FAQs:

1. What is a certificate of deposit (CD)?
A certificate of deposit, or CD, is a savings account with a fixed interest rate and fixed date of withdrawal, known as the maturity date.

2. Are CD rates guaranteed?
Yes, CD rates are guaranteed for the entire term of the CD.

3. Are CD rates volatile?
Yes, CD rates can be volatile, with fluctuations influenced by economic events and changes in interest rates.

4. How can I access historical CD rate data?
Historical CD rate data can be accessed through sources such as the Federal Deposit Insurance Corporation (FDIC) and Mortgage-X.

5. Should I invest in CDs during economic uncertainty?
CDs can be a stable investment option during periods of economic uncertainty, offering low-risk returns compared to the stock market.

Conclusion:
Understanding the historical trends of CD rates can provide valuable insights for investors looking to park extra cash in a safe and stable investment vehicle. With CD rates closely tracking the federal funds rate and shorter-term CDs being more sensitive to changes in interest rates, investors can make informed decisions based on economic events and interest rate movements. Despite the volatility in CD rates over the years, CDs remain a reliable option for individuals seeking guaranteed returns on their savings.