The Fed Just Cut Rates—But CD Buyers Still Have One More Chance To Act

Key Takeaways

Today’s quarter-point Fed rate cut will nudge CD yields lower, but based on our rate-tracking experience, we expect many banks won’t adjust their rates until Monday.
That could give savers a couple bonus days to lock one of today’s top CD yields—still ranging from 4.00% to 4.40% across terms.
But act fast. There’s no guarantee any particular CD rate will last until next week—so the sooner you lock in, the better.

The full article continues below these offers from our partners.

The Fed Cut Rates Today—And CD Yields Will (Eventually) Follow

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

But those changes don’t happen all at once—and this week’s timing could give CD shoppers a small advantage. While some institutions may move quickly to lower their CD rates, many hold steady until the start of a new month. That pattern could buy savers just a little more time before the next wave of rate cuts hits.

Why This Matters to You

Though the Fed cut interest rates today, banks and credit unions that typically adjust CD rates monthly may not lower yields until Monday. But there’s no guarantee—so the sooner you lock in, the better.

Why Monday Could Bring the Biggest CD Rate Drops

Many banks and credit unions update their CD rates on a regular schedule—with the start of each month being a common interval. That means the first business day of November, this coming Monday, is when many institutions are likely to post new, lower yields in response to today’s Fed announcement.

In other words, the Fed’s move today sets the stage, but Monday could be when we see the most red ink on CD rate sheets. For anyone still shopping for a top-paying CD, that means you may have a couple more days to snag a top rate. Just don’t wait too long since there’s no guarantee. Any CD offer can disappear overnight, so lock in as soon as you can.

Another Fed Cut Could Come Sooner Than You Think

Another Fed rate cut is possible in December, which means yields could fall again soon after. That means locking in a top CD rate now isn’t just about protecting against this week’s changes—it can also shield your returns from the next wave of cuts that may arrive.

How To Find the Best CD Rates Before They Fall

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

Before rates slip lower, check our daily ranking of the best CDs to see which institutions are still holding their top rates. Right now, you can earn 4.30% to 4.40% with the highest-paying CDs on terms ranging from 3 to 13 months. For longer commitments—18 months to 5 years—the top nationwide rates are currently between 4.00% and 4.25%.

If most of your cash is sitting in a savings account but you can get by without some of it for a while, locking in a CD now can help preserve today’s higher rates for months—or even years—to come. Just don’t wait too long: with the Fed’s rate cut now official, the best CD offers could disappear quickly.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

Important

Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

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