The Fed just cut interest rates — but CD buyers still have one more chance to act

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The Fed cut interest rates today – and Treasury yields will (eventually) follow

The Federal Reserve today announced another quarter-point interest rate cut, following a similar cut in September. For savers, this means lower CD yields on the way. When the Federal Reserve lowers interest rates, banks and credit unions typically lower their deposit rates in response.

But these changes don’t happen all at once, and this week’s timing may give CD shoppers a small advantage. While some institutions may move quickly to lower their CD prices, many remain flat until the start of a new month. This pattern may buy savers more time before the next wave of interest rate cuts begins.

Why Monday could bring the biggest drop in CD prices

Many banks and credit unions update their CD rates on a regular schedule – with the beginning of each month being a common interval. This means that the first business day of November, next Monday, is when many institutions are likely to report new lower yields in response to today’s Fed announcement.

In other words, the Fed’s move today sets the stage, but Monday may be when we see the most red ink on the CD rate sheets. For anyone still shopping for a high-paying CD, this means you may have a few extra days to get the higher price. Just don’t wait too long because there is no guarantee. Any CD show can disappear overnight, so join in as soon as you can.

How to find the best CD prices before they drop

Even with the Fed’s rate cut, CD shoppers still have plenty of solid options — but the sooner you act, the higher your APY potential. Online banks and credit unions continue to lead the pack, offering some of the most competitive returns nationwide.

Before prices drop, check out our daily ranking of the best CDs to see which establishments are still holding their highest prices. Now, you can earn 4.30% to 4.40% With the highest paying CDs with terms ranging from 3 to 13 months. For longer commitments – from 18 months to 5 years – the highest rates nationwide are currently between… 4.00% and 4.25%.

If most of your money is in a savings account but you can do without some of it for a while, holding a CD now can help maintain today’s high interest rates for months — or even years — to come. Don’t wait too long: With the Federal Reserve’s official interest rate cut, the best CD offers could disappear quickly.

How to Find the Best Savings and CD Rates

Each business day, Investopedia tracks rate data for more than 200 banks and credit unions that offer CDs and savings accounts to customers across the country and determines a daily ranking of the highest-grossing accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial account deposit must not exceed $25,000. It is also not possible to determine A maximum The deposit amount is less than $5,000.

Banks must be available in at least 40 states to be eligible to be available nationwide. While some credit unions require you to donate to a specific charity or association to become a member if you do not meet other eligibility criteria (for example, if you do not live in a certain area or work a certain type of job), we exclude credit unions with donation requirements of $40 or more. To learn more about how to choose the best rates, read our full methodology.