's November move: BofADon't expect September jobs report to be decisive for Fed's November move: BofA
Read more »
Fed unlikely to 'skip' cutting rates in November: CitiFed unlikely to 'skip' cutting rates in November: Citi
Read more »
Bostic signals Fed skip on rate cuts in November can't be ruled outBostic signals Fed skip on rate cuts in November can't be ruled out
Read more »