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Key Takeaways
- The government shutdown is delaying key economic reports that the Federal Reserve normally uses to guide interest rate decisions.
- The Fed’s Oct. 28–29 meeting is still expected to proceed, since the central bank is funded independently and can utilize private-sector data when government sources are unavailable.
- Savers can still benefit from today’s elevated yields, with the top savings accounts and best CDs offering returns of 4%–5%. But don’t delay, as rates will fall if the Fed moves ahead with more cuts.
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Key Fed Data Could Go Dark During the Shutdown
Since the government shutdown began Oct. 1, the flow of economic data has slowed, leaving the Federal Reserve with less to guide its next rate decision. The Bureau of Labor Statistics has already missed its monthly jobs report, keeping the public and policymakers guessing about the true state of the labor market.
The next major release at risk is the Consumer Price Index, which tracks inflation and heavily influences the Fed’s thinking on future rate moves. Beyond that, reports from the Bureau of Economic Analysis—including the Fed’s preferred inflation gauge, the Personal Consumption Expenditures price index—could also be delayed if the shutdown continues.
The Fed’s next meeting is scheduled for Oct. 28–29. Policymakers depend on those jobs, inflation, and spending figures to decide—meeting by meeting—whether to adjust rates and by how much.
If key data remain unavailable before the meeting, it could inject greater uncertainty into the Fed’s deliberations. “We need to be very cautious about rate cuts from here … so that you don’t ease conditions too much only to have to reverse course, which would be very painful in terms of restoring price stability,” Lorie Logan, the Federal Reserve Bank of Dallas president, said at the University of Texas at Austin on Oct. 2.
Why This Matters for You
The Fed’s rate decisions help determine how much interest banks and credit unions pay on savings accounts and certificates of deposit (CDs), so each Fed move can have a real impact on what you earn on your cash.
The Fed Will Still Meet—and It Will Probably Stick With Its Plan
Though a lack of economic data may impair the Fed’s ability to fully assess the state of employment and consumer prices, it’s doubtful the committee would postpone its regularly scheduled two-day meeting.
One reason is that the shutdown doesn’t affect the Federal Reserve’s day-to-day operations. The central bank is funded independently and not subject to the congressional budget process. That means everyone at the Fed is still working, with business proceeding as usual.
Another reason is that the U.S. government isn’t the only data source the Fed can draw on. It can also evaluate private-sector data. Normally, labor market reports from firms like ADP and Challenger, Gray & Christmas take a back seat to official government statistics. However, in situations like this, when federal data are unavailable, private releases can help fill the gap.
Fed rate decisions are never certain until they’re officially announced, but in the meantime, savers and investors can track what markets are expecting with the CME FedWatch Tool, which updates in real time to show how futures traders are betting on rate changes. As of this writing, traders still see about a 95% probability that the Fed will proceed with a quarter-point rate cut at the end of this month.
Why It’s Still a Great Time To Lock In High Yields
Whether the Fed lowers rates in three weeks or not, you can still take advantage of today’s still-high returns on your cash. The top high-yield savings accounts are paying 4.26% to 5.00%, while CDs offer yields above 4% across every term from three months to five years. The top nationwide CD rate is 4.45% for a five-month term, but several CDs in the two- to three-year range are paying 4.25%, allowing savers to lock in solid returns through 2027 or beyond.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is different from the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
