economy
What's a good CD interest rate this August?
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TL;DR
- Interest rate expectations for August have shifted due to inflation, oil prices, and the war with Iran, altering the Federal Reserve's expected trajectory.
- A Fed rate hike in September is a distinct possibility, making it important for consumers to reassess what constitutes a good interest rate.
- Competitive CD rates are available now, with fixed terms ranging from 3 months to 3 years, offering rates from 3.95% to 4.50%.
- Savers should consider the early withdrawal penalties associated with CDs and ensure they can commit to the full term to realize the earned interest.
- High-yield savings accounts offer a flexible alternative with variable rates competitive with top CDs, allowing for easy access to funds.
- Traditional savings accounts currently offer a low average rate of 0.38%, making CDs or high-yield savings accounts significantly more profitable.