At its past policy meeting in July, the Federal Reserve elevated the focus on for the federal funds rate, a vital overnight financial institution lending fee, to a vary of 5.25% to 5.50%. It was the 11th level hike due to the fact March 2022 as component of the central bank’s campaign to lower inflation to 2%. Whilst this tends to make borrowing revenue additional costly, it also improves the yearly percentage produce (APY) you could get on a savings account or certificate of deposit (CD).  

Is now a very good time to invest in CDs? This is a glimpse at the pros and negatives.

What is a CD?

By Sia