3 smart CD account moves to make this week

A fresh inflation report is set to be released this week, just days before the Federal Reserve’s next policy meeting on March 18 and 19. With rising inflation still a key concern and interest rate decisions hanging in the balance, investors and savers alike are watching closely for any signs of what’s to come. The uncertainty surrounding the Fed’s next move adds to the already complex economic landscape, leaving many wondering how to best position their money in the weeks ahead.

For those with certificates of deposit (CDs) or those considering opening one, this uncertainty presents both risks and opportunities. If inflation remains stubbornly high, the Fed may hold rates steady for longer, keeping CD yields attractive. On the other hand, if inflation cools faster than expected, the Fed could start shifting its strategy sooner than anticipated — potentially bringing down the high CD rates available today. That makes this week an important time to evaluate your CD strategy.

To make the most of your savings in this shifting environment, there are a few simple but smart CD moves you should consider this week. Here’s what you need to know.

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3 smart CD account moves to make this week

If you want to ensure that your CD strategy works for today’s uncertain economic landscape, the following moves could be smart to make:

Shop around for the highest rates via online banks 

Online banks tend to offer some of the best CD rates available to savers, in part because they don’t have the same overhead costs that traditional banks do. As a result, they can pass on the savings to customers via higher rates on CDs and other interest-bearing deposit accounts. So, shopping around and comparing your options could pay off — especially if you’re taking the time to compare your options from traditional banks and credit unions to what’s available from their online bank counterparts. 

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Open a long-term CD instead of a short-term one 

Opening a long-term CD — which is a CD account with a term over one year — locks in your interest rate for a longer period of time. That ensures your CD will continue to earn returns at today’s high rates, no matter what happens with the overall rate environment. That means your returns are guaranteed for longer than they would be with a short-term CD should the rate environment shift. Opting for a short-term CD also gives your money less time to earn compound interest. The more time you give compound interest to work, the greater your returns will be, so a longer-term CD makes more sense in that aspect, too. 

Split your funds

In today’s uncertain economic environment, splitting your funds between a CD and a high-yield savings account or money market account is a smart strategy that balances security, growth and flexibility. CDs offer fixed, high interest rates, making them a great option for locking in returns, especially if rates start to decline. However, they also require you to commit your money for a set period, limiting access to your cash. That’s where a high-yield savings or money market account comes in — these accounts provide liquidity and still earn competitive interest, allowing you to access funds as needed without penalties.

This combination ensures you’re earning solid returns while keeping some money readily available for unexpected expenses or new opportunities. If inflation remains high and the Federal Reserve keeps rates elevated, your savings account or money market fund can continue benefiting from rising rates. But if the Fed starts cutting rates, having funds locked into a higher-rate CD means you won’t immediately lose out on earnings. By splitting your funds, you get the best of both worlds — earning strong returns while maintaining financial flexibility in an unpredictable economic climate.

The bottom line

Navigating an uncertain economic landscape requires a smart and proactive approach to managing your savings. By shopping around for the best CD rates, locking in a long-term CD, and balancing your funds with a high-yield savings or money market account, you can position yourself for strong returns while maintaining financial flexibility. With key economic reports and Federal Reserve decisions on the horizon, now is the time to take action and secure the best possible rates for your savings.