The Best Savings and CD Rates Could Rise Even Higher After Next Week’s Fed Meeting

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With just over one week until the Federal Reserve’s last meeting of the year, CD and savings rates are still rising across the board. 

As the Fed’s next decision looms, not only are experts predicting another rate hike, but the Fed Chairman himself has signaled that rates will need to go higher to tame inflation.

“We will stay the course until the job is done,” Chairman Jerome Powell said in a speech last week.  

But the results of this year’s high interest rates, designed to tame runaway inflation, so far lag behind the Fed’s rate decisions. Despite a lower Consumer Price Index last month, “It will take substantially more evidence to give comfort that inflation is actually declining,” Powell said. “By any standard, inflation remains much too high.” 

As a result, you may still feel the pinch of high prices in your wallet. One tool you still have against rising prices today is improved interest rates on savings accounts. Even if you can only set aside a few bucks in a CD or high-yield savings account, you’ll be able to take advantage of rising rates and prepare for the future. 

Here are the best CD and savings rates this week, what to expect from the upcoming Fed meeting, and expert advice for boosting your savings today. 

How NextAdvisor Analyzes CD and Savings Rates

We compare three different averages in our average CD and savings rate analysis. First, we review national deposit rates from the Federal Deposit Insurance Corporation (FDIC) and Bankrate’s national index of deposit accounts based on a weekly survey (like NextAdvisor, Bankrate is owned by Red Ventures). We also calculate the current average rate of each bank on our list of best CD rates and best savings rates — you can find more about how we choose the banks included in our lists on those pages.

The differences between national average savings rates and NextAdvisor’s analysis of interest rates is largely due to the much higher APYs that online banks pay.

National surveys from the FDIC and Bankrate include many different types of financial institutions, including large national banks that charge as little as 0.01% APY. Our lists, on the other hand, is made up of online or hybrid banks with fewer overhead costs, which allows them to pass on savings in the form of interest to customers.

What Are the Best Savings Rates This Week? 

As savings rates go up, more high-yield accounts are inching closer to 4% APY. 

National surveys from both Bankrate and the FDIC remained stagnant — Bankrate showing average savings rates at 0.19% and the FDIC at 0.24% APY. However, these national averages also include traditional savings accounts, which usually have lower interest rates. 

The average of high-yield savings accounts we track at NextAdvisor, meanwhile, moved from 3.18% to 3.27%, after a few significant rate hikes and a new top rate. Here’s a list of the best high-yield savings account rates this week: 

What Are the Best CD Rates This Week?

CD rates went up again this week too, but not by much. 

Bankrate’s weekly national rate survey shows that one-year CDs moved up from 1.20% to 1.22% and three-year CDs remained the same at 1.02%. Five-year CDs made the biggest jump, from 0.98% to 1.07%. 

But CD rates that we track at NextAdvisor are much higher, despite only a small rate increase this week for all terms. One-year CDs moved from 4.14% to 4.20%, while three- and five-year CDs remained the same at 3.78% and 4.05% this week. 

Here are the best CD rates this week by term: 


  • CFG Bank 4.65% APY 
  • Bread Savings: 4.50%
  • Live Oak Bank: 4.50% APY 


  • CFG Bank: 4.60% APY 
  • Bread Savings: 4.50% APY 
  • Sallie Mae: 4.50% APY 


  • Bread Savings: 4.75% APY 
  • CFG Bank: 4.60% APY
  • Sallie Mae: 4.55% APY 

What to Expect from The Fed’s Next Meeting

Inflation combined with rising interest rates could soon become a recipe for an economic downturn, experts say. The Fed, too, has signaled a potential rise in unemployment as a result of the measures it’s taking to bring down inflation.

Last week’s jobs report showed unemployment remained the same month over month at 3.7%. Overall, 263,000 jobs were added. Experts and even Fed Chairman Jerome Powell have predicted a coming unemployment wave as a result of higher interest rates, though the labor market so far remains steady.

But just how much higher — or for how much longer — rates will rise remains unclear. It largely depends on how inflation trends over the next few months.

The Fed has signaled that the pace of rate hikes could start to slow down at next week’s meeting (the previous four rate hikes have all increased rates by 75 basis points).

“There will probably be a 50 basis rate hike instead of a 75 basis point rate hike,” says John Boyd, CFP and founder of MDRN Wealth Investment, a financial planning firm in Scottsdale, Arizona. But he’s not counting out the chance that rates will still go up in 2023, too. “That doesn’t mean that we’re not going to see the Fed funds rate at five or even higher next year, and stick at that level for some time.”

Read More: Inflation Remained Near a 40-Year High in September, Here’s What Costs More, and How to Plan for It

Budget for Your Savings

Expert advice for how to best prepare for an uncertain future is clear: Now’s a good time to build your emergency fund and start saving. 

An emergency fund can help you prepare for job and income loss or an unexpected expense, like a medical bill or home repair. Ideally, many experts recommend having at least three to six months of expenses saved. But if you’re just getting started, or already on a strict budget, that amount may seem overwhelming.

Start small, by automating savings to a high-yield savings account.

A high-yield savings account is the best place to park your emergency fund. You’ll have easy access to your money if you need it, and as rates continue to rise, you’ll earn more in interest because savings rates are variable. And scheduling automatic transfers is a “set and forget” method of saving. 

“I see huge success because it’s one of those things you just take off your plate,” says Crystal Rau, CFP and founder of Beyond Balanced Financial Planning in Midland, Texas. “It’s automated because who wants to think of a budget every day?” 

To get a closer look at how much you’re spending and saving, go over your monthly budget when the month ends. Diving deep into your transactions can help you understand your spending across different categories, says Joe Bautista, CFP and founder of Bautista Planning and Analytics, a financial planning firm in Lake Oswego, Oregon..

You can plan for how you want to approach your spending and saving for next month and be more aware of where your dollars are going, he adds. “Have self-awareness about what’s going on and then hopefully that can help you move forward.”

Here are more savings resources from NextAdvisor:

Savings and CD Rate Frequently Asked Questions

How high could CD rates go in 2022?

Some CD interest rates have already surpassed expert predictions of 4%. Based on NextAdvisor’s analysis, the average 1-year CD is already at 4.20%, with many rates much higher.

How often do interest rates on savings accounts change?

It depends on the bank. Some banks change high-yield savings account rates as often as weekly or bi-weekly, while others have longer gaps between rate changes.

Are 10 year CD terms worth it?

Experts don’t recommend long-term CDs in today’s rising rate environment. As interest rates continue to go up, you could be locking in a lower interest rate than what you could earn in the near future. Instead, experts recommend short-term CDs, with terms between six months and one year.

How much money should I keep in my savings account?

It depends on your goals. Most experts recommend keeping your emergency fund in a high-yield savings account withat least three to six months of expenses. For other short-term financial goals, savings some additional money in a  sinking fund can be a good idea, too.