Savers are looking for signs of higher interest rates on CDs in 2023

Savers may be looking at interest rates on a one-year Certificate of Deposit that could reach 5.5% in 2023, a rate unimaginable for more than 15 years.

Amazingly, it’s not hard now – if you shop around a bit – to find a year’s CD with rates from 4% to 4.5%. With this kind of price, even young people in their twenties wonder if they should put some of their savings on the sidelines to earn a little extra cash.

After all, making big profits in 2022 wasn’t easy, and watching the chaotic crash of cryptocurrency exchange FTX can make a lackluster 4% CD now look pretty good.

How much money can savers earn based on higher rates?

When was the last time you heard anyone get excited about a CD? If you’re in your 20s or 30s, you probably never do. Who brags about making $12 a year in interest in recent years by setting aside $5,000 for one year or more?

But is there a chance of earning $200 in interest–with little to zero risk–on $5,000 worth of savings in a CD? You are now speaking.

“CDs have been under the radar for a long time,” said Greg McBride, chief financial analyst at, which lists prices for various products, including CDs.

Savers have been losing for years as the Federal Reserve pushes short-term interest rates to low levels to boost economic growth.

The Fed made two historically bold moves by pushing short-term interest rates as high as 0% twice – first in December 2008 to deal with the Great Recession and then again in March 2020 to deal with the economic meltdown at the start of the COVID-19 pandemic.

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