Top 1-year CD rates exceed 4.40% after Fed hike, Old National says
ONB•Old National says the Fed’s September rate hike lifted its benchmark range to 3.75%-4%, and the highest tracked 1-year CD rate reached 4.45% APY in early October, compared with the FDIC national average of 1.73%.
1. CD rates and options
Old National’s November 5 analysis highlighted higher certificate of deposit yields amid uncertainty over the Federal Reserve’s next move. Fixed rates can suit savings earmarked for known near-term expenses, but early withdrawal penalties can exceed earned interest and reduce principal. CD ladders provide staggered access to funds, while no-penalty CDs offer withdrawal flexibility at typically lower yields.
