Here’s Why Ignoring CD Rates Could Be the Most Expensive Mistake You Make in 2025

Image source: Getty ImagesCD rates are already starting to slide in 2025, and the window to lock in some of the highest returns in years is closing fast. After two years of hikes that pushed top 1-year CDs up around 4.50% APY, the Federal Reserve has now started cutting rates. Banks are following suit. Wait too long, and the CDs available later this year could pay far less than what’s on the table today.The impact on your wallet is real. A $25,000 deposited at 4.50% APY would earn about $1,125 in a year. Let that same money sit until rates drift down to 3.50%, and you’d only pocket $875. That’s $250 gone in a single year, just for waiting. Stretch that out over bigger deposits or multiple years, and the missed earnings pile up quickly.Continue readinghttps://www.fool.com/money/banks/articles/heres-why-ignoring-cd-rates-could-be-the-most-expensive-mistake-you-make-in-2025/