Federal Reserve Rate Cut Expected in September

Current CD rates are experiencing a decline as banks anticipate a Federal Reserve rate cut in September, following months of stable or high rates driven by inflation control measures. Despite the downward trend, attractive rates are still available, with some institutions offering up to 5.40% APY for short-term CDs. Experts suggest locking in rates now to benefit from existing yields before further reductions expected throughout 2024 and 2025. Online banks and digital accounts are leading with higher rates due to lower operational costs, making them appealing options for maximizing savings. A CD ladder strategy is recommended for those looking to balance returns while maintaining access to funds across various maturity dates.