The interest rate set by the Federal Reserve is the highest it’s been since 2007. We are now seeing that affect the terms of some savings accounts offered by banks. Case in point: certificates of deposit, or CDs.
Some banks are offering about 5% for consumers to put their money in a one-year CD. But with the recent low-interest rate environment, banks may have to explain to their customers what CDs are in the first place.
Merrill Reynolds, Certified Community Bank Director's Program Managing Director, shares insights on CDs.