Here’s Why I’m Not Opening CDs This November — Even With Rates at Over 4%

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For a while there, it seemed like 5% CDs were here to stay. The Federal Reserve didn’t seem to be in a rush to lower interest rates, and many savers got to lock in CDs at 5% for a pretty long stretch.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. That streak may be over, though. The Fed has already made two interest rate cuts this year, and more are expected. At this point, 5% CDs definitely aren’t the norm.But it’s more than possible to open a CD in the 4% range. Whether you’re able to lock one in at 4.25%, 4.5%, or 4.75% will depend on your bank and the length of your CD’s term. But today’s rates are still quite competitive, so it’s worth it to check out this list of the best CD rates today.But while CD rates still look pretty good on a whole, I don’t plan to open one this month. I also don’t see myself opening a CD anytime in the near future, even though I know that might mean missing out on the chance to lock in a CD before rates fall quite a bit. Here’s why.When a CD doesn’t fit in with your goalsAlthough it’s tempting to lock in a CD somewhere in the 4% range, that return doesn’t work for me. Call me greedy, but I’d prefer to earn a much higher return than that.That’s why I’m putting my spare money into stocks this month. And you may want to open a top-rated brokerage account and do the same.Over the past 50 years, the S&P 500 has averaged an annual 10% return, accounting for years when stock values soared and years when they plunged. Investing in stocks is a dangerous thing on a short-term basis, because you need time to ride out market downturns. But since the thing I’m most focused on saving for — my retirement — is still pretty far off, it makes sense for me to put my money into stocks instead of settling for the return a CD might give me.In fact, I hope to be in a position to bank an extra $1,000 by the end of November (helped by the fact that I tend to be a holiday shopping procrastinator who saves the bulk of her purchases for December). If I open a 12-month CD at 4.5%, I get to earn $45. If I’m somehow able to earn 4.5% on a $1,000 CD I renew for the next 20 years, I’m looking at earning $1,411 on it.But if I invest my $1,000 at an average annual 10% return over the next 20 years, I could end up with $5,727 instead. That’s a much more appealing number.Don’t panic-open a CD before rates fallA lot of people I know are rushing to open CDs before rates drop even more. And if you have a near-term goal you’re saving for, then I’d encourage you to do the same.But if you’re talking about money you’re earmarking for a far-off goal, like retirement, then I strongly recommend investing in some shape or form. You could stick to a regular brokerage account, or open an IRA for the tax benefits involved if you’re specifically looking to save for your senior years.Even if you don’t end up snagging a 10% yearly return in your portfolio, there’s a good chance you’ll end up doing better than what today’s top CDs are paying. So there’s no need to settle for 4.5% or something in that vicinity when stocks may easily deliver twice that return, or even more.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

For a while there, it seemed like 5% CDs were here to stay. The Federal Reserve didn’t seem to be in a rush to lower interest rates, and many savers got to lock in CDs at 5% for a pretty long stretch.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

That streak may be over, though. The Fed has already made two interest rate cuts this year, and more are expected. At this point, 5% CDs definitely aren’t the norm.

But it’s more than possible to open a CD in the 4% range. Whether you’re able to lock one in at 4.25%, 4.5%, or 4.75% will depend on your bank and the length of your CD’s term. But today’s rates are still quite competitive, so it’s worth it to check out this list of the best CD rates today.

But while CD rates still look pretty good on a whole, I don’t plan to open one this month. I also don’t see myself opening a CD anytime in the near future, even though I know that might mean missing out on the chance to lock in a CD before rates fall quite a bit. Here’s why.

When a CD doesn’t fit in with your goals

Although it’s tempting to lock in a CD somewhere in the 4% range, that return doesn’t work for me. Call me greedy, but I’d prefer to earn a much higher return than that.

That’s why I’m putting my spare money into stocks this month. And you may want to open a top-rated brokerage account and do the same.

Over the past 50 years, the S&P 500 has averaged an annual 10% return, accounting for years when stock values soared and years when they plunged. Investing in stocks is a dangerous thing on a short-term basis, because you need time to ride out market downturns. But since the thing I’m most focused on saving for — my retirement — is still pretty far off, it makes sense for me to put my money into stocks instead of settling for the return a CD might give me.

In fact, I hope to be in a position to bank an extra $1,000 by the end of November (helped by the fact that I tend to be a holiday shopping procrastinator who saves the bulk of her purchases for December). If I open a 12-month CD at 4.5%, I get to earn $45. If I’m somehow able to earn 4.5% on a $1,000 CD I renew for the next 20 years, I’m looking at earning $1,411 on it.

But if I invest my $1,000 at an average annual 10% return over the next 20 years, I could end up with $5,727 instead. That’s a much more appealing number.

Don’t panic-open a CD before rates fall

A lot of people I know are rushing to open CDs before rates drop even more. And if you have a near-term goal you’re saving for, then I’d encourage you to do the same.

But if you’re talking about money you’re earmarking for a far-off goal, like retirement, then I strongly recommend investing in some shape or form. You could stick to a regular brokerage account, or open an IRA for the tax benefits involved if you’re specifically looking to save for your senior years.

Even if you don’t end up snagging a 10% yearly return in your portfolio, there’s a good chance you’ll end up doing better than what today’s top CDs are paying. So there’s no need to settle for 4.5% or something in that vicinity when stocks may easily deliver twice that return, or even more.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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