Why CD Rates Have Dropped This Year, and Why You Shouldn't Panic

Certificates of Deposit (CDs) are a favorite for people who want safe and predictable ways to save. Lately, CD rates have been high, making them really attractive. But now, inflation is slowing down, and the Federal Reserve has cut their rates twice. So, CD rates are going down too. Even so, CDs still offer good returns compared to the past. You can still find CDs with rates over 4% right now.From January to now, 6-month CD rates dropped from 5. 50% to 4. 85%. That's a drop of more than 11%. 1-year CDs fell by almost 20%, from 5. 66% to 4. 50%. Shorter terms like 3-year CDs didn't drop as much. This is because of changes in the economy, like slower growth or less inflation. But even with these changes, CDs are still a great way to save safely. Even with the recent drops, CDs are still a good choice for people who want steady returns without taking risks. They might not earn as much as before, but they're still better than regular savings accounts. And your money is protected by the government up to a certain amount. So, it's still worth considering a CD, even in this changing rate environment.