Strategies for Handling Your CD Maturity in 2025

Economy

1 year ago

News sources:

Credited from: CBSNEWS

Certificates of Deposit (CDs) opened in 2023 or early 2024 often secured high interest rates over 5%, but the market has changed significantly going into 2025.
The Federal Reserve's interest rate cuts have lowered rates for both borrowing and savings accounts, impacting CD returns.
Savers with expiring CDs should consider their options during the grace period, which allows for strategic decision-making before automatic account rollover.
Options include long-term CDs for potentially better returns or CD laddering to balance higher rates with flexibility.
Online banks may offer better rates than traditional banks, essential for maximizing savings as interest rates fluctuate.

For the full article, visit CBS News.