If you've been holding off on opening a certificate of deposit (CD), this may be your last window to lock in a rate around 4.50% on a short term (those of a year or less).

CD yields have been unusually high for more than a year now, thanks to the Fed's aggressive fight against inflation. But the economy is shifting fast. And once the Fed starts cutting rates, CD yields will almost certainly follow.

I've covered personal finance and savings products for years, and we've seen this exact pattern before. When rates fall, they fall quickly -- and the best CD deals disappear with them.

Rate cuts are on the horizon

The Federal Reserve cut rates three times in 2024, and the market now expects at least one rate cut by the end of 2025.

Once that happens, banks won't need to offer eye-popping CD rates to stay competitive. It's hard to know exactly when the Fed will make a move, but it's crucial to act before then.

Why 4.50% is still a solid deal

A 4.50% APY may not sound as flashy as the 5.50% rates we saw in late 2023 -- but let's be honest, those were unicorns.

Right now, 4.50% is still beating inflation and outpaces some of the best high-yield savings accounts. And unlike a high-yield savings account, a CD rate is locked in for the full term. No surprises, no fluctuations.

That can be a big plus if you're setting aside money for a short-term goal -- like a home down payment, a wedding, or even just building a stable emergency fund.

Where to find the best CD deals today

You don't need to walk into a brick-and-mortar bank to get a great CD rate. Many of the top-paying options right now are online banks or credit unions.

Some are still offering 1-year CDs and beyond around 4.00%, but you'll need to shop around. The quickest way to find today's best rates at top banks is through our best CD rates roundup.

We make it easy to find the right fit, providing a variety of term lengths, required minimum deposit amounts, and institution types.

Don't wait for rates to drop further

You don't need to be a market timer to win with CDs. But you do need to act before the best rates disappear.

If you have extra cash sitting in a savings account, it might be time to lock in a high, guaranteed CD rate while you still can. Even if the Fed doesn't cut rates at the conclusion of their meeting today, they're likely coming soon -- and the CD market will move ahead of them.

It's not about squeezing every last basis point. It's about locking in a great rate before it's gone.