So, while mortgage rates have been soaring, CD rates are only inching up. When Will CD Rates Go Up?īanks typically move much more quickly to charge higher interest rates on loans and credit than they do to pay higher interest on savings. Some banks have raised rates during this period of uncertainty to incentivize existing customers and attract new ones. The good news is that your bank deposits are FDIC-insured up to $250,000 per depositor, per account ownership type and per financial institution.

Recent bank failures have many consumers worried about whether funds kept in CDs are as safe as claimed. As the federal funds rate increases, you can expect CD rates at many banks to follow suit. In both September and November FOMC meetings, however, the Fed decided to maintain the current target range for the federal funds rate while actively monitoring inflation to determine whether another rate increase might be needed.īanks generally use the federal funds rate as a guide when setting rates on savings and lending products.

In July 2023, the Federal Open Market Committee (FOMC) again raised the federal funds rate, this time to a range spanning from 5.25% to 5.50%.