What is interest rates on cds
Interest rate fluctuation Like all fixed income securities, CD valuations and secondary market prices are susceptible to fluctuations in interest rates. If interest rates rise, the market price of outstanding CDs will generally decline, creating a potential loss should you decide to sell them in the secondary market. The interest rates banks offer on CDs and other types of deposits can change based on how the U.S. Federal Reserve sets its interest rate policy. Federal Rate Cuts The Federal Reserve serves as the central bank of the United States and is tasked with supervising and regulating banks to make sure that the financial system is stable.