CDs are quietly winning with guaranteed returns. Kristina Kokhanova/Getty Images
The other day, I found myself staring at my static savings account balance, kind of like when you open the fridge for the fifth time, hoping something new will appear. My money was just sitting there in the bank, earning next to nothing. That's when I realized I wasn't taking advantage of the moment.
All the financial headlines talk about interest rates being at 20-year highs. We're living in a rare period with certificates of deposit offering yields we haven't seen in over a decade. The Federal Reserve isn't planning to cut interest rates until the fall (at the earliest), which means locking up your money in a CD before the summer ends is a sensible move.
In fact, I'd argue that putting money into a low-risk CD with competitive returns is a power move, a small rebellion against a volatile market and the usual slow drip of savings growth.
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A CD is a smart move for safe savers
Many people are scared to invest and nervous about spending right now. Stock market swings, tariff fallout and stupidly high prices are making savers run to safety.
CDs aren't exciting, and they won't make you rich overnight. But boring and predictable can be a good thing, especially when the economy is too exciting (in a bad way).
When you lock up your savings into a CD for a set term and leave it untouched, your earnings are guaranteed. Your annual percentage yield (APY) won't drop even if overall interest rates drop. It's a quiet, easy way to get a little extra cash, kind of like discovering a $10 bill in your jeans pocket every month.
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