With inflation lingering and the prices of many goods and services rising, finances have been hard for many Americans these past few years. The one silver lining, though, has been high savings account and certificate of deposit (CD) rates, which have allowed savers to earn more interest on the cash they've stowed away.

The tables have turned recently, though, and rates on CDs have started to fall. Unfortunately, there's a good chance they'll fall further soon, too — especially if the Federal Reserve makes changes to its federal funds rate over time.

Still, that doesn't necessarily mean CDs are a bad idea these days. Before you put your money into this type of account, though, you may want to consider the expert-driven advice below.

.

CD account advice to follow now, according to savings experts

Are you considering putting your extra cash in a CD soon? If so, you may want to heed this advice from CD experts. 

Open your account sooner rather than later.

If you're thinking about putting money in a CD account, the time to act is now. The Federal Reserve is scheduled to meet a few more times this year, and they're largely expected to cut interest rates at least once more before year's end. 

"Currently, the market is predicting that the Fed will cut rates later this year, which means that it's likely we will continue to see CD rates tick down," says Shana Hennigan, chief business officer at savings marketplace Raisin. "The market consensus is that the Fed will begin cutting rates in September."

That means we could start to see lower CD rates in a couple of months as well. So, if you see a good CD rate now, you should probably move quickly. 

"Financial institutions offer great rates with the intention of attracting a target volume of deposits and once they reach their goal, they will lower the rates," says Mary Grace Roske, senior vice president of communications at CDValet. "So, if you see a rate you like, don't hesitate to jump on it and remember that idle funds are not earning you any interest."

If you're not quite ready to act but see good CD rates on the market, ask for more information.

"You can review the institution's disclosures to see how long the rates are being offered, which will tell you how long you have to decide," says Brittany Pedersen, director of deposit and payment operations at Georgia's Own Credit Union. 

.

Always shop around — especially when your CD is at maturity.

As with any financial product, it's important to shop around and compare offers from different banks and credit unions, especially as CD rates are dropping.

"Even while it's predicted that rates will trend downwards later in the year, there are still great CDs out there with attractive rates from a historical perspective," Hennigan says. "Don't forget to consider smaller community banks and credit unions as well as online banks."

You should also shop around if you have an existing CD that's nearing its maturity date. If you don't, your funds will just roll over into a new CD account with the same term at your existing institution, and that might not be the best move for your money. 

"Roughly 80% of CDs are up for renewal in 2025, and a good share of those will mature this summer," Roske says. "Consumers should always research rates before defaulting to an autorenewal."

According to Roske, nine out of 10 of the best rates on CDValet.com (as of June 10) were from credit unions. 

Choose short-term for better rates and long-term to protect against rate drops.

Before you determine what CD account to open, make sure you know your goals. For example, are you looking to save for a specific, time-sensitive goal? Do you simply want to make the most in returns, or would you like long-term protection from rate drops? Your answers will determine what CD account terms to look at.

"Right now, shorter-term CDs are offering higher rates because the expectation is that rates will be lower in the future," Hennigan says. "However, if you are concerned about rates decreasing in the long run, locking your money in for a longer term at a slightly lower rate may be a good move."

For the absolute highest returns, Roske says to look at CDs with terms under one year.

"We have also seen an increase in more competitive one-year offerings," Roske says. "Over the past 30 days, 16% of the rate hikes on CDValet were on one-year CDs. Those CDs had an average APY increase of 39 basis points."

If you want a good mix of high rates and long-term protection, consider a CD ladder, which spreads your cash across both short- and long-term CDs with different maturities.

"CD laddering is a good strategy to bridge the difference between short- and long-term rates," Hennigan says. "You can benefit from the higher yields available from shorter-term products while keeping some of your cash at a guaranteed rate for a longer period."

Understand your risks.

Last but not least, know the risks of using a CD. Since these accounts have a set maturity date, you'll need to leave the money untouched if you want to reap the full benefits of the account's interest rate. 

If you don't, you'll likely owe an early withdrawal penalty. These vary by institution and could amount to a hefty sum, depending on the account.

"Be aware of any early withdrawal penalties, and if you are considering a fixed-term product, make sure you have an emergency fund handy," Hennigan says. "Making sure you have enough cash accessible in case of an emergency is vital — otherwise you may incur penalties that can eat some or all of your earnings if you have to break the terms of your CD."

The bottom line 

While CD rates may be on the decline, they can still be a smart and secure way to grow your savings — especially if you act quickly. Locking in a solid rate now could help you get ahead of future cuts and make the most of your idle cash. Just be sure to shop around, understand the terms, and match your strategy to your financial goals. With a little planning, CDs can still deliver real value in today's changing rate environment.