Why Suze Orman Says To Get a CD Now

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On a podcast episode from 2024, money expert Suze Orman explained why people should invest in a certificate of deposit (CD). She advised any listeners thinking of getting a CD to take advantage of the market conditions today.

Here’s what you need to know about CDs, current interest rates and why you might want to take Orman’s advice.

Quick Take: What Are CDs?

A CD is a type of high-yield savings account offered by many banks and credit unions. Here are some key takeaways: 

• Unlike with traditional savings accounts, funds stored in your CD aren’t meant to be withdrawn for a prespecified amount of time.
• The trade-off for not withdrawing your money is that your investment will accrue more interest over time. 
• CDs typically offer higher interest rates than other types of savings accounts. That said, you can withdraw the funds early if you really need them — you’ll just incur a penalty. The exact fee depends on your bank or credit union.
• CD terms usually range from three to 60 months. 
• The rates are determined by each bank, but they can be influenced by certain economic factors, such as inflation and federal interest rates — that’s why it’s so important to pay attention to the current market conditions when you’re shopping for CDs.

What Is Going On With Interest Rates?

In late September of last year, the Federal Reserve cut interest rates for the first time since 2020. The reduction of 0.5 percentage points finally lowered the federal funds rate from its 23-year high.

While this was great news for people looking to take out an auto loan or mortgage, it might be a red flag if you’re considering getting a CD. Lower federal interest rates mean a lower yield, and, according to Orman, it’s likely that rates will continue going down after this initial cut — meaning you won’t get as good of a deal on your CD if you wait too long.

On top of that, the lower interest rates may be a positive thing for other aspects of your personal finances. You might be considering refinancing your mortgage or consolidating your debt to save money. With a little extra wiggle room in your budget, now may be a great time to invest in a CD and set aside those extra funds for the future.

Orman acknowledged that she might be wrong — rates could go up again — but she and other experts expect rates to continue decreasing. As of March 2025, the Federal Reserve has kept interest rates steady at 4.5%.

Final Take To GO: Current CD Rates in 2025

The bottom line is that while CD rates generally fluctuate with federal interest rates, your exact yield will depend on the bank or credit union you choose and your location.

Some banks are currently offering annual percentage yields as high as 5.00% for short-term CDs. To put that into perspective, as of March 2025, the national average APY for a 1-year CD is around 1.86%, so make sure you find the best account and savings product for your finances. 

When choosing a CD, remember that you don’t have to go with the financial institution you currently bank with. Shop around and compare the deals in your area, and keep an eye out for promotional offers that may help you lock in a higher yield.

The sooner you act, the more likely you are to get a good deal on a CD before interest rates drop again.

Quinlan Grim contributed to the reporting for this article.

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