This was followed by subsequent rate hikes in March and May, bringing the range to between 5.00% and 5.25%. The Federal Reserve approved its first rate hike of 2023 in February, raising the target federal funds rate to between 4.50% and 4.75%. In 2022, the Fed boosted its benchmark federal funds rate seven times, taking it from near 0% to a range of between 4.25% and 4.50% in an effort to curb inflation. How various interest rates-including those on CDs-move during the coming months will depend greatly on what the Federal Reserve does. So, while mortgage rates have been soaring, CD rates are only inching up. When Will CD Rates Go Up?īanks typically move much more quickly to charge higher interest rates on loans and credit than they do to pay higher interest on savings. Some banks have raised rates during this period of uncertainty to incentivize existing customers and attract new ones. The good news is that your bank deposits are FDIC-insured up to $250,000 per depositor, per account ownership type and per financial institution. Recent bank failures have many consumers worried about whether funds kept in CDs are as safe as claimed. As the federal funds rate increases, you can expect CD rates at many banks to follow suit. In both September and November FOMC meetings, however, the Fed decided to maintain the current target range for the federal funds rate while actively monitoring inflation to determine whether another rate increase might be needed.īanks generally use the federal funds rate as a guide when setting rates on savings and lending products. In July 2023, the Federal Open Market Committee (FOMC) again raised the federal funds rate, this time to a range spanning from 5.25% to 5.50%.

Are CD Rates Going Up?ĬD rates may be flattening out. Please click here to see your rate before applying. Up to 4.30% Annual Percentage Yield (APY) for 19 months.Up to 4.80% Annual Percentage Yield (APY) for 13 months.Up to 4.20% Annual Percentage Yield (APY) for 7 months.

Bank united cd rates 2021