Smart savers know that CDs can pay big. Kristina Kokhanova/Getty Images
My savings account has been sorely disappointing me lately. No matter how many times I check my balance, it feels like opening the fridge for the fifth time, hoping something new will appear. Fortunately, the solution is simple: I just need to shop around.
With the Federal Reserve holding interest rates steady at this week's meeting, annual percentage yields on certificates of deposit should remain high for a while. That means if I move my cash to a CD this summer, I can get a chunk of interest back on my balance. And unlike my fridge, which needs regular restocking, a CD promises steady growth without having to do a thing.
Read more: Here's the Secret I Learned About Opening a CD at Just the Right Time
Low risk, guaranteed returns? Yes, please!
CDs aren't exciting, and they won't make you rich overnight. But boring and predictable can be a good thing, especially in today's economy, when people are scared to invest and nervous to spend. Stock market swings, tariff fallout and stupidly high prices are making savers run to safety.
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 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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Some CDs offer 4.5% APYs
The Fed left its benchmark interest rate the same at this week's meeting on June 18 and will likely do the same on July 30. Experts say the central bank will keep borrowing rates high for a couple of months, with most saying a rate cut won't come until its Sept. 17 meeting.
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