Feeling a little unsure about what to do with your money? This strategy will help you to protect your savings against tariffs

Takeaways

• The announcement of tariffs across the globe by President Trump this week has increased the odds of inflation and recession.
• Many Americans are left wondering where to invest their money in the current uncertain climate.
• One strategy, however, can bring some predictability to your savings plan. That is a CD with a guaranteed APY over a period of months or years.
• While CDs always offer a locked-in return, today’s CDs are also paying historically high rates—as much as 4.65%.
• A high APY is unlikely to last long, however, due to expected Fed rate cuts. It’s smart to lock-in a top CD rate as soon as you can.

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CDs Are Super Safe and Predictable—With the Bonus of Paying Really Well Right Now

President Trump announced on Wednesday that he would be imposing tariffs around the world that were higher than expected. This has caused a wave of revisions in economic predictions. The probability of the U.S. entering a recession is now higher than earlier in the week, and the prospect of rising inflation is also greater—leaving the Federal Reserve in a tricky spot on deciding 2025 interest rates.

Fortunately, there are some things that you can count on. Certificates of Deposit (CDs) offer a guaranteed and fixed return, even though the stock market is currently experiencing a decline and rates on savings accounts can change at any moment. Not only can you lock in the return for a period of time that suits you, but also for a number of years or even for a short period.

A predictable rate is not special if it is not accompanied by a good return. Today’s CDs offer a great option. Having benefited from the Federal Reserve’s historic rate-hike campaign of 2022–2023, the best CD rates are still riding high, offering a mid-4% return across all of the major terms.

Today’s top rate is 4.65%, available for a rate lock of 5–7 months—which would guarantee your return until this fall. You can also lock in a rate of up to 4.40% until 2030.

If you have cash in the bank, or are considering moving some investments into cash, a CD will help you grow your balance. Because all the CDs listed in our daily rankings are offered by FDIC and NCUA insured banks, your money will be federally protected.

Smart CD Strategies in Today's Rate Environment

Certificates of Deposit can help you increase your earnings over time because they offer a fixed interest rate that neither the bank nor credit union can lower. There are a few smart strategies that can make CDs work for your benefit.

You’ll want to always keep some of your savings in a liquid account such as a high yield savings account. Because CDs offer a guaranteed interest rate in exchange for keeping your money on deposit until it matures. You’ll be charged an early withdrawal fee if you cash out your CD early. You can use the money in your savings account first in an emergency and avoid having to cash out a CD early.

Put your reserve in an e-savings account

Even though savings accounts do not have rate guarantees like CDs you can earn a great return right now. The best high-yielding savings accounts today pay up to 4.60%. More than a dozen of these options pay at least 4.40%.

It cannot be stressed enough that you should shop around. The national average rate for a 1-year CD across all FDIC banks is just 1.78%. By shopping our daily rankings of best CDs you can find over a dozen options that pay 4.40%-4.60% for a period of one year. This is 2.5x more than the average national rate.

Third, you can open more than one CD and split your money across multiple certificates with different durations. Even if you aren’t striving to create a full-fledged CD ladder, spreading your money out over more than one CD, with different terms, means you’ll have funds becoming available at various times—which can perhaps help you avoid withdrawing funds from a longer certificate before it matures.

Act Now—Because Here's Where Rates Are Likely Headed

Our last advice is to avoid delays. According to the CME Group’s FedWatch Tool at the time of this writing, financial markets are currently pricing in around 60% odds that we’ll see Fed rate cuts totaling a full percentage point—or even more—by the end of 2025. Time will tell whether this will happen, but any reduction in rates by the central bank is likely to push rates on savings accounts and CDs lower. It’s a good idea to lock in today’s rates while they are still available.

Daily Rankings for the Best CDs, Savings Accounts and Investments

We update this ranking every day of the week to provide you with the best rates for deposits.

• Best 3-Month CD rates
• Best 6-Month CD rates
• Best 1-Year CD rates
• Best CD Rates for 18-Months
• Best 2-Year CD rates
• Best 3-Year Rates on CDs
• Best 4-year CD Rates
• Best 5-Year CD rates
• Best High-Yielding Savings Accounts
• Best Money Market accounts

It is important to note that

Note that the "top rates" quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is a much higher rate than the national average which includes all banks with a CD of that term. This includes many large banks who pay pittances in interest. The national averages will always be low, but the best rates are often five, ten, or even fifteen times higher.

How to Find the Best CD Rates and Savings

Investopedia tracks daily the rates of more than 200 banks, credit unions, and savings accounts that are offered to customers across the country. This data is used to determine the best-paying accounts. For an institution to qualify for our lists it must be federally-insured (FDIC or NCUA for credit Unions) and the account must have a minimum initial deposit of no more than $25,000. The maximum deposit amount cannot be less than $5,000.

Nationally available banks must be present in at least 40 different states. While some credit unions ask you to donate to an association or charity to become a part of their organization if you don’t meet the other eligibility criteria, (e.g. if you don’t live in certain areas or work in certain types of jobs), we exclude credit Unions that require a donation of $40 or more. Read our methodology to learn more about how we select the best rates.

Article Sources Investopedia asks writers to use primary resources to support their writing. These include whitepapers, government data, original reports, and interviews with experts in the industry. We also use original research from other reputable publications when appropriate. Learn more about our standards for producing accurate and unbiased content by visiting our Editorial Policy

1. FDIC. "National Rates and Rate Caps."

2. CME Group. "CME FedWatch Tool."