Should you open a CD before the March Fed meeting?

Following a month in which the Federal Reserve did not meet — but when a new inflation report showed more work to be done — millions of Americans will look to the bank later this month when it meets to determine the future of monetary policy on March 18 and March 19. That meeting will come after the latest inflation reading, this time for February, is released on March 12, and it will be amid new economic challenges and adjustments.

Ahead of this meeting, however, prospective investors may want to make select moves now. Savers, too, may benefit by exploring their savings account options for a way to earn more on their money. A certificate of deposit (CD) account, which comes with a high, fixed interest rate could be the way to do so. But should savers open one of these accounts before the March Fed meeting or is the strategic move to wait to see how that shakes out first? Below, we’ll break down what savers should consider right now.

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Should you open a CD before the March Fed meeting?

While opening a CD before a Fed meeting in which rate cuts are anticipated may make sense, this doesn’t appear to be the case this month. When the Fed was poised to cut rates last September, for example, it was advantageous to do so before that point as a Fed rate cut can and will impact the rates banks offer savers. So being aggressive then made sense. There was a similar argument to be made prior to the expected (and delivered) Fed rate cuts in November and December 2024, too. But that’s not the economic climate of March 2025.

Inflation started rising again after that September 2024 rate cut and has increased in October, November, December and January. Should the inflation reading for February show that the rate is rising again, it will all but ensure that the Fed will maintain the federal funds rate at its current range between 4.25% to 4.50%. That will keep rates on savings accounts and borrowing products relatively stable.

So, what does this mean for prospective CD account holders? It means that, unlike recent months, there’s likely not an urgent need to lock in a CD rate now. With the expectation that rates will remain frozen through the end of the month (the CME Group’s FedWatch tool has a rate pause listed at a 97% certainty), savers should instead use this time to shop around to find an account with the highest rate and best terms. With CD rates still readily available at over 4% now (especially if opened with an online bank), savers should use this lull in formal interest rate activity to take advantage by depositing as much money as they can into the account with the highest rate.

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The bottom line

While the timing behind opening a CD should always be strategic and nuanced, particularly in the economic climate of recent years, savers can pause briefly to think this March about their optimal choices. With rate cuts seemingly off the table but with CD interest rates still relatively high, it makes sense to shop around to find the best account for your individual needs and goals. Just don’t wait too long to act, either. It wasn’t that long ago that CD rates were around 1%, so acting now can ensure big returns both before and after the March Fed meeting and, hopefully, for months and potentially years to come.