PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMycpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8xJyk7bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzMuMScpOzwvc2NyaXB0Pg==Ann C. Logue is a freelance writer specializing in business and finance. She is a chartered financial analyst, and before coming into writing, she worked for 12 years as an investment analyst. She's written five books on investing for Wiley’s …For Dummies series, and her freelance writing has appeared in the New York Times, Barron's, Newsweek, and Entrepreneur, among others. She can be reached at annlogue.comHearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research. Mobile app users, click here for the best viewing experience.The first half of 2023 has been a boon for savers: The best interest rates on certificates of deposit (CDs) have topped 5%, the highest they’ve been in about 15 years. Since CDs require a commitment, however, that leaves many wondering: Will CD rates go up even more in 2023? Or have they hit their peak? The answer depends on where the economy goes as well as what happens in the banking system. An interest rate is nothing more than the price of money, and like any price, it’s determined by supply and demand. The more that consumers, businesses and governments want to borrow money, the higher rates will go. The more that people want to save, the lower rates will go. Of course, the Federal Reserve system can give rates a nudge to help manage the economy. Here's what you need to know to get the most out of CDs over the coming months.What are today’s CD rates?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If you’re willing to shop around, however, you may find higher rates, especially if you consider online banks, which tend to pay more interest.What influences CD ratesCD rates are based in part on the federal funds rate, which is the interest rate on balances that banks hold at the Federal Reserve banks. When the central banks want to soften or strengthen the economy, they adjust the rates that they charge or pay banks in the system. The Fed has raised the federal funds rate 11 times in the past year-and-a-half in an aggressive campaign to cool inflation. Most recently, it hiked interest rates by 0.25% on July 26, bringing the benchmark borrowing rate to between 5.25% and 5.50%.Member banks then set the rates that they charge on loans and pay on savings accounts, including certificates of deposit. Considerations include the fed funds rate, whether the bank needs deposits to fund its loan portfolio, and what competitors are doing. To protect member banks from overpaying to attract capital, the Federal Deposit Insurance Corporation sets a cap for less than well capitalized institutions. Because many factors go into setting CD rates, savers find it pays to check out the offerings at multiple banks before locking their money away. Where experts predict CD rates will go nextIt seems that another Fed rate hike in September is all but a given, based on Fed Chair Jerome Powell's August 26 remarks at an economic symposium in Jackson Hole, Wyoming.'We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective," he said.That also suggests that the Fed doesn't plan to cut rates this year, either. But will it stop hiking them before the end of 2023?Many economists think so — which would mean that interest rates on CDs are likely nearing their peak. However, since the Fed is expected to hold the federal funds rate at a high level for a while, CDs rates will probably stay elevated for the foreseeable future, too.A CD ladder is a great way to moderate your risk: It will allow you to lock in high rates right now but also hedge against the future, whether rates continue to rise or begin to fall. Instead of putting all your money in one CD, with a CD ladder, you spread your money among several CDs with different maturity dates. This way you're not committing too much money to one rate.Pros and cons of CDsBecause a CD is a commitment, you’ll want to consider how it fits into your personal financial picture. ProsHigher interest ratesA safe, FDIC-insured way to save moneyFixed interest rate, so it will stay the same for the term even if the market shiftsYou can predict how much your money will growConsYour money is locked in for a specific amount of timeThere are penalties for early withdrawalsThe fixed interest rate can turn into a negative if rates on other types of savings accounts go up during the termLower return over the long-term than you’d get from investing in the stock marketThe bottom line for 2023 CD ratesThe consensus for interest rates seems to be that rates are likely to rise slightly more this year before leveling out. This means that CD rates are probably at or near their peak. Still, if you’re concerned about missing out, look for CDs that have no penalty for moving funds into a CD with a higher rate.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.