CD Rates Expected to Rise as Federal Funds Rate Increases
Swerd Media – In the ever-changing landscape of banking, it is crucial for consumers to stay updated on current interest rates. For those interested in certificates of deposit (CDs), Swerd Media is proud to provide information on CD rates from top national banks and credit unions.
CD rates have been on the rise, and experts predict that they will continue to climb. This is largely due to the anticipated increase in the federal funds rate by the Federal Reserve. Since March 2022, the Federal Reserve has been gradually increasing its benchmark rate in an effort to combat high inflation.
The cumulative increase in the benchmark rate has pushed savings and CD rates to their highest levels since 2007. Many consumers are eager to take advantage of these favorable rates by investing in CDs. However, it is important to note that the highest rates quoted on Swerd Media may differ from national averages.
Investopedia, a trusted source for financial information, tracks rate data from over 200 banks and credit unions to determine daily rankings of top-paying certificates. Institutions included in their research must be federally insured and have a maximum initial deposit of $25,000. Additionally, banks must be available in at least 40 states, and credit unions with donation requirements of $40 or more are excluded.
Swerd Media urges consumers to be mindful of the methodology used to choose the best rates. Investopedia provides a comprehensive explanation of their selection process on their website. It is essential for consumers to understand the factors that influence CD rates to make informed decisions about their investments.
While the Fed held its benchmark rate steady last month, there is the possibility of two more rate hikes later this year. However, recent reports indicating lower-than-expected inflation may suggest a potential slowdown in rate hikes after July. Nevertheless, rate hikes by the Fed are expected to lead to even higher CD rates in the near future.
As always, Swerd Media strives to provide accurate and up-to-date information on CD rates for the benefit of its readers. By staying informed, consumers can make the most of their investment opportunities and secure the best possible returns on their savings.
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