High Interest Rates Make Short-Term CDs Attractive Despite Cooling Inflation

Experts predict a fall in rates in 2024, making it advantageous to lock in high rates now.

With inflation cooling and interest rates still high, it could make sense for many to open a short-term certificate of deposit (CD) account now.
Rates on these accounts are still high now, with accounts offering a rate of 5.5% not difficult to find.
Many experts expect rates to fall in 2024, making it advantageous to lock in a high rate now.
Alternatives to short-term CDs, such as long-term CDs and high-yield savings accounts, do not offer the same high rates.
Despite inflation cooling, the Federal Reserve may choose to pause rates again, potentially leading to savings rates staying where they have been or possibly decreasing slightly.