If the time is NOW for you to invest in a certificate of deposit (CD), savings account, or money market, the knee-jerk question on your mind is, " What’s the strong rate, followed by, " Which product fits my savings needs best?
CD rates continue to remain historically elevated and preserve returns better than adjustable-rate savings and money market accounts.
We have listed CDs as a UTILIZE, with a strong rate at 3.72% for a 12-month maturity. But be careful with going long on CDs right now.
We have also listed savings accounts and money markets as UTILIZE, with a strong rate is 3.68%. Be careful of the terms on new account offers!
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SOURCE: Dollar180 Analysis of FDIC Data, June 2026.
We report strong rate indicators even when we avoid a deposit product, so you have it if needed.
Hello friend,
We’re back again in June to gauge today’s deposit account rate environment.
So far, no fever or chills.
That’s surprising, considering all the buzz surrounding the Federal Reserve’s transition to new leadership. Just two weeks ago, newly appointed Chair Kevin Warsh was officially in the left seat, captaining the Fed, relieving outgoing Chair Jerome Powell after his eight-year tenure.
Warsh, who said shortly before his appointment that he wants “messier” Fed policy meetings with more debate, got his wish sooner than expected, although perhaps not the way he wanted it. Just in the past week, several central bank officials have made comments, both publicly and privately, challenging the Fed Chair – although not naming him directly – on core assumptions and positions that he has held since he became a candidate for the top position. Messier, indeed, adding more confusion to an otherwise orderly Fed that’s now grappling with the continuing sagas of economic uncertainties stemming from the war in Iran, the unexpected boost in the jobs report and persistently high inflation.
With all this political and economic Sturm und Drang, it’s no surprise that policymakers, financial analysts and market prognosticators are predicting that the Fed’s Federal Open Market Committee (FOMC) will keep its benchmark federal funds rate steady at a range of 3.50-3.75% at its next meeting on June 17. According the CME Group’s FedWatch tote board, there’s more than a 96% probability that the Fed will keep rates steady. That’s not going to sit well with President Donald Trump, who’s been pressuring the Fed to lower rates since he took office nearly 18 months ago. Given an unexpectedly strong nonfarm payroll gain of 172,000, an unemployment rate holding steady at 4.3%, and the inflation rate still stubbornly high, the likelihood that the Fed will lower rates anytime soon is becoming a fading prospect.
And there are already signs that the Fed may raise rates later this summer. CME’s data, for example, suggests at 70.8% hike in rates by the Fed’s Dec. 9, meeting, the majority of which seeing rates rise by either 25 to 50 basis points, or up to a range of 3.75-4.00% or 4.00-4.25%.
Which brings us back to the continuing dilemma facing savers today, specifically certificate of deposit (CD) investors who are anxious to preserve and grow their savings at a time of economic and market uncertainties. Whether the Fed plains to raise, maintain or lower rates later this year, CD investors continue to seek answer to four fundamental questions:
Is today the right time to open a CD to lock in a high-yielding interest rate—possibly for the long term?
What is considered a “good” high-yielding rate should you lock in your funds in a timed investment, such as CDs or U.S. Treasuries?
What maturity date most supports strong yield from a longer-term standpoint of 3-5 years?
Which deposit product most protects from the wide potential for higher or lower deposit rates?
In search of answers to these questions, it’s important to note that preserving and protecting a strong and consistent yield over the course of one year is potentially more important than choosing the highest yield from a shorter-term period of six months or less today.
We are bullish on CDs, and now high-yield savings accounts
Our support for CDs remains strong: CDs are locked-in products, impervious to changes in interest rates, unlike savings and money market accounts, which are adjustable-rate products. CD rates in recent years have been historically elevated and remain positioned to preserve returns, with a strong rate of 3.72% for a 12-month CD. But be careful with going long on CDs right now.
For savers who insist on staying put in savings or money market accounts, well, this is your time to take a victory lap as we feel it’s worth utilizing high-yield savings (HYSA) and money market accounts (MMAs) with a strong rate of 3.68%. And if interest rates rise as predicted by the end of this year, there could be more opportunities for savers to lock in their savings at a higher annual percentage yield (APY).
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Economics: No obvious sign that rates will fall this year
New Fed leadership, an unexpectedly higher jobs report, and uncertain geopolitical and economic outlooks are keeping the Fed in a holding pattern when it comes to determining future interest rate moves. So far, they’re maintaining their rate range of 3.50-3.75%. It’s clear given all the messiness at the Fed, in the U.S. and globally, the need to lower rates this year is a diminishing prospect. But here is what we are seeing:
Inflation remains above target for the Federal Reserve: Over the past 12 months ended in April, the all-items index increased 3.8% before seasonal adjustment. That’s considerably higher than the 3.3% rate reported for the 12-month period ended in March, and considerably higher than the 2.4% rate for February.
Higher inflation points directionally toward higher deposit rates if employment markets remain strong.
Unemployment: The latest Labor Department report on claims for jobless benefits continue to suggest a stable labor market. In the week ending May 16, seasonally adjusted initial claims were 209,000, down 3,000 from the previous week’s final level of 212,000. The four-week moving average was 202,500, also lower than the prior week’s final average of 204,000.
Potentially forecasts a no-change or rate increase in the future.
GDP: The Federal Reserve Bank of Atlanta’s GDPNow model estimates real GDP growth for the second quarter of 2026 at 4.3% on a seasonally adjusted annual basis. That is up from the 4.0% estimate reported on May 14.
The upward move reflects stronger nowcasts for two important parts of the economy. After recent releases from the U.S. Census Bureau and the Fed, the GDPNow estimate for second-quarter real personal consumption expenditures growth increased from 2.7% to 2.9%. The estimate for real gross private domestic investment growth rose from 10.2% to 11.4%.
Potentially forecasts a change or rate increase in the future.
Bottom Line
For CD savers, the tealeaves in the latest data continue to suggest that the Fed’s FOMC may likely raise interest rates later this year. Credit the compounding uncertainties of geopolitics, rising energy prices, inflation and a new Fed locked up in debate among its own policymakers.
CDs protect your yield in uncertain times, especially if rates decline; savings accounts do not. CD rates are locked in, while savings account rates can fall quickly if institutions decide to lower deposit costs. That makes CDs useful for savers who want to protect income over a defined period, especially when the risk of decreases in rates appears greater than the risk of increases. But now that there’s a good chance for rates to rise later this year, considering depositing your savings in a HYSA or MMA could be a worthy option.
For now, keep vigilant on the direction of rates. You’ll do well locking in a high-yielding APY on a CD, a HYSA and an MMA now, but keep a watchful eye on interest rates that might go up as high as 50 basis points come December.
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