Savvy savers are flocking to CDs — here’s why you should too
Sky-high interest rates drew savers back to certificates of deposit (CDs) in droves last year: Balances in CDs grew to $418.4 billion in January from just $36.5 billion in April 2022, according to the Federal Reserve.
In these uncertain economic times, CDs offer two advantages: They’re generally low-risk, as long as they’re offered by an federally insured institution. And thanks to the Federal Reserve’s ongoing rate hikes, interest rates on CDs are also rising. (The Fed doesn’t set interest rates on CDs or other consumer financial products, but when it raises rates, other interest rates tend to go up too.)