Best CD Rates of 2020

The Federal Reserve and CD rates

The Federal Reserve’s interest rates decisions can impact the rates that banks offer on CDs. When the Fed raises or lowers the federal funds rate, banks typically respond by moving CD rates in the same direction.

The Fed in December forecast it will not adjust rates in either direction in 2020, so that would mean CD rates likely will hold steady as well. However, it’s worth noting that the Fed entered 2019 forecasting two rate hikes for the year but instead cut rates three times.

If you’re concerned about rates potentially decreasing or want to lock in a fixed yield, a CD may be right for you. Savings accounts and money market accounts generally have variable rates, meaning your yield can decrease. Introductory rates on those accounts are an exception to this rule. Into rates may give you a fixed rate during the introductory period, though there may be certain requirements to keep this rate.

Best CD rates from top banks

Before applying for a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision. Here are Bankrate’s top picks for banks with the best CD rates: