Will CD Rates Go Up in 2023

will cd rates go up in 2023

In the ever-fluctuating financial landscape, one question that often arises among savers and investors is the direction of CD (Certificate of Deposit) rates. As we approach 2023, there’s a growing interest in the potential trajectory of these rates. So, will CD rates go up in 2023? Let’s delve into the predictions and the driving forces behind CD rate changes.

Understanding CD Rates

Before making projections, it’s vital to understand what CD rates are. A Certificate of Deposit is a time-bound savings account offered by banks and credit unions, typically at a fixed interest rate. They’re favored for their low risk, but the return (or interest rate) is closely tied to the broader economic environment.

Factors Impacting CD Rates

Several economic factors play a role in determining CD rates:

1. Federal Reserve Policies: The Fed’s decisions on short-term interest rates directly influence bank lending and deposit rates, including CDs. 2. Inflation Expectations: Rising inflation often leads to increased interest rates as financial institutions aim to offer real returns to investors. 3. Economic Growth: In a robust economy, banks might raise CD rates to attract more deposits, which can then be loaned out to borrowers. 4. Global Economic Conditions: International events, such as financial crises or major policy changes, can influence U.S. interest rates.

Predictions for 2023

Given the dynamic nature of economies, making precise predictions is challenging. However, by considering expert opinions, recent Fed communications, and economic trends, we can gain some insights:

  • Federal Reserve Stance: If the Fed signals or has recently hiked interest rates due to reasons like inflation concerns, it can be a positive indicator for rising CD rates.
  • Inflation Trends: If 2022 witnessed rising inflation, banks might adjust CD rates upwards in 2023 to maintain investor interest.
  • Economic Health: Indicators like GDP growth, unemployment rates, and consumer confidence can provide clues. A thriving economy might usher in higher CD rates.

What This Means for Savers

If CD rates are expected to rise in 2023, savers might consider:

  • Short-Term CDs: Instead of locking in current rates for long durations, consider shorter-term CDs. This way, you can reinvest at a higher rate when your CD matures.
  • Laddering Strategy: This involves buying CDs of varying maturities. As each CD matures, reinvest in a longer-term CD, which might have a higher rate.


While the question, “Will CD rates go up in 2023?” is valid, the answer relies heavily on unfolding economic scenarios. By staying informed and understanding the influencing factors, savers and investors can make more strategic decisions, ensuring they get the best returns on their investments. Always consider consulting with a financial advisor for tailored advice.

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