🏦 Is Now a Good Time to Lock In a CD Before the Fed's June Move?

😎 Market Vibes

The Fed's next big move? Slated for June 17-18. And with interest rates still cruising at decade-highs, some folks are watching closely to see if now is the moment to make a move on a high-yield savings account or CD - or wait for the next signal from Powell & Co.

Here's what's in play - and how some savers are strategizing.

^_[sponsored]

Study: Have This Much Money? You Might Want a Financial Advisor

Money can’t buy happiness, but this study indicates paying a financial advisor could potentially help. The results of the study also suggest that those with financial advisors experience greater satisfaction outside of their relationship with money. Which high-net-worth individuals were happiest? Click here for a breakdown of the study.

🧠 Why the Federal Funds Rate Even Matters

While the Federal Reserve doesn't set consumer interest rates, its decisions around the federal funds rate often trigger a ripple effect. That rate - currently sitting in the 4.25%-4.50% range - is what banks charge each other for overnight lending. But when it shifts, deposit account rates often tag along.

• If the Fed raises rates, yields on things like high-yield savings accounts and CDs tend to climb.

• If it cuts, those rates usually slide.

This chain reaction is one reason some people monitor the Fed's movements when thinking about where to stash their short-term cash.

📅 What's Happening on June 17-18?

At its last meeting, the Fed held its rate steady - and it hasn't budged since December 2024. There's growing speculation that the Fed might stay the course again in June. If so, CD and savings rates could hover around current levels for a bit longer.

Of course, nothing's guaranteed. A surprise rate cut could mean that today's elevated yields may not stick around forever - and that's the kind of backdrop that gets savers and rate-watchers paying extra attention.

💸 CD or Savings Account? Here's What Some Are Comparing

Right now, many high-yield savings accounts are offering APYs in the 4%+ range, while CDs are advertising even higher for longer-term commitments. Compared to the 0.42% national average on traditional savings accounts, the potential difference in earnings can be eye-opening.

Example math:

• $10,000 in a 0.42% account = ~$42 in interest over a year

• $10,000 in a 4.00% account = ~$400 in interest

That kind of gap is part of why more people are checking rates and comparing options - especially before any potential Fed pivot.

🧐 So Why the Timing Talk?

There's no way to time the market perfectly - or Fed decisions, for that matter. But for those trying to maximize return on idle cash, the current rate environment has presented more favorable options than we've seen in years.

Some savers view this moment as a chance to lock in yields before any changes. Others may prefer to keep things flexible and wait to see what the Fed does next. Either way, the June meeting is shaping up to be a rate-watch moment.

If you're looking for more ways to get your side hustle on, check out this message from our partners at The Trading Pub:

Only A Handful Of People Know The Setup That's Defied These Chaotic Markets

I’ve shown regular folks how to leverage a hidden anomaly that has the power to pay out at the 4PM close.

Even better… Since February, we've hit 28 out of 29 trades – that's a 96% win rate taking simple options setups on one single ticker every day.

That's why Jack Carter and I teamed up to reveal The 4PM Payout Plan.

And if you want to be one of the few to not just know the ropes behind these daily setups but also deploy them for yourself…

Go here now to get started on what could become your first 4PM payout.

🧐 What do you think?

✌️ Thanks for vibing with us. Hit reply and let us know your take on savings accounts and investing.

⚠️ WARNING: Market data is subject to rapid change. Verify current information before making trading decisions. This is not financial advice.

DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in the linked report. The past performance of any trading system or methodology is not necessarily indicative of future results. All trades, patterns, charts, systems, etc., discussed in the linked report are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. For full disclaimer information, click here.