Keep in mind that it’s a good idea to take advantage of savings rates while they remain high, as yields on CDs are expected to peak and then level by the end of the year.Īccording to Bankrate, by the end of 2023, the national average for one-year CDs is estimated to increase to 1.8% up from 1.38% at the end of 2022. However, if the Fed decides to raise rates again before the year is through, there's a chance savings rates could rise a bit. While inflation is down from last summer, when it surpassed 9%, it’s not at the Fed’s desired 2%.įollwing the Federal Reserve’s decision, rates on CD accounts have started to fall slightly. However, the Federal Reserve has signaled there will likely be another rate hike later this year.

This pause in rate hikes means the fed funds rate remains at a target range of 5.25% to 5.5%, the highest it’s been in 22 years. And as interest rates keep rising, so do rates on high-yield savings accounts and CDs.Īs was expected, the Federal Reserve held interest rates steady for the second consecutive time at its November policy-setting meeting. To combat inflation, the Federal Reserve has raised interest rates 11 times since March 2022.

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