Federal Reserve cuts interest rates, top CD rates drop to 4.70% APY

The Federal Reserve cut interest rates this week, leading to a decrease in certificate of deposit (CD) rates. Current top CD rates offer up to 4.70% annual percentage yield (APY), but rates are expected to fall further. Since the Fed's previous rate cuts, average APYs on six-month CDs have dropped from 4.92% at the start of 2024 to 4.14% this week. This trend follows a series of rate increases from March 2022 to July 2023, which had previously boosted CD rates. Experts suggest that now is a good time to open a CD to lock in higher rates before they decline. Comparing rates from various banks can help consumers find the best APY for their savings.