Should I buy a CD now or wait for higher rates?
What to consider when deciding whether to lock in a rate now or wait and see what happens.
Key takeaways
If you think rates on certificates of deposits (CDs) have peaked, opening a CD now means you’ll have a solid, predictable return, even if rates drop further.
If you believe interest rates might rise again soon, holding off could give you the chance to secure a higher APY later, but there’s a risk of missing out if rates fall.
Your decision also depends on how soon you’ll need to tap into your savings and whether a shorter- or longer-term CD fits your particular goals.
What does the current CD rate environment look like?
Last updated: November 2025, based on publicly available rate data.
Interest rates on certificates of deposit (CDs) have cooled in recent months. National figures from the FDIC show an average rate of 1.64% on 1-year CDs in November 2025, down from 1.84% in the year prior.¹ However, because this is a weighted average across thousands of banks, the figure could be pulled down by the generally less competitive yields of big, brick-and-mortar banks. Savers may still be able to access higher promotional CD rates through smaller online banks.
This downwards trend has partly been driven by recent Federal Reserve activity. The Fed cut interest rates by a quarter of a percentage point each in September, October, and December 2025, and banks have been gradually adjusting CD yields in response. While some analysts predict a further cut, there’s no saying exactly what will happen to CD rates next year.So, is now a good time to open a CD? The answer to this depends on individual circumstances. Yields vary widely based on the provider and whether you’re looking into online or branch-based banks or credit unions. That’s why some people choose to shop around and compare their options.
Current CD options and rates at Raisin
To help you compare what’s available in today’s market, here’s a snapshot of current CD offerings from Raisin’s partner banks and credit unions.
Bank
Product
APY
Maturity
Raisin is not an FDIC-insured bank or NCUA-insured credit union and does not hold any customer funds. FDIC deposit insurance covers the failure of an insured bank and NCUA deposit insurance coverage covers the failure of an insured credit union.
How the Federal Reserve helps determine CD rates
The Federal Reserve aims to influence borrowing and spending, and it does this by adjusting the federal funds rate. This rate determines the interest rate that banks in the United States pay one another to borrow or lend funds overnight. When the economy slows, the Fed may cut rates to encourage borrowing; when inflation is high, it may raise them to bring it under control.
These shifts have a knock-on effect throughout the financial system, affecting the interest rates offered on CDs, high-yield savings accounts, and money market accounts. Because of this, anyone wondering, “Should I buy a CD now or wait?,” might keep an eye on the latest federal funds rates and how they are trending.
Should I buy a CD now?
While there’s no knowing what will happen with interest rates, locking your funds in a CD with a competitive annual percentage yield (APY) can offer stability for savings as bank rates adjust downward. Opening a CD now gives you a fixed, guaranteed return that won’t change for the duration of the term — even if the Fed funds rate changes. With a CD, you know exactly what you’ll earn by the end of the term (unlike variable-rate accounts, which can go up or down).
That said, CDs often require a lump sum deposit upon opening, and withdrawals before maturity are usually not allowed. That’s why it’s important to consider what you’re saving for, when you’ll need the money, and whether you can commit your funds for a set term. Matching savings goals with CD maturity dates can help prevent early withdrawal penalties.
Reasons to wait for higher rates
Depending on the outlook, some savers may choose to hold off and see how rates evolve. This is particularly true of longer-term CDs. Some savers are concerned about being stuck with the lower rate for the entire term if rates rise shortly after buying a CD. If you think the Federal Reserve might pause or scale back upcoming rate cuts, delaying the purchase of a CD could leave room for improved yields down the line.
Keeping funds in a more flexible account such as a high-yield savings account or money market savings account can give savers an edge if the interest rate landscape changes again. These accounts still let you earn a competitive return. Plus, you can move your cash more easily if rates shift. Another option is a bump-up CD, which lets you increase your rate once during the term if market rates rise.
Because long-term CDs lock your funds in until they reach maturity, this cash will be unavailable for any unanticipated expenses. Accounts that keep funds in easy reach may appeal to savers who have short-term financial needs or those looking to maintain liquidity.
Pros and cons of buying a CD now vs. waiting
| Buy now | Wait |
Decision | Buy a CD now to lock in current rates | Hold off and wait for potential changes in rates |
For whom | Savers with medium- to long-term plans who won’t need the money before maturity | Savers who want more liquidity or want to reassess strategy |
Pros | Can lock in a competitive APY before potential further rate drops. Provides peace of mind and predictable returns. | Allows time to rethink your broader savings plan. Keeps funds liquid while evaluating the best option. Could benefit if rates rise or cuts slow. |
Cons | Reduces flexibility – early withdrawal penalties may cut yield. Risk of missing out if rates rise later. | Money may earn less if left in a savings account. Top high-yield CD options might disappear. Indecision could delay action when rates are favorable. |
Short-term vs. long-term CDs
When the Federal Reserve cuts rates, short-term CD options can offer a similar APY to longer terms. This is because banks and credit unions sometimes reduce their long-term CD rates faster to avoid locking in higher payouts for several years if they believe the overall rate environment is headed lower. At the same time, they may keep short-term rates relatively competitive to attract new deposits.
Short-term CDs of up to 12 months could be appealing if you expect to need cash in the near future. These shorter terms let you earn a solid APY without sacrificing access to your money. Even if rates change again, this option lets you roll your money into a new CD at a potentially stronger rate. If you’re thinking longer term, locking into a CD with a longer maturity could allow you to secure your current rate before more rate cuts happen.
What works best may depend on how long you’re comfortable keeping funds in place, how soon you plan to access that money, and where you think interest rates are heading based on Federal Reserve signals. Read more about choosing a CD term.
How CD laddering helps in uncertain rate environments
When you’re unsure what direction interest rates might take next, setting up a CD ladder could offer more control over both your access to cash and your ability to maintain a steady APY.
This approach involves dividing your deposit across multiple certificates with staggered terms, such as one, two, or three years. As each certificate reaches maturity, a portion of your funds becomes available again while the rest continues to earn.
The idea is to reduce the risk of locking in everything at a single rate. In a rising-rate environment, CD laddering lets you take advantage of future higher yields while keeping some cash accessible.
Bottom line: Is now a good time to buy CDs?
If you’re still asking yourself whether now is the right time to open a certificate of deposit, the answer will depend on your financial goals and access needs. CD rates remain relatively high, but continued moves by the Federal Reserve could lead to lower APYs in the near future. Locking in a rate now could offer stability.
However, if having more liquidity is your priority, or if you think rate cuts may pause, you might want to consider alternatives that keep funds more accessible, such as high-yield savings accounts, money market accounts, or no-penalty CDs.
With Raisin, you can easily compare a wide range of shorter- and longer-term CDs, high-yield savings accounts, and money market savings accounts — all in one place. Find a term and rate that fits your savings strategy.
FAQs: Should I buy a CD now or wait?
How long do CD rates stay high once the Fed starts cutting?
Once the Federal Reserve begins cutting rates, CD yields typically follow suit — though not always immediately. Banks may take a few weeks or months to adjust, so there’s often a short window to lock in higher rates before they decline more noticeably.
Should I open a CD right now or wait for rates to rise again?
If you believe rates have peaked, opening a CD now could help you secure a higher fixed yield. But if you think rates might rise again, waiting could offer better returns — though it comes with the risk of missing out if rates fall instead.
Should I use a no-penalty CD if I’m unsure about locking in now?
A no-penalty CD can offer a flexible middle ground. It typically provides a slightly lower APY but allows you to withdraw your funds early without penalty, which could be helpful if your plans change or the market shifts.
How do HYSAs compare to 1-year CDs right now?
High-yield savings accounts (HYSAs) offer more liquidity and often competitive rates, but those rates can fluctuate. A 1-year CD offers a fixed return, which may be preferable for those who want predictable earnings and don’t need immediate access to their funds. You can use a savings account calculator to compare the returns on a CD and HYSA. Simply enter your savings amount, term length, and interest rates to see which option will help you reach your financial goals faster.
What role does inflation play in deciding to buy now or wait?
Inflation erodes purchasing power, so locking in a high-yield CD now could help preserve your savings’ value. If rates fall while inflation remains high, uninvested cash may lose value faster than it earns interest in a standard savings account. Read more about whether CDs are a safe investment during inflation.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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*APY means Annual Percentage Yield. APY is accurate as of May 20, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.